Independent contractor or employee? Getting your support work arrangement right

· For workers · Source checked 13 October 2026

Calling someone a contractor does not make them one. Here is how the Fair Work Ombudsman describes the difference, the questions to ask before you agree, and what changes if you work under another provider’s registration.

Why the label matters

The Fair Work Ombudsman explains that independent contractors provide services to another person or business instead of being employed by them. They usually negotiate their own fees and working arrangements, can work for more than one client at a time, and do not have the same rights and obligations as employees.

It matters because it affects tax, super, insurance, leave, who directs the work and who carries the risk. Getting it wrong can create problems for both sides, so it is worth settling before the first shift.

What decides it

The Ombudsman lists factors that are looked at together: how much control the business has over how the work is performed, who holds the financial responsibility and risk, who supplies the tools and equipment, whether the worker can delegate or subcontract the work, how hours are set, and whether there is an expectation that the work will continue indefinitely.

Which test applies depends on the business. For constitutionally covered businesses, a whole-of-relationship test has applied since 26 August 2024, which looks at how the arrangement is carried out in practice as well as at the contract. A start-of-relationship test, which focuses on what the parties agreed, applies to state-referred businesses, which include sole traders and partnerships in several states. The terms can be written, verbal or a mix, and the Ombudsman says to check which test applies to the business engaging you.

The Ombudsman cannot decide for you whether someone is a contractor or an employee. It gives general guidance, and recommends legal advice if you need a firm answer.

Questions to ask before you agree

Who decides how and when the work is done, and can you say no to a shift without consequences? Can you send someone else, or take on other clients? Who supplies equipment, and who pays if a participant cancels at short notice? Is the work expected to continue indefinitely? Would you be treated differently from the organisation’s own employees doing the same work?

Write the answers into the agreement, and keep a copy. If the day-to-day reality drifts away from what the document says, raise it early.

Working under another provider’s registration

Some providers deliver supports through facilitation or brokerage arrangements, where an unregistered provider, a sole trader or a subcontracted worker delivers supports under another provider’s registration. The NDIS Commission says that in those arrangements the registered provider must be the one that claims payment, is responsible for all supports delivered under its registration, and must make sure everyone delivering them complies with the conditions of registration, including the Code of Conduct.

It also says these arrangements must be transparent to participants, so that they know who is responsible for delivering their supports. If you are engaged this way, ask what the provider expects of you, how you will be paid, and how incidents and complaints are handled.

Where to get advice

The Fair Work Ombudsman has information and a helpline, a registered tax agent can advise on the tax side, and a community legal centre or lawyer can review a contract. This article is general information, not legal advice.

Frequently asked questions

What is the difference between an independent contractor and an employee?

The Fair Work Ombudsman explains that independent contractors provide services to another person or business instead of being employed by them. They usually negotiate their own fees and working arrangements, can work for more than one client at a time, and do not have the same rights and obligations as employees.

How do I know whether I am a contractor or an employee?

The Ombudsman lists factors that are looked at together: how much control the business has over how the work is performed, who holds the financial responsibility and risk, who supplies the tools and equipment, whether the worker can delegate or subcontract, how hours are set, and whether the work is expected to continue indefinitely. The Ombudsman cannot decide for you, and recommends legal advice if you need a firm answer.

What should I ask before I agree to work as a contractor?

Who decides how and when the work is done, and whether you can say no to a shift without consequences. Whether you can send someone else or take on other clients, who supplies equipment, and who pays if a participant cancels at short notice. Write the answers into the agreement and keep a copy.

What changes if I work under another provider’s registration?

The NDIS Commission says the registered provider must be the one that claims payment, is responsible for all supports delivered under its registration, and must make sure everyone delivering them complies with the conditions of registration, including the Code of Conduct. These arrangements must be transparent to participants.

Keep learning

More in our NDIS updates and insights, our step-by-step guides, or the NDIS and aged care provider directory.

Official sources

Source checked 13 October 2026. Rules and guidance can change; verify current details with the responsible agency. How we write and check our guides.