Building and construction tradies – tax essentials

You're an employee if:

• you work in a business
• you're paid in salary or wages.

For more information see Employee tradies.

Generally, a business involves a set of continuous and repeated activities you do for the purpose of making a profit. If you're unsure, check whether you are in business.

In addition, you're running a business as a tradie if you're:

• an independent contractor, sub-contractor or ‘subbie’ working for a head contractor
• operating as a sole trader, company, trust or partnership.

  You might do one or more of the following:

• supply services to private customers or other businesses
• work as an independent contractor for other tradie businesses.

For more information see Business or independent contractor tradies.

Understand the difference between being an employee or independent contractor as it affects your tax, super and other obligations.

You may be both an employee and run your own business in the same financial year. For example you:

• run your own business, and you're an employee of that business, or another business
• work as an independent contractor some of the time, and at other times work as an employee of someone else's business.

You'll need to look at the information in both Employee tradies and Business or independent contractor tradies to find the relevant information for your situation.

If you employ or hire workers, you'll have additional obligations.