• What to do if a worker wants to be a contractor

    Sometimes a worker may ask to be engaged as a contractor.

    If you think the working relationship is employment, you should check the arrangement using our Employee/contractor decision tool.

    Pressure to incorrectly treat employees as contractors

    If your business accepts an invalid contracting arrangement, you may face penalties and other charges for failing to comply with your obligations. Don't agree to break the law. Use our Employee/contractor decision tool and show the worker the result.

    Paying super to contractors

    If you pay contractors under a contract that is wholly or principally for their labour, you have a legal obligation to pay super contributions for them into a complying fund.

    Your business cannot contract away its legal obligations to pay super even if the contractor agrees.

    Giving contractors employment conditions

    Sometimes workers who request to be engaged as contractors also request conditions that only apply to employment, such as the ability to salary sacrifice or to be paid tax-free living away from home allowances.

    Access to these conditions is a clear sign that the underlying arrangement is employment, not contracting.

    Last modified: 06 Jan 2017QC 26276