Thriving in the ‘Gig’ Economy

By Jarryd Thraves, Financial Advisor

If you’re a freelancer or contractor or maybe even a consultant then you’re part of the “gig economy”. Gone is the job for life, or even a job in the normal, employed meaning of the word. For you, work consists of short-term contracts or a series of one-off jobs. “Gigs” as the band down at the pub might put it.

For some, gig work is a liberating choice that allows them to work their own hours, holiday when they like and work wherever they wish. For others, it’s a necessity in a weak job market where under-employment and age discrimination is rife, and more companies choose to outsource specific tasks. Key to the gig economy is technology, be it an Uber app, Skype, crowdsourcing sites or just email and the Web.

A study found that 4.1 million Australians had freelanced in 2014/15, and it’s a trend more likely to grow than diminish.

So if you’re a “gig worker” what can you do to make the most of your situation?

It’s business

If you’re happy picking up the odd jobs that fall into your lap for a little extra money, that’s fine. But if you are looking to earn a full-time income then you’re in business and need to operate accordingly.

To begin with, you need to know:

  • Who your potential clients are;
  • How to reach out to them;
  • How to gain referrals;
  • The processes you have to put into place to track your work, issue invoices, and make sure you get paid on time;
  • How to meet your tax obligations.

Protect yourself

Depending on the work you do and the requirements of your clients you may need a range of insurances:

  • Professional indemnity insurance – if there’s any chance a client could sue you in relation to the work you are engaged to complete.
  • Public liability insurance – in case your work activities cause injury to a member of the public.
  • Income protection insurance – you may be eligible for workers’ compensation insurance, but the rules vary from state to state, depending on your business structure, and only cover work-related injuries. Income protection insurance will also cover you against illness and non-work-related injuries.
  • Life insurance – if you have dependents but little in the way of net assets.

Think long term

Can you build your business into something you can sell? If not, how will you fund your retirement? As a gig worker you’re unlikely to receive compulsory superannuation contributions, but you can (and should) make your own contributions. Personal contributions are tax deductible up to the annual concessional cap of $25,000.

Get advice

All state and territory governments have departments of business that offer a wealth of information and support for small businesses. Check out the help available in your state.

And contact a financial adviser. Aside from being able to look at your insurance, savings and super needs, your adviser may be an experienced small business operator, a potential mentor, and a valuable member of your network.

Jarryd Thraves is an authorised representative and credit representative of AMP Financial Planning. Blueprint Planning Pty Ltd (ABN78 097 264 554), trading as Blueprint Wealth, is an Authorised Representative and Credit Representative of AMP Financial Planning Pty Limited, Australian Financial Services Licensee and Australian Credit Licensee 232 706.

This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.

If you decide to purchase or vary a financial product, your financial adviser, AMP Financial Planning and other companies within the AMP Group may receive fees and other benefits. The fees will be a dollar amount and/or a percentage of either the premium you pay or the value of your investment. Please contact us if you want more information. 


  1. a) Not for publication (for compliance purposes)

Gig economy:

  1. b) For publication (for readers’ information)

The Emergence of the Gig Economy (August 2016) Ai Group: