Verdict
Sole traders earn more. Labour-hire is simpler but lower pay. Most flexible workers start sole trader, then scale to labour-hire if they want simplicity.
NDIS Comparison
ABN Sole Trader vs Labour-Hire Arrangement
Sole traders earn more. Labour-hire is simpler but lower pay. Most flexible workers start sole trader, then scale to labour-hire if they want simplicity.
ABN Sole Trader
Best for: Support workers wanting independence and business control
Pros
- Higher take-home pay ($45-$70/hr)
- Full independence and control
- Can invoice multiple providers
- Build own business reputation
- Flexible booking across multiple clients
Cons
- Own ABN registration and compliance burden
- Own tax return (or accountant cost $200-$800)
- Own insurance cost ($400-$1,000/yr)
- Inconsistent income between invoicing and payment
Labour-Hire Arrangement
Best for: Support workers wanting simplicity and not to manage own ABN/tax
Pros
- Simplified invoicing (host provider manages)
- Host provider covers insurance
- No tax/ABN burden (host provider handles)
- Consistent wage payments
- Less administrative work
Cons
- Lower take-home pay (usually $34-$40/hr)
- No business ownership
- Less control over booking and scheduling
- Dependent on host provider remaining registered