Hiring in Australia: Employee vs Independent Contractor vs EOR (Sham Contracting Risks)

A foreign company with no Australian entity has three realistic ways to engage a person in Australia: sign them as an independent contractor, hire them through an Employer of Record (EOR), or register its own Australian entity. The contractor route is only appropriate when the person is in business for themselves. Australian law looks at the real substance of the working relationship, not the label on the contract, and wrongly treating an employee as a contractor can be sham contracting, which carries civil penalties. An employee brings National Employment Standards, award or minimum wage coverage, superannuation (now paid under Payday Super), state payroll tax and unfair dismissal rights. This guide compares the routes, gives a classification checklist and a decision guide, and flags where Australian counsel should confirm.

Table of Contents

1. The Short Answer: Three Routes at a Glance
2. How Australian Law Tells an Employee From a Contractor
3. Classification Checklist: Indicators and What They Point To
4. Sham Contracting and Penalty Exposure
5. National Employment Standards, Minimum Wages and Modern Awards
6. Superannuation, Payday Super and State Payroll Tax
7. Termination and Unfair Dismissal Basics
8. Permanent Establishment and Tax Exposure for a Foreign Company
9. Route by Route: Contractor, EOR and Own Entity
10. Illustrative Scenario (Hypothetical, Not a Real Client)
11. Decision Guide: Which Route Fits Your Situation
12. How Knit's EOR Service Handles This
13. Frequently Asked Questions
14. Glossary of Key Terms
15. About Knit
16. Related Reading

1. The Short Answer: Three Routes at a Glance

When a company outside Australia wants to put one person to work in Australia, the first question is not "which vendor?" It is "what is this person's relationship to us in law?" The answer drives everything else: pay floors, leave, super, tax withholding, how you can end the arrangement, and what happens if a regulator disagrees with the label you chose.

The table below compares the three routes at a high level. It describes the typical structure, not a guarantee for any specific person or contract.

None of these routes is "best" in the abstract. The right one depends on the facts of the working relationship and on your plans for Australia. The rest of this article explains the legal tests and obligations so you can see which route the facts support.

For the general mechanics of the EOR model, see our overview of what an Employer of Record is. For a cost-focused comparison with entity setup, see EOR vs entity setup: the real cost math.

2. How Australian Law Tells an Employee From a Contractor

Australia does not let two parties settle the question by agreement. A contract can call someone a "contractor," a "consultant" or a "business partner," and the label still does not decide the outcome.

The Fair Work Ombudsman (FWO) explains that whether a person is an independent contractor or an employee depends on a number of indicators, and that "there usually won't be one deciding indicator." On its independent contractors page, the FWO lists the kinds of indicators it has in mind: who controls how the work is done, who carries financial risk, who supplies tools, whether the worker can delegate or subcontract, the hours of work, and whether the work is ongoing.

The whole of relationship test

The FWO's page on the whole of relationship test says that from 26 August 2024, certain businesses must use this test when working out whether a worker is an employee or a contractor. The FWO links the test to sections 15AA and 15AB of the Fair Work Act 2009. As the FWO describes it, the test looks at "the real substance, practical reality and true nature of the relationship," and it considers all parts of the relationship, including the terms of the contract and how the contract operates in practice.

Three points from that guidance matter for foreign companies:

• The contract is one input, not the answer. Courts and regulators compare what the paper says with how the work is actually done.
• No single factor decides. Having an ABN or sending invoices does not automatically make someone a contractor. The type of work does not decide it either.
• The test applies to a defined group of businesses. The FWO says the businesses covered are constitutionally covered businesses, and its examples include a proprietary limited company, a foreign corporation and a trading or financial corporation. Sole traders, partnerships and some other business types are excluded. Whether your company falls inside the group is a question for Australian counsel, but a foreign company should not assume it sits outside.

The earlier test and the high income opt-out

The FWO describes a second approach, the start of relationship test, which determines status "based on what the parties have agreed to." It applies to work performed before 26 August 2024 and in some other situations. The FWO also says that contractors earning above a contractor high income threshold, which is adjusted annually, can choose the start of relationship test. Check the FWO's current page for the threshold figure and how the opt-out works, because we did not rely on a stated amount here.

You may see the phrase "ultimate character" in commentary on this area. That language comes from case law and legal analysis. The FWO's guidance uses the terms "whole of relationship" and "start of relationship," and we use the FWO's terms in this article. If your counsel uses different vocabulary, the practical message is the same: Australian decision-makers look past labels to the real working relationship.

What the FWO will not do

The FWO says on its pages that it cannot decide whether a particular person is a contractor or an employee, and that unclear cases call for legal advice. We take the same position. Nothing in this article tells you how any specific worker would be classified.

3. Classification Checklist: Indicators and What They Point To

Use the table below as a screening tool before you sign anything. It is built from the indicators the FWO describes. It is not a scoring system, because the law does not add up points. Several indicators pointing the same way, however, should give you pause.

How to use it: complete the table for the actual working arrangement, not the proposed contract. Then compare the answers with the contract terms. Gaps between the two are the red flags. A contract that says "the contractor controls their own hours" while your team expects the person online from 9 to 5 in the Sydney time zone is a gap a regulator would notice.

The FWO's whole of relationship page also reminds readers that holding an ABN or issuing invoices does not settle the question. Treat the ABN as a data point, not as proof.

4. Sham Contracting and Penalty Exposure

Sham contracting is the specific legal wrong that misclassification can turn into. The FWO's sham contracting page describes it as a situation where a worker is incorrectly told they are an independent contractor but is actually an employee. It cites sections 357 to 359 and 539 of the Fair Work Act 2009.

According to the FWO, the following conduct is prohibited:

• Representing an employment relationship as an independent contracting arrangement, where the business knows or is reckless about the true position.
• Knowingly making a false statement to persuade an employee to become a contractor.
• Dismissing, or threatening to dismiss, an employee in order to re-engage them as a contractor to do the same or substantially the same work.

The reasonable-belief point

The FWO notes that a business may avoid a sham contracting finding if it can prove it reasonably believed the worker was a contractor. That is a defense you have to prove, not a presumption in your favor. A documented classification review done before the engagement starts is far easier to defend than a belief formed after a dispute. It also makes sense to revisit the classification when the working arrangement changes.

Civil penalties

As displayed on the FWO sham contracting page when we checked it in October 2026, the maximum civil penalties per contravention are:

Three cautions apply. First, the page does not show an effective date or say how amounts are indexed, and the FWO's independent contractors page showed different, lower amounts for individuals and corporations when we looked, which suggests the figures are updated periodically. Second, "per contravention" means separate breaches can be counted separately. Third, penalties are only part of the exposure. Underpayment of award wages, leave, super and tax can sit on top, and an employer that has to back-pay a misclassified worker may owe amounts across the whole engagement. Confirm the current figures on the FWO page and with Australian counsel before relying on them.

The ATO takes a parallel view on the tax side. Its guidance on your tax and super obligations for employees and contractors says it is against the law to wrongly treat an employee as an independent contractor, and that penalties may apply.

For a broader look at misclassification across countries, see our guide on hiring a foreign independent contractor.

5. National Employment Standards, Minimum Wages and Modern Awards

If a worker is an employee, a baseline of entitlements comes with the relationship. You cannot contract out of it.

National Employment Standards

The FWO's National Employment Standards page states that all employees in the national workplace relations system are covered by the NES, regardless of the award, registered agreement or employment contract that applies. Other instruments cannot provide conditions that are less than the NES and cannot exclude them. Casual employees receive only some of the entitlements.

The NES cover, among other topics:

• The maximum weekly hours an employee can be required to work
• Requests for flexible working arrangements
• Parental leave and related entitlements
• Annual leave
• Personal or carer's leave and compassionate leave
• Family and domestic violence leave
• Community service leave
• Long service leave
• Public holidays
• Notice of termination and redundancy pay
• The Fair Work Information Statement, which employers give to new employees

The FWO's page and fact sheets give the current detail and numbering. Check them directly, because the standards have been amended over time.

Minimum wages and modern awards

The FWO describes modern awards as legal documents that set minimum pay rates and conditions for a given industry or occupation, and many employers and employees are covered by one. The FWO's awards page explains how to find the award that applies, and each award summary states who it covers. Where no award or registered agreement applies, the national minimum wage applies. The FWO's minimum wage page notes that for most employees the relevant award, not the national minimum wage, sets the pay floor, and award rates can be higher.

We are deliberately not quoting a dollar rate here. Minimum wage and award rates are reviewed each year and take effect on a set date, and the figure shown on a cached page may be out of date. Use the FWO's Pay and Conditions Tool or the Fair Work Commission's current decision for the rate that applies on your start date. For market salary context rather than legal floors, our guide to average salary in Australia gives a 2024 view, so treat it as background and not as a current benchmark.

A practical point for foreign employers: "we pay well above the minimum" does not end the analysis. Awards also set overtime, penalty rates, allowances and classification rules, and an annualized salary needs to be checked against what the award would require for the hours actually worked. Australian counsel or an experienced local payroll team should confirm award coverage for the role.

6. Superannuation, Payday Super and State Payroll Tax

Employment in Australia comes with two cost layers that foreign employers often overlook: superannuation and state-level payroll tax.

Superannuation and Payday Super

The Australian Taxation Office (ATO) page for super for employers confirms that Payday Super applies from 1 July 2026, with the quarterly system applying to pay periods up to 30 June 2026. As of October 2026, Payday Super is already in force.

The ATO's About Payday Super page says:

• Super guarantee contributions must be received by the employee's super fund within seven business days after the employer pays the employee, with some exceptions such as for new employees. Under the old system, contributions were due quarterly.
• Payday Super does not change who is eligible, and it does not change the 12% rate.
• Super is calculated on qualifying earnings, which brings together ordinary time earnings and other payments, including commissions and salary sacrifice contributions.
• The ATO assesses the super guarantee charge, which includes interest and an administrative uplift, and penalties are 25% or 50% of the unpaid charge depending on prior penalties.

The practical effect: a late or missing super payment now surfaces within weeks rather than at a quarterly deadline. Payroll processes designed for quarterly super need to run on the pay cycle.

The ATO also says that independent contractors paid mainly for their labor can fall inside the super obligation. Its guidance for paying super on payday links to the detailed rules. In other words, a contract that calls someone a contractor does not necessarily remove the super question, even when the person is not an employee at common law. Check the ATO's eligibility guidance for any contractor engaged mainly for their personal labor.

State payroll tax

Payroll tax is a state and territory tax, not a federal one, and it is paid by employers. Revenue NSW describes it as a tax paid by employers and assessed on wages paid to employees, with businesses required to register once their total monthly Australian wages exceed a monthly threshold. Its payroll tax page refers to separate pages for thresholds and rates. The State Revenue Office Victoria states on its contractors page that payments to contractors can be subject to payroll tax, and it lists a separate exemption topic for contractors who normally provide services to the public.

Three qualitative points follow:

1. Thresholds and rates differ by state and territory, and change. We do not quote figures. Check the revenue office of the state where the worker is located.
2. Contractor payments can be pulled in. In some states, payments to contractors can count toward taxable wages. Whether a given contract does depends on that state's rules and exemptions.
3. Grouping can matter. Revenue NSW notes that grouping rules affect which business in a group can claim the tax-free threshold. A foreign parent with other Australian-connected entities should ask how that works for its group.

For a single hire, the payroll tax bill may be small or nil depending on the state threshold, but registration, return and group questions still need an answer. Confirm with a local tax adviser.

7. Termination and Unfair Dismissal Basics

The contractor route can look easier to exit: give notice under the contract and stop paying invoices. The employee route comes with statutory protections, so ending employment needs more care.

The FWO's unfair dismissal page describes unfair dismissal as a dismissal in a harsh, unjust or unreasonable manner. The key points from that page:

• A minimum employment period applies before an employee can make an unfair dismissal claim: six months, or twelve months for an employee of a small business.
• A small business is one with fewer than 15 employees. The headcount is taken when the employee is told of the termination or given notice, and it includes employees of associated entities. The page says this can include associated entities overseas, so a foreign company with a large global headcount should not assume small business treatment.
• A claim must be lodged with the Fair Work Commission within 21 days after the dismissal takes effect.
• Small businesses that follow the Small Business Fair Dismissal Code may be able to show a dismissal was fair.
• Employees can also apply on other grounds, including general protections and unlawful termination.

Separately, the NES include notice of termination and redundancy pay. The rules depend on length of service and other factors, so we do not summarize the scale here. Check the FWO's notice of termination guidance for the current detail.

Two practical consequences for a foreign employer:

• Do not treat "at will" as an Australian concept. A termination "for convenience" clause that works in other countries does not override statutory notice and unfair dismissal protection for an employee.
• Document performance and process. If a termination might be challenged, a fair process and clear reasons are your best protection. Get Australian counsel involved before you give notice, not after.

An EOR does not remove these rules. The EOR is the legal employer and must follow them, which is why client and EOR should agree in advance who decides what in a performance or termination scenario.

8. Permanent Establishment and Tax Exposure for a Foreign Company

Engaging someone in Australia can raise a corporate tax question for the foreign company itself: does the arrangement create a taxable presence in Australia?

The ATO's guidance on tax for foreign residents doing business in Australia says that, for a business from a treaty country, income from business carried on through a permanent establishment (PE) in Australia is generally subject to tax in Australia. The page says a PE includes fixed places such as branches and offices, and dependent agents who can conclude contracts. For non-treaty countries, it says income from an Australian source is generally taxable in Australia. The page we reviewed was last updated in August 2020, so check current ATO guidance and the applicable tax treaty.

What this means in plain terms:

• A worker who signs contracts or habitually secures orders for you is the classic PE risk, whether they are an employee, an EOR worker or a contractor.
• A home office used as your de facto base can contribute to a fixed-place analysis.
• Using an EOR changes who employs the worker. It does not automatically remove the PE question. The analysis looks at what the worker does for you.
• A purely back-office or support role typically raises fewer concerns than a sales role with authority to bind the company, but the answer is fact-specific.

Corporate tax is separate from employment law, and a classification that is right for labor law is not automatically right for tax. Ask an Australian tax adviser, and one in your home country, to review the planned role, the worker's authority and your treaty position before the person starts. Our guide to hiring abroad without a foreign entity, including PE and data compliance covers the general framework.

9. Route by Route: Contractor, EOR and Own Entity

Route 1: Engage an independent contractor

This route fits when the person truly runs their own business. Think of a specialist who designs a website, audits a system or delivers a defined piece of work, uses their own tools, sets their own schedule, takes other clients and could send someone else to do the job.

What you need to do:

• Run the classification checklist in section 3 against the facts, not just the draft contract.
• Make sure the contract describes a result or defined services, not a seat on your team.
• Check whether the worker has an ABN and how the ATO's rules treat the engagement. The ATO states that contractors generally manage their own tax, and that withholding can apply if the worker does not quote an ABN.
• Look at super, because contractors paid mainly for labor can fall within the ATO's super rules.
• Check state payroll tax rules for contractor payments.
• Review the PE position.

Where it goes wrong: the engagement drifts. A six-week project becomes a standing role, the person takes direction daily, uses your systems and email, works your hours and has no other clients. The paper still says "contractor," but the practical reality now looks like employment.

Some companies use a Contractor of Record (COR) provider to manage contractor paperwork and payments. A COR can help with administration, but it does not change the legal reality of the worker's status. Read our Contractor of Record guide and the EOR vs COR comparison before you assume a COR solves a classification problem.

Route 2: Engage through an Employer of Record

This route fits when the person will work like an employee: set hours, one client, direction from your managers, long-term role. The EOR becomes the legal employer in Australia. It issues an employment contract that meets local requirements, runs payroll, pays super, handles state payroll tax and withholding as employer, and manages statutory entitlements. You direct the day-to-day work.

What you still own: the role definition, performance management, business conduct and the PE analysis. You also share responsibility for providing accurate information to the EOR, such as actual hours worked and duties performed, so that award and entitlement calculations are right.

Things to ask any EOR provider about Australia:

• Who is the employing entity, and how does it meet its Australian obligations?
• How does it handle award coverage, super under Payday Super and state payroll tax?
• How are termination and redundancy handled, and who decides?
• What does the agreement say about liability if something goes wrong?

Route 3: Set up your own Australian entity

This route fits when Australia is a long-term market and you expect several hires, local customers or a local office. You register an entity, set up tax registrations and payroll, and employ directly. You gain control and a permanent local presence. You also take on the setup effort, ongoing compliance, directors and fixed costs. Our cost math comparison walks through how to model the choice. A local entity also creates a clear Australian taxpayer, so get tax and corporate advice on structure.

A common path is to start with an EOR to test the market, then move to an entity when headcount and revenue justify it. Ask early how a transfer of employees would work, because that affects continuity of service and entitlements. Australian counsel should advise on the specifics.

10. Illustrative Scenario (Hypothetical, Not a Real Client)

This scenario is invented to show how the analysis works. It describes no real company or person, and it does not say how any real worker would be classified.

The facts. A software company based outside Australia, "Company X," wants a customer support specialist in Melbourne. It has no Australian entity. A recruiter finds "Worker A," who has an ABN from earlier freelance work. Company X's founder proposes a contractor agreement because it is quick.

What the arrangement would look like in practice.

• Worker A would work Monday to Friday, covering a roster that matches customers in the Asia-Pacific time zones.
• Worker A would use Company X's help desk software, a company email address and a job title on the website.
• Worker A would report to Company X's support manager, who would approve time off and set quarterly goals.
• Worker A would be paid a fixed monthly amount and would not take on other clients.
• Worker A could not send a substitute.

Applying the checklist. Control, delegation, tools, financial risk, integration, payment basis and exclusivity all lean toward employment. The only contractor-leaning fact is the ABN, and the FWO says an ABN does not decide the question. On these assumptions, Company X would have a serious classification risk if it used the contractor route. The sham contracting rules and a possible back-pay exposure would come into play if a regulator or a court later disagreed with the label.

The options Company X would compare.

The likely discussion. Because Company X wants one full-time person working under its direction, the EOR route and the entity route are the two that match the facts. For one hire with uncertain Australian plans, Company X might lean toward an EOR and revisit an entity if headcount grows. That is a business judgment, not a legal conclusion, and Company X should confirm its choice with Australian counsel and a tax adviser.

11. Decision Guide: Which Route Fits Your Situation

Work through the questions below in order. They help you see which route the facts support. They do not replace advice.

A short pre-engagement checklist:

1. Describe the real working arrangement in writing, as it will operate day to day.
2. Complete the classification table in section 3 and compare it with the draft contract.
3. Identify the state where the worker will be located and look up its payroll tax rules.
4. Check super, including how Payday Super affects your payroll cycle.
5. Check award coverage and the minimum pay that applies on the start date.
6. Get a PE review from a tax adviser.
7. Agree who decides on performance and termination, and how notice works.
8. Keep records of the classification reasoning, dated before the engagement begins.
9. Re-run the review if duties, hours or the relationship change.
10. Confirm the plan with Australian counsel before signing.

12. How Knit's EOR Service Handles This

Knit People is an Employer of Record provider that was founded in Canada in 2015 and offers EOR, PEO, global payroll and Contractor of Record services. In an EOR arrangement, Knit acts as the legal employer for the worker while the client directs the day-to-day work. In the typical EOR model, the worker is engaged as an employee under local rules instead of as a contractor, which addresses the classification question for a role that looks like employment.

For clients considering Australia, Knit's team can discuss the setup, the employment documentation, how payroll, super and statutory entitlements are administered, and how performance and termination decisions would be handled. Because Australia-specific delivery details, including which entity employs the worker and how obligations are met, matter for your risk analysis, ask Knit's team to confirm them in writing during scoping. Knit's Australia page provides an overview, and the Knit team can walk through your facts.

Knit does not replace legal or tax advice. Where your question is whether a particular person is an employee or a contractor, or whether an arrangement creates a permanent establishment, you should involve Australian counsel and a tax adviser. Knit's team can work alongside them.

See the Employer of Record Australia page for an overview, or contact Knit to discuss your situation.

13. Frequently Asked Questions

1. Can I hire someone in Australia as a contractor to avoid setting up an entity?

‍Only if the person is an independent contractor in practice. Australian law looks at the real working relationship, not the label. If the person works set hours under your direction, uses your tools and works only for you, a regulator could treat them as an employee. Check the facts first and take advice from Australian counsel.

2. What is the test for employee vs independent contractor in Australia?

‍The Fair Work Ombudsman describes a whole of relationship test that applies to certain businesses from 26 August 2024. It looks at the real substance and practical reality of the relationship, including the contract and how it operates. No single factor decides the outcome. An earlier approach, the start of relationship test, focuses on what the parties agreed.

3. What is sham contracting?

‍Sham contracting happens when a worker is incorrectly treated or described as an independent contractor but is in fact an employee. The Fair Work Act prohibits knowingly or recklessly misrepresenting employment as contracting, and dismissing an employee to re-engage them as a contractor. A business may avoid liability if it proves it reasonably believed the worker was a contractor.

4. What are the penalties for sham contracting?

‍The FWO's sham contracting page, as shown in October 2026, lists maximum civil penalties per contravention of $19,800 for individuals, $99,000 for businesses with fewer than 15 employees and $495,000 for larger businesses. Amounts are updated over time and other FWO pages showed different figures, so confirm the current amount with the FWO and counsel.

5. Does having an ABN make someone a contractor?

‍No. The FWO says holding an ABN or issuing invoices does not automatically make a person a contractor. An ABN is one data point among many. The decision turns on the whole relationship, including control, delegation, tools, financial risk and whether the person operates as a real business.

6. Do I have to pay super to a contractor?

‍Possibly. The ATO says contractors paid mainly for their labor can fall within the super obligations, even though most contractors manage their own super. Check the ATO's guidance for the specific arrangement. For employees, super is payable and, under Payday Super from 1 July 2026, must reach the fund within seven business days of payday.

7. Does an Employer of Record solve the permanent establishment question?

‍Not automatically. An EOR changes who employs the worker, but a permanent establishment analysis looks at what the worker does for your company, including authority to conclude contracts and where the work happens. Roles with sales authority raise more concern. Ask a tax adviser to review the role before the person starts.

8. Is payroll tax charged on contractors in Australia?

‍Sometimes. Payroll tax is a state and territory tax, and rules differ. The State Revenue Office Victoria says payments to contractors can be subject to payroll tax, and it lists an exemption topic for certain contractors. Check the revenue office in the worker's state, because thresholds, rates and exemptions vary.

9. Can I dismiss an Australian employee at will?

‍No. Employees have statutory protections, including notice and redundancy rules in the National Employment Standards and unfair dismissal rights after a minimum employment period. The FWO's page gives six months generally and twelve months for small business employees. Get advice before ending an employment relationship.

10. When does an entity make more sense than an EOR?

‍An entity usually makes more sense when you expect several hires, a local customer base or a long-term office, and you can accept the setup effort and ongoing compliance. An EOR often suits one or a few hires or a market test. A cost model that uses your real assumptions will help you compare them.

14. Glossary of Key Terms

ABN (Australian Business Number): An identifier for businesses in Australia. Holding one does not decide whether a worker is an employee or a contractor.

Award (modern award): A legal document that sets minimum pay rates and conditions for an industry or occupation.

ATO: The Australian Taxation Office, which administers federal tax and super obligations.

Constitutionally covered business: A term the FWO uses for the businesses that must use the whole of relationship test. The FWO's examples include a proprietary limited company and a foreign corporation.

EOR (Employer of Record): A provider that acts as the legal employer of a worker on behalf of a client, which directs the day-to-day work.

FWO: The Fair Work Ombudsman, the Australian agency that provides guidance on workplace rights and enforces workplace laws.

NES (National Employment Standards): Minimum employment entitlements that apply to employees in the national workplace relations system and cannot be excluded by contract.

Payday Super: The ATO's requirement, applying from 1 July 2026, that super guarantee contributions reach the employee's fund within seven business days of payday.

Payroll tax: A state and territory tax paid by employers on taxable wages.

Permanent establishment (PE): A taxable presence of a foreign business in another country, such as through a branch, an office or a dependent agent.

Sham contracting: Misrepresenting an employment relationship as an independent contracting arrangement, in breach of the Fair Work Act.

Start of relationship test: An approach that determines status based on what the parties agreed, as described by the FWO.

Whole of relationship test: The approach that looks at the real substance, practical reality and true nature of the working relationship.

15. About Knit

Knit People (万领钧) is a global provider of Employer of Record, PEO, Global Payroll and Contractor of Record services, plus headhunting and recruitment, background checks, entity registration, global tax, insurance and work visa support. Founded in Canada in 2015, Knit has about 11 years of experience, serves 4,000+ clients across 172 countries and regions, processes over USD 600 million in annual payroll, operates 60+ owned entities and runs a China operations hub in Shenzhen (MSB license No. M23187879). To discuss hiring in Australia, contact the Knit team or explore Knit's Employer of Record services.

16. Related Reading

• Employer of Record in Australia
• Hiring a Foreign Independent Contractor
• Hiring Abroad Without a Foreign Entity: Remote Work, PE and Data Compliance
• Global Hiring Guides
• Employer of Record in Singapore

This article provides general educational information about hiring in Australia and is not legal, tax, immigration or financial advice. Australian employment, superannuation, payroll tax and tax rules, penalty amounts, thresholds and rates change over time and differ by state and territory. Whether a particular person is an employee or an independent contractor, and whether an arrangement creates a permanent establishment, depends on specific facts. Before engaging anyone in Australia, confirm your approach with Knit's local team or with licensed Australian legal counsel and tax advisors, and check the cited agency pages for current figures.