03/08/2026
Employee or Contractor? The Difference Matters.
Calling someone a contractor doesn't automatically make them one ~ and having an ABN doesn't necessarily settle the question either.
In Australia, worker classification requires consideration of the actual working relationship, including the rights and obligations of the parties, rather than simply relying on the label used in an agreement.
Some of the important factors can include:
✓ Can the worker delegate or subcontract the work?
✓ How is the worker paid?
✓ Who provides the tools and equipment?
✓ Who carries the commercial risk?
✓ Who has control over how the work is performed?
✓ Is the worker operating independently or as part of the business?
Getting the classification wrong can have consequences for both businesses and workers, including superannuation and PAYG withholding obligations.
Other employment entitlements may also be affected and should be discussed with an appropriate legal or workplace relations professional.
And remember — super is about your future. Whether superannuation must be paid can depend on the particular working arrangement, even where someone is described as a contractor.
If you're unsure about a worker's classification, be sure to seek specialist legal and tax advice.
Don't rely on the label. Understand the relationship.
General information only. This is not legal or tax advice. Seek professional advice for your circumstances.
