Freelancing commission

[gnokkybbob]

Hi, what are the pros and cons to work as a freelance to real estate agency instead of being a direct employee?

And if let's say one real estate agency is a division of a company. And this child company goes for a closure, can we still claim the oustanding balance of commission to its parent company?

 

[Terry_w]

H
And if let's say one real estate agency is a division of a company. And this child company goes for a closure, can we still claim the oustanding balance of commission to its parent company?

Depends who your contract is with and if there are any guarantees..

 

[Paul@PFI]

Being a contractor is unlikely to change a single tax deduction. You may be adversely affected through issues such as insurance, liability, risk of loss of tenure and some entitlements etc.

Personal Services Income (PSI) rules were introduced a long time ago to limit the spread of fake contractor arrangements seeking to gain tax advantages. One of the key rules is that the business cannot claim deductions beyond those a employee would claim.

You and the employer may be in breach of the Fair Work Act in any event and its a sham. eg : Many employers remain liable for super for contractors when they think the contractor becomes liable.

The unpaid debt issue may raise a bigger problem of insolvent trading or other instances where the Directors may remain liable. Discuss your concerns with a solicitor. If the child company is reborn again there could be a concern of a phoenix company activity to leave unpaid debts. This could place a REA license at threat.