Principals and workers need to fully understand the distinction
between an independent contractor and an employee and how these
classifications can affect their rights and obligations,
particularly with respect to tax, superannuation and workplace
entitlements and liabilities. Employers, and also their
workplace advisers, should be wary of entering into any labour
arrangement to ensure they comply with the Independent Contractors
Act 2006 (Cth) and do not breach the sham contracting provisions
under the Fair Work Act 2009 (Cth).
Regulation of Independent Contracting
Independent contracting is a common form of engaging services
within the construction industry.
The operative provisions of the Independent Contractors Act 2006
(Cth) (IC Act) commenced on 1 March
2007. Prior to the IC Act, some independent contractors may
have been 'deemed' to be employees under some state and
territory laws. The IC Act sought to exclude the operation of
certain of these state and
