You’ve been at the same clinic for a few years. The patient list is steady, the team knows you, and the roster rarely changes. Then a GP colleague mentions what she earned on a three-month locum role in Victoria, and you start doing the sums. Is the extra money worth it? What happens to your super? Could you actually take six weeks off in winter?
The locum GP vs permanent GP question has no quick answer because pay, tax, flexibility and lifestyle all pull in different directions. Here’s how each one plays out.
Locum GP vs Permanent GP Pay
Locum GPs may be paid an hourly rate, a percentage of billings or an agreed amount for a short-term assignment. GPs in permanent positions may receive a salary or work under a percentage-of-billings arrangement, sometimes with an initial income guarantee.
So, what do locums actually earn?
Advertised positions offer some insight. An aged care locum listing quotes $180 to $275 an hour, depending on location. Another GP position offers 80% of billings or $250 an hour, whichever is higher.
These advertised rates offer a glimpse of what some locum GP positions pay in Australia. Actual earnings vary depending on location, experience, patient demand, contract duration and the type of practice. They should not be treated as the average locum GP hourly rate in Australia.
Regional and rural practices may offer higher rates to attract doctors, particularly when they need temporary coverage. This is an important consideration when comparing locum GP pay Australia opportunities across different locations.
Here’s where things get interesting. A higher hourly rate doesn’t automatically mean a higher annual income. Locums may have gaps between assignments, and paid leave entitlements depend on their employment arrangements. Some may also need to cover travel, accommodation or professional expenses.
When you compare locum GP vs permanent GP earnings over a full year, it makes sense to look beyond the advertised rate and consider working days, patient demand, expenses and the terms of each contract.
Locum GP vs Permanent GP Work Flexibility
Flexibility is one of the biggest reasons GPs consider locum work. You can look for assignments that suit your availability, preferred locations and contract duration. Some opportunities involve short periods of leave cover, while others run for several weeks or months.
Between assignments, you may choose to take a break, spend time with family or explore opportunities in another practice. You also get to experience different clinical environments without necessarily committing to one location long term.
The catch is continuity.
Locum assignments depend on practice requirements and availability. Work may not always be available exactly when or where you want it. This means planning ahead, especially if you rely on locum assignments as your main source of income.
Permanent roles offer a different kind of flexibility. You may have a predictable consulting schedule, regular patients, predictable monthly salary, and an established practice environment. That doesn’t necessarily mean working five days a week. Many ongoing GP positions offer opportunities to negotiate part-time hours, preferred consulting days or other flexible arrangements, depending on the practice.
If you’re weighing locum GP vs salaried GP opportunities, ask about the actual working arrangements before making a decision. Contract duration, expected consulting hours, leave arrangements and notice requirements can make a considerable difference to your day-to-day working life.
Locum GP vs Permanent GP Tax
This is one area where it’s worth paying close attention to the details.
Your tax obligations depend on your actual working arrangement, not simply whether your position is described as locum or permanent. Some permanent GPs work as employees, while others operate as independent contractors. This distinction can affect how income tax is managed, whether tax is withheld from payments and who is responsible for superannuation contributions.
According to the Australian Taxation Office (ATO), employers generally need to withhold PAYG tax from payments made to employees.
Independent contractors generally manage their own income tax obligations, although withholding may apply under certain arrangements. Depending on their circumstances, they may also be required to make PAYG instalment payments throughout the year. Holding an ABN does not automatically mean a GP is an independent contractor. The actual terms and nature of the working relationship matter.
Superannuation is another important consideration.
Even if you’re working as an independent contractor with an ABN, the practice or organisation engaging you may still be required to make super contributions if your contract is mainly for your personal labour and skills and meets the relevant legal criteria.
Before accepting a locum assignment, clarify how superannuation is handled and whether the advertised remuneration includes any applicable super contributions.
The key point in the locum GP vs permanent GP tax comparison is that neither arrangement automatically offers better tax treatment. Your obligations depend on how you work, how you’re paid and the applicable tax rules.
Locum GP vs Permanent GP Lifestyle
Locum work can feel like a different career.
You might spend a few weeks working in a coastal town, take an assignment in a regional community or experience the pace of a busy metropolitan practice. For GPs who enjoy variety, this can be an appealing way to build professional experience while exploring different parts of Australia.
You may also have more freedom to plan breaks between contracts, spend time with family or arrange work around personal commitments.
That freedom is one of the benefits of locum GP work, but it comes with extra planning.
Travelling between assignments, arranging accommodation, learning unfamiliar practice systems and adjusting to different clinical teams can take time. Some GPs enjoy that variety. Others prefer the familiarity of one workplace.
Permanent roles offer something different.
You get to build lasting relationships with patients, work alongside colleagues you know well and become part of an established clinical team. Following patients over several years can also bring professional satisfaction, particularly when managing ongoing health conditions.
And then there’s life outside the clinic. If you have children in school, family commitments or a preference for staying in one location, an ongoing position may make everyday planning easier. On the other hand, if you want extended breaks, enjoy travelling or prefer changing work environments, locum assignments may suit your lifestyle.
Career priorities can change, too. A GP who prefers the stability of an ongoing role today may consider locum assignments later. Another GP might enjoy locum work for a few years before settling into a long-term practice.
Neither choice is automatically better. It comes down to the kind of working life you want and the commitments you need to balance.
Let’s Find the Right Fit for Your GP Career
Okay, if you value routine, long-term patient relationships and a familiar practice environment, a permanent role may suit you better. If you prefer choosing assignments, exploring different locations and planning breaks between contracts, locum work deserves serious consideration.
The answer to the locum GP vs permanent GP debate ultimately depends on your career goals, financial expectations and lifestyle priorities.
At Ray Rekruiters, we connect GPs with vetted permanent and locum GP roles across Australia. Through our wide network of clinic and medical practice partnerships, we help you explore roles that align with your preferred location, earning expectations, availability and career goals.
Already looking for your next locum assignment? Or thinking about moving into a permanent GP position? Our recruitment team is right here to help you explore your options.
Explore permanent and locum GP jobs in Australia with Ray Rekruiters and let’s find a role that works for you.
Locum GP roles may offer higher hourly or daily rates, but total annual earnings depend on assignment availability, billings, unpaid breaks, travel costs and superannuation. Compare the full-year income and expenses before deciding.
Locum GPs work on temporary assignments with opportunities to choose different locations and contract durations. Permanent GPs generally have ongoing roles, offering greater continuity with patients, established teams and potentially more predictable income.
Superannuation and paid leave depend on the GP’s employment arrangement and contract. Eligible employees receive applicable entitlements, and some independent contractors may also qualify for superannuation contributions. Always confirm the terms before accepting a role.
