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  • Paid to produce a specific result

    To meet the first condition of the results test, you must produce a specific result or outcome before being paid.

    Note: If you're paid on an hourly basis or daily rate for the services you provide, it's unlikely that you will meet the first condition of the results test. This is because these payments are not generally linked to producing a specific result or outcome.

    Generally, you are paid to produce a specific result when:

    • outcomes and costs are agreed with the client prior to commencing the work
    • payment is only on completion of each job or specific objectives (this can include receiving progress payments and deposits)
    • being paid an amount per completed item or activity – for example, a furniture upholstering business that is contracted to a furniture factory and paid per lounge suite completed.

    Generally, you are not paid to produce a specific result if you are paid:

    • after submitting timesheets
    • regardless of achieving a specific outcome or reaching agreed objectives.


    Joseph provides services to a local authority through his company JoCo, which has entered into a contract with the local authority. Joseph:

    • receives regular direction that describes the type of work to be completed
    • works 40 hours per week, and
    • is paid fortnightly based on an hourly rate.

    The termination clause, states that the contract can be ended for any reason by either party giving four weeks' notice. JoCo can issue an invoice and be paid for the services provided up to the end date.

    The contract does not meet the first condition of the results test because JoCo:

    • isn't contracted to complete a specific job
    • isn't paid on the condition that the job is completed, and
    • is paid for time worked rather than the results produced.
    End of example

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    Last modified: 30 Mar 2017QC 46008