“Be proud of Yourself”

Guy Forsyth

The problems of defining an independent contractor

Sunday, October 18, 2015

Are you a contractor?

While you have been busy working away as an independent contractor the legal profession has been defining your status.  Even though you may have a legitimate business entity with an ABN, submit BAS statements, take out insurances etc. etc. you might still be an employee in the eyes of the law.  As bizarre as this sounds the fact remains that there is still ambiguity over the definition of an independent contractor.  This ambiguity can be seen across the different definitions of a contractor and employee by Federal government agencies where the criteria differ.  The ATO, for example, thinks that it is quite simple and define a contractor based on the “degree of control” exercised by the client.  If the “employer” can direct “where, when and how” you do your work then you are an employee.  For the tens of thousands of professional contractors this is almost certainly the case that they are employees and not contractors according to this definition.   More...