Prior to March 2007, many Australian state and territory employment laws applied to genuine independent contractors as if they were employees. The Independent Contractors Act 2006 has changed this situation so that independent contracting arrangements are for the most part regulated by the law of commercial contracts and not employment law.
There is a transitional period from 1 March 2007 - 1 September 2011 during which these state or territory laws may continue to apply to an independent contractor and their principal (the person who hires them).
This transitional period allows parties with contracts that were covered by these state or territory contracting laws before 1 March 2007, more time to arrange their affairs and familiarise themselves with requirements under the Independent Contractors Act 2006, before the relevant state and territory laws cease to apply.
However, parties can choose to join the new system created by the Independent Contractors Act 2006 early by signing a reform opt-in agreement.
The transitional period does not apply to new independent contracting arrangements entered into from 1 March 2007 (unless they are a continuation of arrangements in place prior to that date). These new contracts are governed by the Independent Contractors Act 2006 immediately.