Bookkeeping & Payroll for Service Businesses

The Miscellaneous Award 2020 acts as a safety net for employees who aren't covered by any other modern award and aren't traditionally award-free. Importantly, it doesn't apply where a more specific industry or occupation award already covers the work, and it generally doesn't cover managerial or professional roles that have historically sat outside the award system. So some of your team may be on the Miscellaneous Award, some on a more specific award, and some award-free. The right first step is checking each role's coverage rather than assuming the whole business is one or the other.

It depends on the work. Much commercial and contract cleaning falls under the Cleaning Services Award rather than the Miscellaneous Award, because the Miscellaneous Award doesn't apply where a more specific award covers the role. But the position can vary depending on exactly what your staff do and the context they work in. Because the awards set different rates, allowances and conditions, it's worth confirming coverage for your actual roles rather than assuming—getting it wrong can mean systematic underpayment across the team.

Casual employees are generally paid a casual loading (commonly 25% under many awards) on top of the base hourly rate, to compensate for not getting paid leave. The exact loading, minimum engagement periods and overtime rules come from the relevant award, so they need to be applied per the award your staff are actually covered by. Casuals also have a pathway to request conversion to permanent employment after qualifying, under the casual conversion rules. We set payroll up so the correct loading and conditions apply automatically.

Under most awards, travel to the first job of the day and home from the last is treated differently from travel between jobs during the day, and vehicle or expense allowances may apply when staff use their own car or tools. The exact rules depend on the award covering the role, so it's important to apply the right one and to document your arrangements. Keeping clear records of travel and allowances paid protects you if pay is ever queried. We help set consistent rules so this isn't decided job by job.

Sometimes. Under superannuation guarantee rules, a contractor engaged wholly or principally for their labour can be treated as an employee for super purposes—even if they have an ABN and send invoices. So a subcontractor who mainly provides their own labour may be entitled to super at the current rate of 12% of ordinary time earnings. Because misjudging this can lead to back-paid super and ATO charges, contractor arrangements are best reviewed individually rather than assumed to be super-free.

It comes down to the real nature of the relationship, not just whether someone has an ABN. An employee usually works under your direction, is paid for time, accrues leave and has tax withheld; a genuine contractor runs their own business, can delegate, carries commercial risk and invoices for the work. A worker who effectively works only for you under your control may be an employee in substance, which affects PAYG, super and payroll tax. Where it's unclear, it's worth getting advice before treating someone as a contractor to avoid sham-contracting risk.

By costing each job—comparing what you charge against the labour, travel and materials it really consumes—rather than judging the business on revenue alone. That shows your true margin per job and per client, highlights work that looks busy but barely pays, and helps you price the next quote properly. Many service businesses are busy without being as profitable as they could be because losing jobs hide inside the average. We keep job-level costs visible so you can focus on the work that's genuinely worth doing.

In almost all cases, yes. Most Australian states and territories require workers' compensation insurance once you employ staff—through WorkCover in NSW, WorkSafe in Victoria, WorkCover Queensland, WorkCover WA and the equivalent schemes elsewhere. Thresholds and exact rules vary by state, and sole traders or genuine contractors may be treated differently. Not holding cover when it's required can lead to significant penalties and personal exposure if a worker is injured, so it's worth confirming your obligations in each state you operate in.