@marty – I was told by an accountant that withholding as late (May, 2013) as possible is common practice. Having said that, you would get a lump sum Tax bill in May, 2013 of $50k for example then another $50k again due in June, 2013. Bit rough.
@luke – I bought my IP then went into contracting within 5 months. I asked to top up to renovate for $20k and got rejected even though I am getting double of what I was with full-time. They wanted more payments and Tax Assessment. If you’re looking at IP in 12 months then you should be ok. You might get a higher interest rate though.
Pty Ltd might be better as you’ll be paying yourself a constant amount each month like a full-time employee whereas agency will pay based on hours you do so it might fluctuate if you take time off. I think banks like to see consistency. If you’re not sure best to speak to your bank and see their criteria.
