Published on 01 Apr 15
by "THE TAX SPECIALIST" JOURNAL ARTICLE
Whether a worker should be categorised as an employee, a contractor or even in a “bailor/bailee” relationship is an important decision which affects different areas of tax law in Australia. The greater use of contractors/subcontractors has brought about change in the way in which work is performed, not only as a result of the effect of technological change, but also as employers seek to abrogate many employment and taxation obligations and other economic factors. It is necessary, in each case, to examine all of the terms of the contract and to determine whether the person is working in the service of another or is working on their own behalf.
This article examines the factors which courts take into consideration when determining the employment relationship, in light of the rapidly changing nature of the workplace, the rapid growth of independent contractors in the workplace, as well as the employer’s tax obligations.