How to compliantly hire contractors in Australia

Australia has around 1 million independent contractors, which accounts for 7.8% of all employed workers in the country. So if you’re expanding your talent pool, Australia offers fantastic opportunities. 

If your business is looking to hire independent contractors from “Down Under”, you’ll need to be aware of your unique legal and tax obligations as an employer. There are specific legal distinctions between employees and independent contractors, which means you need to be especially careful about your hiring terms and contracts to avoid potential fines and penalties further down the track.

The Australian government requires strict adherence to filing requirements for tax reports and payrolls, so if you’re a foreign employer hiring contractors there for the first time, the amount of paperwork that you need to keep track of might feel a bit daunting.

All freelancers in Australia are covered by both the Independent Contractors Act 2006 and the Fair Work Act 2009. These guard the rights and freedoms of independent contractors, and protect them from unfair or harsh contracts. As a potential employer you’ll need to be familiar with what both of these laws entail before you start hiring contractors.

In addition, companies that engage independent contractors based in Australia for labor or services are subject to 10% superannuation payments which must be paid to their contractors’ specified superannuation fund.

From the contractor’s side, they will need to register to pay Australia’s Goods And Services Tax (GST) if their income meets or exceeds the $75,000 threshold.

As you can see, hiring independent contractors in Australia requires a lot of due diligence when it comes to tax and legal requirements, and the finer points can be easily overlooked—putting your company at risk of non-compliance. 

If you’re considering hiring independent contractors based in Australia, the Worksuite platform makes it easy.

Worksuite offers automated solutions to help companies and their Australian talent stay compliant with the GST and superannuation requirements of the ATO (AUS Taxation Office).

We ensure a compliant hiring framework that lets you know when talent must be engaged as a contractor, or employed directly, and we also provide all necessary documentation and reporting to maintain full compliance with ATO rules.

All employment, immigration, tax, and payroll regulations for your Australian talent can be outsourced to the Worksuite platform, which makes it fast to acquire talent and ensure full compliance with Australia’s unique labor and tax laws.

Best of all, Worksuite has automated the entire superannuation filing process for both employers and independent contractors—from the invoices that contractors are required to prepare and submit, to the amount of superannuation payments your company will need to make.