• How to report a business incorrectly treating employees as contractors

    If you know or suspect a business is incorrectly treating an employee as a contractor it is important you let us know.

    Businesses that incorrectly treat employees as contractors can often undercut their competitors and obtain an unfair competitive advantage. These businesses illegally lower their labour costs by not meeting all their tax, super and other government obligations for their workers.

    Workers being incorrectly treated as contractors can also miss out on their employee rights and entitlements.

    Report a business

    You can report a business that is incorrectly treating an employee as a contractor through our Tax Evasion Reporting Centre. You can report the business to us confidentially by phone, online, fax or letter.

    You are under no obligation to provide your name when giving us information. However, if you give your name and a contact number, it allows us to ask you for more information later if necessary.

    Information we need

    Details of the business

    We need to be able to identify the business that is incorrectly treating an employee as a contractor. Provide as much of the following detail as possible:

    • business name
    • Australian business number (ABN) or Australian company number (ACN)
    • industry the business works in
    • address of where the business is located
    • business's phone number.

    Details about the situation

    Tell us about why you think the worker is an employee and not a contractor. For example, if:

    • the business requested or pressured the worker into obtaining an ABN for the job even though they were not entitled
    • you have used the Employee/contractor decision tool and it gave an 'employee' result
    • the type of work performed is usually done by an employee, not a contractor - information you could provide about this may include  
      • payment, for example, the worker is paid for the time they work
      • working hours, for example, the worker has rostered or set hours
      • the business's level of control over the work completed, for example, the business tells the worker how the work needs to be completed
      • location, for example, the worker must complete their work at the business's premises or on-site at a location the business specifies
      • tools and equipment, for example, the business provides all or the majority of the tools and equipment to complete the work.

    If a business is incorrectly treating an employee as a contractor they may be avoiding some or all of their tax and super obligations. If possible, tell us about whether the business has:

    • withheld any tax from payments made to the worker
    • paid any super for the worker.

    More information

    Making a report to the Tax Evasion Reporting Centre

    Find out more

    How to report

    End of find out more

    Employee or contractor

    Work it out

    Employee/contractor decision tool

    End of work it out

    ABN entitlement

    Work it out

    ABN entitlementExternal Link

    End of work it out

    Employer obligations

    Find out more

    Employers

    End of find out more
      Last modified: 09 Jan 2015QC 26277