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  • Working

    When you start working you need to work out if you're an employee or contractor. If you are an Australian resident for tax purposes and leave to work overseas you may need to declare foreign income.

    Being an employee is different from being a contractor. If you're a contractor, you're self-employed and you're running your own business. You will need to register for an ABN, you may also need to register for tax roles such as GST.

    If you're an employee, you're working in another person's business. You should apply for a TFN to ensure tax is withheld from your pay at the right rate.

    Whether you’re a contractor or an employee could change for each job you do.

    You could miss out on things like sick leave, holiday pay, super and work cover if the business you work for classifies you as a contractor when you should be an employee.

    If you are working as an apprentice, labourer or trainee you will always be an employee for tax and super purposes.

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    Last modified: 20 May 2021QC 27102