Following on from my Tip last week (talking about the definition of a Contractor), I wanted to go through some of the “Pros and Cons” of contracting versus being an employee. Everyone’s circumstances are different, and what suits one person may not be the best way for someone else. To help you decide whether to become an independent contractor, I have researched some ‘pros and cons’ of contracting: Pros More independence…you can be your own boss Be paid for each hour you work There may be some tax benefits Cons Lower job security No ‘employee’ benefits such as Super Guarantee contributions You will need to provide your own insurance and workers compensation You are not paid for any hours not worked You are responsible for paying your own taxes, and will need to get an ABN Contracting involves a lot of planning, forethought and self-motivation. Before making your final decision whether to become an independent contractor, make sure you consult both your tax adviser and solicitor who can advise on your individual circumstances.