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BlakeEng(Newbie)Newbie
6 Aug 2024

I work for a construction company providing engineering and compliance advice (not approvals), all of the design engineering work and approvals are contracted to external Engineering Consultancies. My employer is not interested in holding the insurances necessary to complete the work 'in house'.


I am looking at opening a small consultancy (pty ltd) and can provide design and engineering services to my employer carrying the necessary insurances etc. My employer would represent a significant part of the revenue in the first couple of years but there would be other clients and likely employees further down the line.


Would the ATO consider this as disguised employment or see this as a form of tax avoidance? Is there enough arms length?

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240 views
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Deb_ATO(Community Support)Community Support
8 Aug 2024

Hi @BlakeEng


It'll be very difficult to tell from what you've said if you'd be disguising employment.


If you choose a business structure that suits your circumstances and then you make sure you set it up correctly.

Establish business contracts correctly and know your obligations. You'd be good to go.


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Most helpful reply

Deb_ATO(Community Support)Community Support
8 Aug 2024

Hi @BlakeEng


It'll be very difficult to tell from what you've said if you'd be disguising employment.


If you choose a business structure that suits your circumstances and then you make sure you set it up correctly.

Establish business contracts correctly and know your obligations. You'd be good to go.


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Can I be employed by a company and subcontract to them at the same time? | ATO Community