The popular belief that "going ABN pays more" is usually false once you compare the same locum work like-for-like. A PAYG rate has 12% super paid on top plus (often) paid leave; an ABN rate has to fund super, leave, your own indemnity and admin out of the headline figure — and both are taxed at the same marginal rates. This tool adds those costs back so you compare total value, not headline rate.
| At your rate, per year | PAYG employee | ABN sole trader |
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Both sides use the same headline rate and the same FY2026–27 marginal tax + 2% Medicare levy — there is no lower "contractor rate" for a solo locum (PSI). Super is treated as retirement value on both sides: paid on top for PAYG, self-funded from the rate for ABN (unless s12(3) applies). Indemnity and admin are deducted on the ABN side and treated as employer-covered on the PAYG side.
Usually not, once you compare like-for-like. A PAYG rate has 12% super paid on top and often paid leave; an ABN rate has to fund super, leave, your own indemnity and admin out of the headline figure. Both are taxed at the same personal marginal rates — there is no lower contractor tax rate for a solo locum. After you add super, leave and your own costs back in, PAYG and ABN usually land close together. ABN buys flexibility and control, not a tax windfall.
No. Under section 12(3) of the Superannuation Guarantee (Administration) Act 1992, a contract that is wholly or principally for your personal labour makes the payer liable to pay 12% super — even though you hold an ABN and invoice. A solo locum engaged to personally provide clinical services usually fits this test, so many ABN locums are in fact owed super by the hospital, agency or medical centre anyway. Don't assume ABN means no super; check whether it is being paid, and whether a 'super-inclusive' rate is really pay.
Almost never as a solo locum. Your income is Personal Services Income (PSI): it is attributed back to you and taxed at your marginal rates whatever entity you invoice through. You generally cannot leave clinical profit in a company at the company tax rate, cannot split income to a lower-taxed spouse or family entity, and your deductions are broadly limited to what an employee could claim. The company-and-trust tax planning other business owners use largely does not work for a solo locum.
Usually not on the clinical service itself — most medical services are GST-free, and supplies to public hospitals and Medicare-benefit work are covered by specific carve-outs. But the $75,000 registration threshold is measured on your total turnover including GST-free supplies, so a busy locum often still has to register (mainly to claim input tax credits and lodge a BAS). The main case where GST is genuinely charged is billing a private medical centre under a service-fee arrangement. Get your specific arrangement checked.