Hello I am a full time contractor placed at an organisation (been here 1.5 years on rolling 1 year contracts) by an agency. I submit timesheets to agency, the agency pays me. I had an option to be a business and arrange my own affairs or pay 2.5% to agency to take care of this. I took the latter option at the time, therefore the agency pays my tax and superannuation, etc...Is this fee of 2.5% deductible against my personal tax? I can't find any info on this on ATO site anywhere. Should I have taken option A? Its very likely to go for another calendar year next year also. I looked at the benefits of a company. One of the main pros was a flat tax rate of 30%. When I look at my group certificate the tax paid is 29% of my gross. Am I looking at correctly? Or do I need to add 9% on what I am calling my gross for super? Thank you for your time.