Independent contractors
Independent contractors run their own business, hiring out their services to other businesses and organisations. Unlike most employees, independent contractors negotiate their own fees and working arrangements, and can work for a variety of clients at one time.
- How do I know if I am an independent contractor?
You will need to determine whether you are classified as an independent contractor before entering a contract. Your status will affect your rights and obligations with your employer or the business you contract with. - What are my entitlements?
Independent contractors and hirers should be aware of their entitlements and obligations regarding superannuation, leave and redundancy, OH&S, and workers compensation insurance. - What are my taxation obligations?
There are special tax rules for independent contractors to ensure that you do not use business structures to avoid your income tax obligations. - How is my intellectual property affected?
IP created by an independent contractor is by law considered the property of the independent contractor, unless otherwise stated in the contract. - Independent contractors & the common law
The Independent Contractors Act 2006 relies on the common law meaning of independent contractor. The common law is a set of legal principles, which have been developed through decisions in the courts. - Unfair contracts and sham contracts
Under the Independent Contractors Act 2006, an unfair contract is one where a person performs work on terms that are 'unfair' or 'harsh'. - Dispute resolution
If you have a dispute with your hirer, there are a number of options available to help you resolve it and preserve your business relationship.- Alternative dispute resolution
Disputes can be resolved without lawyers or court hearings. Consider alternative dispute resolution methods if you're involved in a dispute with your hirer. - Going to court
As an independent contractor, your business relationship is governed by commercial law. The type of dispute will determine which court will hear your claim. - Getting your money back
Chasing payments from hirers can be difficult, but if it affects your business bottom line, you may decide to take action.
- Independent contracting in your state or territory
State and territory information on contracting. - Independent contractors: the essential handbook (audio)
Download an audio recording of Independent contractors: the essential handbook.
This information is brought to you by Swan Chamber of Commerce and
business.gov.au