In the present context, there is no such thing as a Sub Contrator Pilot/Instructor. I also do not see how or where "payment per flying hour" is condoned or permitted under the Award or any Australian industrial legislation.
If you are
remunerated,
directed and
tasked, then you are an employee in one form or another.
You may be casual (although I find that difficult to accept, considering the CAR and AOC obligations), in which case your entitlement is Award plus (from memory) around 23% as compensation for loss of sick, annual and long service leave. As a casual employee, you are also entitled to a minimum number of hours "call out" - check the Award.
You may be part time, in which case your entitlement is Award plus pro rate sick, annual and long service leave.
Or you may be full time, in which case your entitlement is Award plus sick, annual and long service leave.
If your salary exceeds $450 per month, you are also entitled to mandatory employer contribution superannuation.
Full time employment is 1,824 hours worked per year. CAO48 restricts flying hours to slightly less than half that total (900 hours per year). In practice, a high utilisation pilot will achieve at best, 750 to 800 flying hours per year. A Grade 3 cost (wages + leave accruals + super + workers compensation + uniforms etc) must be around $45,000 per annum; 700 hours flying = $65 per hour
at cost.
For a flying instructor, where the business recovers all costs within an hourly aircraft hire rate, and considering the constraints of CAO48, I would expect the instructor cost within that hourly aircraft hire rate would need to be
at least three to four times the instructor's hourly rate of pay, depending on instructor utilisation (i.e. ratio of flying hours to total work hours.)
$100 to $120 per flying hour for a Grade 3 Instructor would be about right?
Please do not come to PPRuNe and whine about being paid less than the Award or working under an employment agreement that is not in accordance with Australian industrial law. You can not contract out of your legal entitlements, your employer is acting unlawfully - and your complaints are
boring!
