The Australian Taxation Office (ATO) are conducting audits and reviewing instances where common law employees are being treated incorrectly as contractors. Having an Australian Business Number (ABN) does not automatically make you a contractor. Generally speaking, contractors are paid for the results they achieve rather than the time they work. They also do not normally have to work during hours set by an agreement or aware, and the employer does not provide them with the tools to do their work or direct their work. The tax office has on-line tools to help decide the answer, but so too has your tax adviser, many years of experience in the uncertainties in this area of legal interpretation.
14th-September-2011 | 