You negotiate pay rates with NDIS Participants (within the NDIS price limits)

As an independent support worker, you set and negotiate your own rates (within the NDIS price limits). This usually means you can earn a higher hourly rate as an employee working for a provider.

You choose who you work with

Employees are rostered by their employer, who decides your shifts and which participants you support. As an independent worker, you cut out the middleman and choose your own clients, hours and schedule!

You manage your own taxes

This is one of the biggest traps for new independent workers. The money that lands in your bank account is not all yours to spend. A portion of every payment needs to be set aside for tax.

This point is so important that I have written a story to illustrate!

Case Study:

Bill is an independent support worker. He’s reliable, works most weekends, and averages over 35 hours per week.

Over the year, Bill earns around $140,000 which has been plonked straight into his bank account. Happy days! For now…

Bill spends this money freely on holidays and expensive clothes without putting any thought to the end of year tax bill.

Come the end of the year and Bill remembers that tax exists! He contacts an accountant in the hopes that they will wave their “magic tax wand” to make any tax payable vanish. Unfortunately, this is not how it works.

Because Bill has not paid a cent of tax during the year, he now owes around $33,000!!

If Bill were an employee, tax would have been withheld automatically by his employer. As a sole trader, its entirely his responsibility.

Because bill didn’t plan for this, he doesn’t have the cash to pay the bill. This forces him to enter into an ATO payment plan and now he has to pay interest.

You Take on all the Risk

When you work independently, you are the business! That means:

• You prepare and send your own invoices.
• If an invoice is incorrect, disputed, or the participant has run out of funding, you must resolve it.
• You need to organise your own roster and how your business is run.
• You need to understand and arrange your own insurances.

I don’t say all this to scare you, but to prepare you. If you are prepared you won’t have anything to fear!

Which Choice is best for you?

Employee:

This option is best for workers who want stability, more predictable income and minimal admin. Your earning potential is lower, but your pay is consistent and your employer handles tax, super, insurance and compliance.

Independent:

Best for workers who value higher earning potential, more control and flexibility. While it has its benefits, the trade off is you take on more risk and administrative responsibilities.