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How to Pay Contractors in Australia

4 min read

Looking for skilled contractors who are capable of contributing to your projects at a high level? Look no further than the land down under! Australia is home to a talented workforce that’s both broad and deep, ready to bring their skills to the needs of labor-strapped companies across the world. And while you’ll likely pay more for the services of these high-caliber professionals, you can expect exceedingly good quality for your dollar. It’s a good segue into an important question: how do you pay contractors in Australia?

Australia is half a world away for many companies, and paying Aussie contractors can exacerbate that notion. Thankfully, there are more than a few ways to transfer money into the accounts of these contractors, to pay them for the work they’re doing for your company. 

If you’re contracting Australian freelancers or working with skilled Aussie contractors, here’s what you need to know about paying them. 

Why hire contractors in Australia?

Australia is another predominately English-speaking country with a developed economy, which immediately makes it a draw for companies in the United States prospecting contractors abroad. There aren’t any language barriers to overcome and there are general similarities in work culture and habits. Aussie contractors tend to be a good fit from the get-go.

As mentioned, Australian contractors are also highly educated and well-trained. Australia has a robust economy of skilled workers ready to offer their services in everything from graphic design and marketing, to engineering and consulting, and beyond. These individuals have access to renowned universities and post-secondary education, allowing them to achieve masteries only found in other developed countries. 

An often-overlooked benefit of working with Australian contractors is the time zone difference. Your Aussie counterparts are literally living in the future, and they’re working an opposite day shift, which can mean running a round-the-clock team. Send work off to contractors at the end of the day and have results waiting for you in the morning!

Currency and transfer considerations

If there’s one downside to working with Australian contractors, it’s that they come at a steep premium. The average cost of living in Australia is among the highest in developed nations, which means talent comes at higher prices. This is further evidenced by the currency exchange rate.

The United States Dollar (USD) has about 70% of the purchasing power of the Australian Dollar (AUD). As a result, you’ll end up paying not only more of a premium to contract these individuals, but also the cost of currency exchange, which can drive the price higher. 

Ways to pay contractors in Australia

If you’ve hired on an Aussie contractor, you’ll need to make sure they get paid accordingly. How often you’re paying them, how much and their preferred mode of payment all matter. Many times, it comes down to the individual situation. Here are some of the most common payment options for sending money to international contractors working out of Australia:

  • Wire transfer. Fast, secure and great for large sums of money, wire transfers are what most businesses turn to when paying contractors abroad. The downside? They’re very expensive. This has made them largely prohibitive for recurring payments. 
  • Check or money order. In today’s day and age, checks and money orders just aren’t applicable anymore. These paper modes of payment take too long and are too easily lost, stolen or destroyed. When paying Aussie contractors, find a better way. 
  • Bank transfer. Bank transfers are convenient, but come with a few obstacles that can make them prohibitive. For starters, currency exchange through banks can be costly. Moreover, there’s always a chance your transaction could be stalled by the bank. 
  • Digital payments. With the ability to track funds in transit, designate landed currency and see exchange rates, digital payments have become one of the most popular payment options for companies looking for security, convenience and accessibility. 

While the situation will dictate the preferred mode of payment, it’s safe to say that most companies will opt for modern, digital modes of payment. Australian contractors have the means, savvy and technology at their disposal to make sure of these methods—whether they come through a banking institution or through a digital payments platform. 

The best way to pay independent contractors in Australia

What’s the best way to pay Australian contractors? It comes down to what works best for the contractor and the company seeking their services. A payment method that’s simple and reliable for both sides is an asset in developing and maintaining a good working relationship. The business will continue to get the high-caliber work it’s seeking from an Aussie contractor and the contractor will get the income they’ve earned.

Looking for a simple solution for how to pay contractors in Australia? Look no further than Veem and see why digital payments are fast-becoming the de-facto way to pay contractors all over the world.

 

 

* This blog provides general information and discussion about global business payments and related subjects. The content provided in this blog ("Content”), should not be construed as and is not intended to constitute financial, legal or tax advice. You should seek the advice of professionals prior to acting upon any information contained in the Content. All Content is provided strictly “as is” and we make no warranty or representation of any kind regarding the Content.