Working as a contractor

Contractors have different tax and super obligations to employees.

As a contractor, you're running your own business. You need an ABN, and you need to pay tax and super. You're not entitled to paid leave if you get sick or injured. You may have to pay the cost to fix anything you damage in the course of your work. You may also have to pay the costs incurred by someone else if you cause an accident on someone else's property.

You can be an individual (sole trader), or working in your own company, partnership, or trust. You might even call yourself an independent contractor, sub-contractor or a 'subbie'.

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

Watch this video about tax basics for small business


Duration 05:27. A transcript of Tax basics for small business overview is also available.

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Last modified: 09 Jun 2015QC 43442