I am a psychologist in private practice. The contract I worked under was a percentage split on a fee set per session by the clinic director, and later as a set fee per session completed. The contract was written clearly with the intent of representing me as an independent contractor with no rights to super and that I could - in theory - employ a locum to do the job if I so chose. However, on the ground in real time practice, there was a lot more exercise of control by the Director. I could - if I wanted - negotiate for a locum to do the work but there would be a lot of push back, they would need to be interviewed and approved, it would create a lot of drama, so would in reality likely never be done. Although we had a modicum of control over what hours we worked, this had to be seriously negotiated and if we wanted to reduce those hours there would be a lot of push back. Also, we had to apply for leave, and the director would try and indicate how many more days off we were allocated to have for the remainder of the year. We were able to conduct our therapy sessions as we saw fit behind closed doors, and could agree or refuse to take on a particular client - but if we refused and the director really wanted us to, then a bit of pressure would be brought to bear. I worked exclusively for that practice for a number of years and although I could technically work elsewhere if I chose for those days of the week I wasn't at my primary practice, if it was another private practice in the local area, it would have caused major problems. We were also expected to turn up to team meetings every few weeks outside of business hours, unpaid. I took the ATO calculator tool and I clicked on 'I am paid under a contract wholly or principally for my labour'. With all the other answers, it says I am entitled to be paid super. My question is as a psychologist working under a contract, am I contracted and paid for my labour? Thank you for any answers, but if you mention PSI, I have no idea what that means. Cheers.
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From ATO website for Independent Contractors
A contract may be considered ‘wholly or principally for labour’ if:
- you’re paid wholly or principally for your personal labour and skills
- you perform the contract work personally
- you’re paid for hours worked, rather than to achieve a result.
See link
Super from your employer | Australian Taxation Office (ato.gov.au)
All replies
From ATO website for Independent Contractors
A contract may be considered ‘wholly or principally for labour’ if:
- you’re paid wholly or principally for your personal labour and skills
- you perform the contract work personally
- you’re paid for hours worked, rather than to achieve a result.
See link
Super from your employer | Australian Taxation Office (ato.gov.au)
Hi Taxduck,
Thank you for your reply. In terms of your bullet points, I am paid to use my skills as a psychologist only, I did all the work personally, but in my contract it does allow for a locum, although this in practice would be seriously frowned upon and just wouldn't be viable or sustainable except in the instance of illness or travel that would take you away from doing the therapy yourself for a long period of time. Even then it would be absolutely expected for only one person to consistently do that locum work and they would need to be approved and managed by the Director.
I was only paid for sessions completed, not hours worked.
Thank again.
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