Independent contractor agreement template

Answer six questions about how the work will really be done, then draft a contractor agreement. Answers that point towards employment are flagged in the agreement and the checklist.

Figures checked 5 November 2026. Free to use, no sign-in.

Relationship check

Answer for how the work will really be done, not what you would like the contract to say.

Can the contractor send someone else to do the work?
Does the contractor decide how, when and where the work is done?
Does the contractor supply their own tools and equipment?
Are they paid for a result, rather than for their time?
Do they actually work for other clients?
Do they carry the cost of fixing defects and the risk of a loss?

Parties

The contractor is

Work and fees

Signing

Independent contractor agreement

Relationship check

0 of 6 answers point towards employment, 6 unsure. No single factor decides it: the law looks at the whole relationship.

  • The contractor can send someone else to do the workUnsure
  • The contractor decides how, when and where the work is doneUnsure
  • The contractor supplies their own tools, equipment and materialsUnsure
  • Payment is for a result or deliverable, not for time workedUnsure
  • The contractor is free to work for other clients and does soUnsure
  • The contractor carries the risk of loss and fixes defects at their own costUnsure

Check before you use it

  • Since 26 August 2024 the Fair Work Act looks at the whole relationship, including how the work is actually done, not only what this agreement says (s 15AA). Check the answers in the relationship check reflect practice, and recheck if the work changes.
  • 6 answers are unsure. Settle them before signing, because the answer depends on how the work will really be done.
  • Super: if you pay an individual mainly for their labour (more than half the contract value), for their personal skills rather than a result, and they must do the work themselves, they are an employee for super guarantee purposes even with an ABN (ATO). You may need to pay super for them.
  • Do not end an employee’s employment to re-engage them as a contractor for the same work (s 358).
  • Check state payroll tax and workers compensation rules: contractors can be treated as workers for those purposes.

Independent contractor agreement

Business[Business legal name]
Contractor[Contractor legal name] (ABN [Contractor ABN])
Start date[Start date]
End dateOn completion of the services, unless ended earlier under this agreement

1. Services

The Contractor will provide the following services: [describe the services or deliverables and the standard required].

2. How the services are performed

  • The Contractor decides the method, hours and place of work needed to deliver the services, subject to reasonable site, safety and access requirements and agreed deadlines.
  • The Contractor supplies the tools, equipment and materials needed, unless this agreement says otherwise.
  • The Contractor may engage employees or subcontractors to perform the services, at its own cost, and remains responsible for their work.
  • The Contractor may provide services to other clients, provided this does not breach the confidentiality clause.

3. Fees and invoices

The Business will pay a fixed fee of [amount] plus GST. The Contractor will invoice on completion of each agreed milestone, and the Business will pay each correct invoice within 14 days. Invoices must be valid tax invoices. The Contractor is responsible for its own tax and for any superannuation, workers compensation and leave for its own workers.

4. Defects and risk

The Contractor will fix, at its own cost, any part of the services that does not meet the agreed standard.

5. Insurance

The Contractor will hold [CHECK: public liability and professional indemnity cover, with amounts] for the term of this agreement and provide certificates on request.

6. Work health and safety

Each party will meet its duties under the work health and safety law that applies, cooperate on safety at any site of the Business, and report incidents promptly.

7. Confidentiality and intellectual property

The Contractor will keep the Business’s confidential information confidential and use it only to provide the services. Intellectual property in deliverables created for the Business passes to [Business legal name] on payment. [CHECK: change if the Contractor is to keep ownership and license the work.]

8. Ending this agreement

Either party may end this agreement by giving [number] days’ written notice, or immediately by written notice if the other party seriously breaches it and does not fix the breach within [number] days of being asked. The Business will pay for services properly performed up to the date the agreement ends.

9. Relationship

The parties intend the Contractor to be an independent contractor and not an employee. Both parties understand that this statement does not decide the question: what matters is how the relationship works in practice, considered as a whole.

Signed for [Business legal name]

[Signatory name]

[Signatory position]

Date: ____________

Signed for [Contractor legal name]

Signed: ________________________ Date: ____________

Highlighted text in [brackets] still needs your input. General information, not legal advice. The relationship check is a guide to the factors, not a ruling.

How this works

The relationship check uses common indicators of a genuine contracting business: delegation, control, tools, payment for results, other clients and risk. Each answer shows which way it points. “Unsure” is counted as unsure, not against you, and the checklist asks you to settle it before signing.

Where an answer about delegation, control, tools or other clients points towards employment, the matching clause is marked [CHECK] rather than written as if the opposite were true. If three or more answers point towards employment, the checklist recommends advice before you use the agreement.

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Legal basis

Checked against these sources on 5 November 2026. Spotted a figure that looks wrong? Tell us.

Questions

Does a contractor agreement make someone a contractor?

No. Since 26 August 2024 the Fair Work Act decides whether someone is an employee by looking at the real substance, practical reality and true nature of the whole relationship, including how the contract is performed in practice. A written agreement helps, but it does not override what actually happens.

What points towards a genuine contractor?

They can delegate or subcontract, control how and when the work is done, supply their own tools, are paid for results, work for other clients, and carry the commercial risk. No single factor decides it.

Do I have to pay super for a contractor?

Possibly. The ATO treats an individual as an employee for super guarantee purposes if you pay them mainly for their labour, for their personal skills rather than a result, and they must do the work themselves, even if they have an ABN. Contracts with a company, trust or partnership are not caught.

What is sham contracting?

Telling someone who is really an employee that they are an independent contractor. It is a contravention of the Fair Work Act unless you reasonably believed it was a contract for services. Dismissing an employee to re-engage them as a contractor for the same work is also prohibited.

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Questions the calculator can’t answer?

Workfloor answers pay, award, leave and termination questions for your team, with the Fair Work Act section or award clause behind each answer.

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