FREQUENTLY ASKED QUESTIONS ABOUT LOCUMING
What is locuming?
Essentially locuming is getting paid twice as much to do the same job. Traditionally locuming was seen as a way for hospitals to fill last minute unexpected vacancies. Nowadays, with the current shortage of doctors, hospitals are turning more and more to locums to fill longer positions. Doctors can get three, six, even 12 month locum contracts in many places. The short-term placements are still available for doctors who want a day, weekend or week here or there to earn a bit of extra cash.
With contract negotiations going poorly many junior doctors have taken matters into their own hands and have made a stand by choosing to go locuming. This will benefit the medical profession as a whole as hospitals and DHBs will be forced to rethink the way they are treating their salaried doctors which will lead to long-term improvements. Until that happens, locuming remains a fantastic option.
What are the benefits of locuming?
There are multiple benefits to locuming including superior remuneration, freedom, travel, new experiences and autonomy.
Superior remuneration: Locum doctors will earn between $75/hr to $270/hr. Higher paying jobs are usually found in areas of high need such as outback Australia.
Freedom and autonomy: As a locum you choose where and when you work. You can tailor your job to your lifestyle. You can choose to work a job living by the beach in Australia or you can choose to work two days a week in order to spend more time with your family. You are in control.
Travel and new experiences: Locuming is a fantastic way to get around New Zealand and Australia with someone else paying for it! It is also a great way to progress your medical growth by experiencing new cultures and learning to adapt quickly to these new experiences.
Career: Locuming is a fantastic way to gain experience in specialties that you choose. If you’re not 100% sure what career you want to pursue then use locuming to try a few different specialties out. It’s worth taking this time to ensure you end up in the right specialty to have a fulfilling career.
It sounds so good, what's the catch?
The main catch is the uncertainty associated with locuming. You do not have an employment agreement with the hospital and after whatever locum placement you are on there is no guarantee of continuing work. However, once a hospital has agreed to a certain contract with you, they are obliged to employ you for that period. A good locum agency will be in constant contact with the hospital and will keep you informed of your options, so if a change is required you will be best placed to benefit from it.
Will it cost me anything to use MedRecruit?
No. MedRecruit’s service is absolutely free to doctors.
Can I get long-term locum jobs or are they all short-term?
With the current shortage of doctors you can locum for as long or as short as you want. Hospitals are turning to locums to fill their permanent jobs. We have placed locums in jobs as short as four hours, to as long as one year.
Who pays for travel and accomodation when you're locuming?
Not you! With almost all locum placements the hospital will pay for your travel and accommodation.
Am I eligible to locum in New Zealand?
To locum it is useful to have general registration. It is still possible to locum with provisional general registration but there are Medical Council forms that need to be filled out and a new supervisor obtained.
Am I eligible to locum in Australia?
General registration is required in Australia. New Zealand graduates with general registration in New Zealand can easily obtain general registration in Australia providing certain conditions are met.
What are the differences between locuming in Australia and New Zealand?
Locuming in New Zealand and Australia are both great options. There are some key differences to know about to maximise benefits for you.
Job Confirmations: Australian hospitals are even more desperate for doctors than New Zealand and because of this are more willing to hire locums. Therefore, Australian hospitals confirm locums for positions many months in advance, whereas in New Zealand, hospitals tend to wait until closer to the job start date to hire and confirm locums, as they try to fill positions with permanent doctors first.
Australian hospitals are happy to confirm locum doctors for long-term, in some cases indefinite, placements. New Zealand hospitals tend to confirm locums for up to three month placements at a time. Often they will renew locum contracts after this three month period, but only for another three month period. However, for both countries it is important you register your interest for a locum position early to secure your place over another doctor to save disappointment.
Methods of payment: Another key difference between locuming in New Zealand and Australia is how you are paid. In NSW hospitals locums go on the payroll. They therefore pay tax as they earn. The benefit of this is it’s marginally simpler than earning gross and paying tax personally. In New Zealand and the rest of Australia, locums are paid gross and declare their tax at the end of the year. This involves a little more admin, but the benefit is you can claim a lot of expenses against your income and therefore pay less tax.
Registration: Another difference to practicing medicine in Australia is you need to be registered in the state you are working. They all have similar processes and a good recruitment agency will be able to help you with this process. In New Zealand medical registration covers the whole country.
Climate and Weather: The other big difference is that Australia is warmer and New Zealand has better skiing. The lifestyle differences may well be what really counts for you!
Will it negatively affect my career?
That depends on what career path you want to follow and what locum position you take. More and more consultants are not looking at locuming for junior doctors as a negative thing. They see it for what it is; a great way to gain experience and to travel whilst still progressing your medical career.
For people who are looking to specialise it pays to take the longer placements. These look the same as a normal salaried position on your CV.
For junior doctors it’s good for your career as it is the perfect way to try out different specialties before you specialise.
Does locuming count towards my medical progression?
Again, this depends on the locum placement you take. If you take lots of very short placements then this will not count towards the progression of your career. However if you take the longer placements, such a full quarter three month placements, there is no reason why this wouldn‘t count.
What are the tax implications of locuming?
As a locum you are a contractor. You can do this as a sole trader or you can set yourself up as a company. Either way you are paid a gross (i.e. before tax) salary which means you have to keep a record of what you earn as you will need to pay tax at the end of the tax year. The benefits of this are you can also claim back expenses against your salary. For more information about this please contact us and remember it is always advisable to talk to your accountant about these matters.
Do I need to be GST registered in New Zealand?
You must be GST registered if your annual turnover for this month and the last eleven months has exceeded $60,000 and your turnover for this month and the next eleven months is expected to exceed $60,000. Most locum doctors will earn this amount in 2-3 months.
Do I need to be GST registered in Australia?
In NSW locum doctors have to go onto the hospital payroll so it is not necessary to register for GST. If you are not going onto the payroll you must be GST registered if your annual turnover for this month and the last eleven months has exceeded $75,000 and your turnover for this month and the next eleven months is expected to exceed $75,000.
Am I eligible for KiwiSaver if I locum?
We are not allowed to give out financial advice, so all we can say here is what MedRecruit‘s managing director, Sam Hazledine, does. As a locum he decided the best way he could benefit from KiwiSaver was to contribute $20/wk which is the maximum that the government would match. This means Sam contributes $1,040 to his scheme and the government also contribute $1,040 to his scheme each year. He does this directly through his financial provider. Sam chooses the Medical Assurance Society.
I‘ve heard about ’salary packaging‘ in Australia. What is that?
Salary packaging is a fantastic Australian invention that will be offered at someof the hospitals we offer placements at, even if you are a locum (for placements greater than 3 month). Essentially it allows up to $9000 of income to be tax free if you can account for it with relevant receipts, of which paying off a credit card is one of them. Even if you are there for less than a year you can compress the full amount into the time you are there, thereby drastically reducing your tax bill.
As a New Zealand trained doctor can I locum in Australia?
Yes. If you have general registration in New Zealand it is a simple process to obtain registration in the relevant Australian state you want to work in. Please refer to our guide ’Registration in Australia’ for more information.
As an Australia trained doctor can I locum in New Zealand?
Yes. If you have general registration in Australia it is a simple process to obtain registration in New Zealand. Please refer to our guide ’Registration in New Zealand’ for more information.
As a UK trained doctor can I locum in New Zealand?
Yes. But it is not as easy as if you were a New Zealand or Australian trained doctor.
A UK trained doctor at RMO level can only gain provisional general registration. They need to complete 6 months in New Zealand with this provisional general registration before they can apply for general registration. Once they have general registration they can go locuming.
If a UK doctor is applying for work in New Zealand from the UK they will need to apply for a permanent salaried position. They need this job offer to obtain provisional registration. Once in New Zealand with provisional general registration, this can be transferred to hospitals that are employing locums and the doctor can work as a locum.
As a UK trained doctor can I locum in Australia?
UK doctors at RMO level can only enter Australia to work in a salaried hospital job. Once they have completed a year’s work as a doctor in Australia and gained general registration they can go locuming.
Will the agency take a cut out of my pay?
Some agencies do, but a good agency will not take a cut from your pay. MedRecruit will never take a cut from your pay so you can be sure you are getting the maximum hourly rate possible.
What are the keys to picking the right recruitment agency?
- The right agency will learn what is important to you
A good agency will be primarily interested in what you want. They will look to find out what is important to you so they can tailor a solution that fits with your goals. They will communicate with you on a regular and ongoing basis with information that is directly relevant TO YOU. You can tell if an agency is more interested in you by their initial communication, is it finding out what you want or is it trying to place you?
A poor agency will hammer you with options without finding out what you want. These agencies view you as a money making commodity rather than looking to how they can best serve you.
- The right agency has the ability to find work that suits your lifestyle
Australasia is massive and has over a thousand hospitals. A good agency has the ability to objectively match you with a location and job that suits your lifestyle.
There is no way any individual recruitment consultant can know the lifestyle opportunities at every hospital in order to best match a location to you. This needs to be done using a database.
When talking with recruitment agencies make sure they have a lifestyle profile for every hospital in their database. The agency should allow you to find jobs in their search engine using lifestyle criteria.
- The right agency will support you when you need it
When you are a locum it is important to know you are supported, not just while you’re in the hospital, but for the entire time you are on a placement. All sorts of things can pop up related to your job, your accommodation and your travel. A good agency will have that support available and will be there to help if needed.
The top agencies have 24hr free-phone service so you always know you’re not alone. In New Zealand you can call 0800 MEDRECRUIT and in Australia the number to call is 1800 MEDRECRUIT.
- The right agency will offer the additional services a locum requires
There are certain things that a locum doctor needs that a salaried doctor generally doesn’t. It is important that a locum agency acknowledges this and offers you solutions.
Recruitment agencies need to identify for locum doctors the need for assistance with tax and currency exchange. The tax is an obvious issue, but maximising the benefits for locum doctors who are moving large amounts of currency across the Tasman is something less obvious. Make sure your agency has developed a relationship with a currency trading company. This can give you better exchange rates than the banks and they’ll also advise you on the best time to move the money.
- The right agency will be run by doctors
It takes doctors to truly understand doctors’ needs. In order to be able to effectively serve doctors, an agency needs to be run by doctors.
The best agencies are established and run by doctors so they understand doctors’ needs.
- The right agency will reward you well
Doctors deserve to be rewarded for what they do. A good agency will acknowledge this and will take action to reward their doctors well.
The best agencies will offer a bonus system in order to reward doctors fairly for what they do.