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Working as an independent contractor

Check if you're an independent contractor or employee and if you need to register for an ABN or certain tax roles.

Last updated 10 June 2024

What you need to know

It's essential to find out what your tax and super obligations will be when you start work as an independent contractor. Knowing these obligations from the start can save you time, money and stress later on.

As an independent contractor, you can be:

  • an individual (sole trader) or
  • working in your own company, partnership, or trust.

You might call yourself an independent contractor, sub-contractor or a 'subbie'.

As an independent contractor, you're starting or running your own business, therefore you:

If you're an independent contractor in the building and construction industry, you must also lodge a taxable payments annual report (TPAR).

Check if you are an employee or independent contractor

Independent contractors have different tax and super obligations to employees. Use, employee or independent contractor – what's the difference to check whether you should be an employee or independent contractor.

You can also review common myths about being an independent contractor which may help you work out your work type and position.