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Locum Agencies in Australia: How They Work for Doctors

Who actually pays the agency, how your pay is structured, the paperwork every agency asks for, and what to check before you accept a shift. For the tax side, see the locum work guide; to compare pay structures, use the locum pay calculator.

Agencies at a glance

What they do: match you to vacancies, run your credentialing, confirm the booking with the hospital, and handle payment, plus travel and accommodation where the placement includes them.
Who pays them: the hospital or practice engaging you. Under the usual arrangement the rate quoted to you is yours in full.
Your pay route: agency payroll (PAYG casual) or your own ABN invoice, and the difference matters for tax, super and GST.
Registering with several: normal, and usually sensible, because each agency holds different contracts.

What an agency actually does

An agency sits between hospitals with roster gaps and doctors willing to fill them. On your side, that looks like a consultant who sends you vacancies matching your grade and availability, collects and verifies your compliance documents, confirms the booking, and chases payment. On the hospital's side, the agency supplies pre-credentialed doctors at short notice under a contract the hospital has already signed.

The service is genuinely useful, and it is not free: the hospital pays the agency a fee for every filled shift. That has two practical consequences for you. Hospitals sometimes prefer doctors who approach them directly because it costs less, which is why direct arrangements with a hospital you already know remain worth exploring alongside agencies. And the agency's quoted rate is a negotiation position, not a law of nature: for hard-to-fill shifts, asking for more is routine and sometimes works.

How you get paid through an agency

Agencies structure payment one of two ways, and you should know which before your first shift:

Structure	How it works	What it means for you
Agency payroll (PAYG)	You are a casual employee of the agency for the placement. Tax is withheld, super is paid on top, payslips issued.	No ABN needed, less admin, but the headline rate should be read alongside super and casual loading treatment.
ABN contractor	You invoice the agency or hospital and receive the gross rate with nothing withheld.	You handle your own tax set-asides, super and possibly GST once your locum turnover passes the threshold. The locum work guide covers all three, and the locum pay calculator compares the two structures on your numbers.

The same agency can run different structures for different placements. Ask per booking, not per agency.

The credentialing pack

Every agency asks for broadly the same compliance set, so build it once and keep it current in one folder. Expect to provide:

AHPRA registration details and CV
Photo ID and right-to-work evidence
National police check, and a working-with-children check for placements that need one
Immunisation and serology records
Professional references, usually recent and from supervising clinicians
Qualification certificates, and for some placements evidence of specific competencies or courses

Checks expire on their own timetables, and an expired document is the most common reason a shift falls through late. Recheck the folder before each new registration.

Using more than one agency

Nothing stops you registering with several agencies, and most doctors doing regular locum work do. Different agencies hold different hospital contracts, so each registration widens the set of shifts you see, and the same vacancy can reach you through more than one agency at different rates.

The one discipline this requires is tracking who has submitted you where. A hospital will not engage the same doctor through two agencies, and if two have both put you forward, the resulting representation dispute is slow and tends to freeze your booking while it resolves. Before an agency submits you anywhere, ask them to confirm the hospital with you first, and keep your own list.

What to ask before accepting a shift

Ask	Why it matters
Am I paid PAYG or on my ABN for this placement?	Changes your tax set-asides, super and GST position entirely.
What exactly does the rate include?	Travel time, mileage, accommodation and meals are sometimes included, sometimes extra, sometimes yours to fund.
What classification does the rate assume?	The rate should match the level you will actually work at, not a lower one.
Who covers indemnity for this engagement?	Public placements are commonly covered by the state's arrangements; private and GP placements usually need your own policy to cover locum work. Get the answer in writing.
When am I paid, and what is the cancellation position?	Payment timing varies, and cancellation terms should cut both ways: what you owe if you pull out, and what you are paid if the hospital cancels late.

Terms worth reading twice

Exclusivity or restraint clauses: anything limiting you from working for a client hospital directly, or through another agency, for a period after a placement.
Deductions: the usual arrangement is that the hospital pays the agency's fee, so query any clause that takes costs out of your rate.
Cancellation: both directions, with notice periods and any minimum payment if a confirmed shift is cancelled late.
Payment terms: how long after the shift, and whether payment waits on the hospital paying the agency.

These pages describe how agency arrangements commonly work; the agreement you sign governs your placement. This is general information, not legal or financial advice.

FAQ

Do I pay a locum agency anything?

Under the usual arrangement, no. The hospital or practice engaging you pays the agency its fee, and the rate the agency quotes you is the rate you invoice or are paid. Read the terms you sign, though: they, not the usual arrangement, govern your placement, so check that no deductions from your rate are listed.

Should I register with more than one locum agency?

It is normal and usually sensible. Different agencies hold different contracts, so more registrations means seeing more of the market, and the same vacancy can be offered through more than one agency at different rates. Keep track of which agency has submitted you where: hospitals will not accept the same doctor from two agencies, and representation disputes are the most common friction.

Am I paid PAYG or through an ABN when I work via an agency?

Either, depending on how the agency structures the placement. Some run you through their payroll as a casual employee with tax withheld and super paid; others have you invoice as an ABN contractor and pay the gross rate with nothing withheld. Ask explicitly before your first shift, because your tax set-asides, super and GST position all change with the answer.

Who covers my indemnity on an agency locum shift?

It depends on the engagement. In a public hospital you are commonly covered by the state's indemnity arrangements for the work you do as part of that engagement, while private and general-practice locums usually need their own medical indemnity insurance that covers locum work at that location. Confirm in writing which applies before the shift, and tell your insurer about locum work either way.

Sources & scope

This page describes common agency mechanics rather than any agency's terms, and quotes no rates: locum rates are negotiated per placement and published nowhere reliable. For the tax, ABN, GST and take-home mechanics, every figure lives on the locum work guide with its sources.