The most asked questions I hear are on the differences between being an employee versus being a contractor. The below link lists the main differences from the ATO. If you are in the process of hiring or being hired and would like some assistance or more information then please contact my office. Please read below response from ATO on what to do if you’re unsure.

“What if the job you’ve been offered is described as contracting, but it looks more like being an employee?

Or, what if you have been a contractor, but the job has changed and now you think you might be an employee?

First, talk to the business to make sure you understand all the terms and conditions of your working arrangement.

If you have a written contract, it will contain your terms and conditions.

Often a business that is asking workers to wrongly apply for an ABN simply doesn’t understand the differences between contractors and employees. They might not know that they risk penalties for failing to treat their workers as employees. Some employers use this as a deliberate tactic to try and avoid their responsibilities.

You can also have a look at the information on the Fair Work Ombudsman website to help you understand more about working arrangements and how they affect you, your entitlements and responsibilities.

If you’ve signed a contract, consider whether you need to re-negotiate the terms and conditions. Getting legal advice can help you to understand what you are agreeing to and what you can or cannot change. The fact that you have a written agreement doesn’t necessarily make it legal for tax and super purposes.

A business that treats its employees as contractors gets an unfair advantage over others who are doing the right thing. You can report this to us anonymously to help stop unfair business practices.” Australian Taxation Office.—what-s-the-difference/


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