Worker or Contractor tool

This tool is designed to help you determine whether a person is a worker, a deemed worker or contractor for workers compensation insurance purposes.

Note: a person’s status for tax purposes may not be the same as their status as a worker for workers compensation insurance purposes. For example, a person may be a contractor for tax purposes, but still be a worker for the purposes of workers compensation.

This tool is a guide only. To formally determine a worker’s status, you will need to lodge a private ruling application

Disclaimer

Instructions

This self-assessment will take approximately 10 minutes to complete.

When completing this assessment you may find it useful to have any relevant contracts or agreements nearby.

Please note that your progress will not be saved and that your responses will be lost if you exit before completing the assessment.

Labour hire arrangements

Labour hire refers to the provision of outsourced workers hired for short or long-term positions.

There is a labour hire arrangement:

• where a labour hire company provides temporary workers (such as receptionists) and you (the client) direct the worker in the performance of their duties
• where a labour hire company provides specified service to its clients, e.g. a security firm that provides security services including alarms, remote monitoring and the provision of a security guard who is supplied and directed by the labour hire company.

In these circumstances you are not generally considered to be the employer of the worker.

These workers are employed by the labour hire company and not by you, so there is no contractual relationship with the worker.

In both cases the labour hire company must hold a valid workers compensation policy for the worker. The labour hire company can confirm this by supplying a NSW workers compensation certificate of currency.

Is the person performing work under a labour hire arrangement as explained above?

Progress to the next screen by clicking on one of these options.

Labour hire options

Yes No

Select the appropriate classification for the person:

Question 1 answer options

Natural person

A sole trader, a member of a partnership, a person who may benefit under a trust or a person who is an employee of a trust.

Incorporated entity

An entity that operates under any incorporated business structure (e.g. an incorporated company registered under the Corporations Act 2001 or a trust with an incorporated company as the trustee).

Apprentice

An individual who works for a skilled or qualified person in order to learn a trade, craft or profession, usually for a specified period.

Note: When determining the worker classification, it does not matter if the worker holds an Australian Business Number (ABN).

Does the person (not you the employer) sub-contract or employ others to carry out work?

Does the person independently advertise their business services on a commercial basis?

Does the person provide and work to a "job by job" quote (including labour, tools etc.) for the work performed?

Is the person entitled to annual leave, sick leave, superannuation and/or do they have PAYG tax withheld?

Does the person supply specialised plant and/or material to undertake the work?

Does the person supply their own tools and equipment?

Is the person required to wear a uniform or display your company's logo or business name in any other form?

Is the person paid at a set rate? This may be hourly, daily, weekly, per brick or tile etc.

Result = Worker

Response summary:

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