Independent Contractor Agreement

Betweenand

1.
The parties and the engagement
This agreement is made between ________, ABN ________ (we, us, our) and ________, ABN ________ (you, your). We engage you to provide the services set out below, starting on ________. The engagement is due to finish on _
2.
The work
You agree to provide the following: ________ You agree to do the work to a proper trade or professional standard, to comply with any law, code, standard or licence that applies to it, and to hold and keep current every
3.
You are an independent contractor, not an employee
You provide the services as an independent business. This agreement does not create employment, a partnership or an agency. You are not entitled to annual leave, personal leave, long service leave, paid public holidays,
4.
Tax, GST and superannuation
You are responsible for your own income tax, GST, and your own insurances. You will invoice us with a valid tax invoice, quoting your ABN, and you will notify us if your GST registration changes. We will not withhold PAY
5.
Invoicing and payment
We will pay you ________ on the basis of ________, plus GST where it applies. You will invoice us at the end of each job or each month, whichever comes first, with enough detail for us to check the work and the amount.

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Independent Contractor Agreement

$89 one-off, GST included

The agreement you use when you pay someone with an ABN to do work for you, not an employee. It sets the rate, the invoicing, the insurance and the safety rules, and it spells out the things that make someone a contractor rather than staff. It also tells you where superannuation can still apply, because that one catches people.

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Use it when

You are paying your first helper and they invoice you with an ABN
You put on a subcontractor for a job and need the terms and the insurance nailed down
You want the difference between a contractor and an employee written down properly
Your accountant asked whether you owe superannuation on your contractors

Not for

Hiring an employee, that needs an employment contract under the Fair Work Act.

What it covers

1.
The parties and the engagement
Names both businesses with both ABNs and makes clear there is no guaranteed roster, which is what a contractor arrangement looks like.
2.
The work
You are buying a finished result to a standard, and their licences are their responsibility to keep current.
3.
You are an independent contractor, not an employee
The control, the freedom to work elsewhere and the right to delegate are what a court or the ATO actually looks at, so they are written down here.
4.
Tax, GST and superannuation
An ABN does not switch off superannuation, so this says out loud that you will pay it where the labour test applies.
5.
Invoicing and payment
A clear rate and a real payment date, and a dispute over one line does not let either side sit on the whole invoice.

Show all 14 clauses

6.
Insurance and safety
Uninsured help is the fastest way to lose your business, so cover and safety duties are checked before they start.
7.
Tools and equipment
Who owns the tools is one of the tests, and lending gear needs a return obligation attached to it.
8.
Confidential information and our clients
Protects the client list you paid to build without trying to stop them earning a living, which is what makes a restraint hold up.
9.
Who owns the work
The work you paid for is yours, including the photos, which matters the day you want to use them in marketing.
10.
Fixing problems with the work
They get a fair chance to fix their own work before you bring in someone else and charge it back.
11.
Ending this agreement
Both sides can walk on the same notice, and losing insurance or a licence ends it on the spot.
12.
If we disagree
Talk, then mediation, then court, and it does not block a statutory payment claim.
13.
Governing law
Sets your state's law and admits that laws you cannot contract out of still win.
14.
The whole agreement
Kills the argument that starts with a screenshot of a text message from three months ago.

You will be asked for

Your business name, Your ABN, Your state or territory, Contractor name, Contractor ABN, The work they will do, Start date, End date, How they are paid, The rate or price, Days to pay their invoice, Public liability cover they must hold, Anything you supply, May they send someone else to do the work, Notice to end the agreement, in days. Takes about five minutes.

Written for: First hire, Trades, Service business, Consultant or agency. Version 1, updated 2026-09-18. You get PDF and Word, and any update to this document for 12 months.

Legitkit provides document templates and general information, not legal advice. Legitkit is not a law firm and does not employ lawyers. Documents are written for the general run of Australian small businesses and may not suit your situation. For advice on your situation, see a lawyer.

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