Umbrella Company Australia

Independent contracting in Australia isn’t straightforward. You’ve got immigration issues, tax difficulties, and mountains of complex admin work. Even worse, missteps can cost you serious money, or even land you in legal trouble.

Before you consider taking a contract in Australia, you should be aware of what you’re getting into – and how you can make it simpler.

Umbrella Company Australia

Difficulties of contracting in Australia

Generally, you need to have an employer sponsor in order to secure the appropriate work permit and work visa for Australia.

If you’re working independently, it can be difficult to find clients willing to sponsor you. Moreover, even if your client can do this, you’ll need a new sponsor each time you decide to take on a new contract. Of course, every new sponsor will mean more paperwork.

Also, are you deeply familiar with the intricacies of the tax system in Australia, as well as your own country’s laws on overseas earnings? If so, good on you!

However, if you’re like the rest of us, figuring out (much less reducing) your tax liability in Australia and your home country can seem like full-time work in itself.

How Umbrella Companies in Australia work

Most freelance workers aren’t mystical superheroes who successfully tackle these issues all on their own. There are companies who specialise in helping workers make the most out of their contracts.

They’re called Umbrella Companies (or, contractor management companies).

How do they work?

Basically, an Umbrella Company acts as your full-time employer, even though you maintain your independence as a contractor. They collect and filter payments from your clients, filtering out the necessary social security and fees. You send them your timesheets, and they send you payments.


Because they act as your “employer,’ they can sponsor you and provide a single work permit for multiple contracts.  


Even better, most are experts in Australia and expat tax law, meaning they’ll also help you optimise your earnings.

Although the Umbrella Company is technically your “employer,” you’re essentially freeing yourself to work even more independently. You still dictate your contracts, your hours, your schedule. The Umbrella Company simply filters out the time-consuming admin and immigration issues, allowing you to focus on your new contract.

How we help with Umbrella Companies in Australia

There’s a huge variety of Umbrella Companies out there; they all have different specialties and advantages. How do you find the right one for your circumstances?

We work closely with Umbrella Companies all throughout Australia and match contractors with the right company for them. If you’ve already secured a contract in Australia, we can help you find your best match (for free). Or, we can simply give you feedback on your situation (for free). 

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  Common Questions and


Common Questions and Answers about Umbrella Companies in Australia

Q: What is the monthly cost to use an umbrella company in Australia?

A: 5%

Q: What is the estimated net retention for a contractor in Australia earning USD 1000 per day?

A: If sponsored they will earn approximately 65%. If they don’t require sponsorship they will net approximately 70% dependent on expenses.

Q: Can an Umbrella Company sponsor work permits for contractors in Australia? 

A: Yes provided they meet the job title and earnings level requirements. The contractor needs to be earning at least A$400 per day and in a 6-12 month contract in IT / Engineering / Finance.