We are frequently asked "What is the difference between an employee and a contractor?" An employee works in the business and is part of the business. A contractor is running their own business.
The ATO takes six main factors into account to determine whether a worker is an employee or contractor for tax and superannuation purposes:
• Ability to subcontract/delegate
• Basis of payment (eg hourly rate, commission or fixed quote)
• Provision of equipment and tools
• Commercial risk
• Control over the work (what, where, how and when the work is performed)
The ATO has a decision tool to assist in determining if a worker is an employee or a contractor: https://www.ato.gov.au/Calculators-and-tools/Employee-or-contractor/