Contractors & Remuneration
The term "contractor" covers a wide variety of people in different work circumstances. It includes consultants, agents, outworkers, and people working under similar arrangements. These people may operate as sole proprietors, partnerships, companies, or through family trusts.
If you hire such people on a contract, you need to know that they may actually be workers, or deemed to be workers, under some contracts. Each time you hire a contractor, you need to determine whether he or she is a worker, or deemed to be a worker.
If the person is a worker or deemed to be a worker, you effectively become his or her employer for WorkSafe purposes, and you must include the money you pay the person in your total remuneration. If your total remuneration then exceeds $7,500, you must take out a WorkSafe policy.
There are substantial penalties for not taking out a policy if the law says that you must have one. It is your responsibility to find out whether your contractors are workers or deemed workers and whether you need a policy
Contractor Guidelines
The purpose of the contractor guidelines is to provide a detailed guide to the determination of rateable remuneration for contractors under the Accident Compensation Act 1985.
The guidelines are designed to enable business professionals to:
- identify relevant legislative provisions;
- interpret the relevant legislative provisions; and
- apply the legislative provisions
The requirements of the legislation are illustrated by reference to court judgments and rulings and tests for day to day decision making.
While these guidelines have been compiled with care, they may be overruled by legislative amendments to the law, or by decisions of appellate tribunals or courts.
Further information
• For more information on what to include in your remuneration, see Remuneration - what to include.
• Find additional information on WorkSafe policy/premium in the publication WorkSafe for Employers.
• Queries should be directed to your WorkSafe agent.
