Contractor entitlements and support

Independent contractors’ pay and conditions are based on what was agreed in their contract. They don’t receive employee entitlements.

Find information and where to get help.

On this page:

Entitlements

Independent contractors (contractors) don’t get the same entitlements as employees, such as minimum pay rates or paid leave.

However, contractors have some protections under the Fair Work Act, including protection from:

  • adverse action
  • coercion
  • abuses of freedom of association.

Learn more at Protections at work.

Minimum standards for some contractors

Some contractors have special laws that apply to them, including minimum standards for pay and conditions. These contractors are called regulated workers.

A contractor is a regulated worker if they are:

  • an employee-like worker doing digital platform work (for example, work in the gig economy)
  • a regulated road transport contractor who works in the road transport industry.

For more information, visit Regulated workers.

Payments

Contractors aren’t employees and don’t have a minimum wage or pay rate.

Instead, contractors usually negotiate their fees as part of their contract for the services.

Tax and super

Contractors provide services to another business or person. This means they need to pay their own income tax on money they earn and may need to pay GST.

As well as paying their own tax, contractors may need to make their own superannuation (super) contributions.

However, contractors may need to be paid super if they’re paid mainly for their labour. To learn more, visit the Australian Taxation Office - Super for independent contractors page.

For more information on tax and super, go to the Australian Taxation Office website.

Security of payment

Contractors in the building and construction industry can have the right to receive payments due under their contract, known as security of payment.

Each state and territory has its own security of payment laws that provide a process for resolving payment disputes.

The agencies listed below can provide information on relevant laws, details or adjudicators for payment delays and disputes in each state or territory.

Support and legal help

How we help

We can help with:

  • sham contracting, where an employee believes they’ve been misclassified as a contractor
  • employee entitlements.

We can’t help with:

  • telling you if a worker is a contractor or an employee
  • disputes about payments
  • unfair contracts.

Disputes about whether a worker is a contractor

Working out if a worker is a contractor or an employee can be complicated. It will depend on the circumstances of each relationship.

In some situations, a court may need to determine the nature of the relationship. If you need help working out if a worker is a contractor or an employee, consider seeking legal advice.

For more help, visit our Legal help page.

Disputes about payment

A contractor usually submits an invoice for payment. They can be paid on a regular basis or at the end of the contract or project.

If a contractor doesn't get paid for an invoice, they can take their own legal action or get legal help. We can’t enforce payment of unpaid invoices.

For support resolving disputes, you can contact the Australian Small Business and Family Enterprise Ombudsman (ASBFEO). They can help with payment issues, such as recovering unpaid invoices.

Unfair terms in contracts

Contractors who believe they have unfair terms in their services contract can seek support through different pathways.

The Fair Work Commission (the Commission) can help with disputes about unfair terms in contracts if both:

  • the services contract was entered into on or after 26 August 2024
  • the contractor earns less than the contractor high income threshold.

From 1 July 2024, the contractor high income threshold is $175,000.

For other disputes, contractors can seek Help from a court.

Help from the Commission

Some contractors can apply to the Commission for help resolving disputes about unfair terms.

Contractors, or a union or employer association representing them, can apply to the Commission about unfair terms if the:

  • contractor earns less than the contractor high income threshold
  • services contract:
  • term or terms relate to workplace relations matters, if the contractor was an employee, including:
    • remuneration or pay
    • leave entitlements
    • hours of work
    • termination
    • bargaining or industrial action
    • disputes between employees and employers.

The Commission can cancel or change terms that they decide are unfair.

For more information, visit the Commission’s Independent contractor disputes about unfair contract terms page.

Help from a court

Contractors can apply to the Federal Court or the Federal Circuit and Family Court of Australia for a review of their contract under the Independent Contractors Act 2006.

They can apply to the Federal Court if the:

  • services contract was entered into before 26 August 2024
  • contractor earns at least as much as the contractor high income threshold.

For more information, visit business.gov.au – Contractor rights and protections.

Related information