Independent contractors run their own businesses and are their own boss. They are also sometimes called freelancers, self-managed artists, independent artists, sole traders or contractors.
The work can include:
- creating work for others (including commissions)
- selling their work
- performing
- being contracted to exhibit their work
- providing services
- licensing their work (i.e. giving permission for their artwork to be used by someone else in exchange for royalties or a flat fee).
Independent contractors usually have their own Australian Business Number (ABN). They invoice their client to get paid.
Independent contractors can work for more than one client at a time. Clients can be businesses or organisations, other independent contractors, or individual members of the community (e.g. a private commission, or a private celebration).
Independent contractors:
- have control over how they run their business
- decide how they do the work
- can delegate or subcontract work to other people
- are often responsible for paying their own insurance
- carry the financial responsibility and risk related to their work.
Learn more about setting up as an independent contractor.
We also have lots of information for independent contractors, including:
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Independent contracting versus employment
It is important to understand the difference between independent contractors and employees to make sure you are using the right work arrangement.
Engaging someone as an independent contractor when, in practice, they are an employee, can be sham contracting. Sham contracting is illegal.
There are different legal tests and definitions that apply when deciding whether someone is an independent contractor or an employee. This includes looking at how somebody is working in practice, despite what might be in a contract.
Generally, somebody is likely to be an independent contractor or employee if several of these features apply:
| Independent contractor | Employee |
|---|---|
| Carries the financial responsibility and risk for their work | Financial responsibility is with the business of the employer |
| Decides how the work or service is to be done, including what hours may be necessary | Follows control and direction from the employer in what, when and how work is to be done |
| Sends invoices to get paid | Receives a wage or salary |
| Supplies their Australian Business Number (ABN) | Gives the employer their tax file number (TFN) |
| Can work for other people at any one time | May be restricted in working for someone else |
| Can delegate or sub-contract work | Uses the employer’s resources or seeks employer approval to engage outside help |
| Supplies their own equipment to do the work | Relies on the employer to supply the equipment |
Where a relationship has a mix of these features, it can be tricky to decide whether someone is an independent contractor or employee. It can be a good idea to get advice if you’re not sure.
Learn more about employment relationships.
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More in this section:
Working out fees, payment and pricing
Self-employed artists and arts workers get to decide what price they will accept for their work. There are a few things to consider when working out the right price.
Rate guides
There are recommended minimum rates and fees for independent contractors for various types of art and arts work. They provide benchmarks for what might be considered fair and reasonable.
NSW and Qld performers and agents
In Queensland and NSW there are rules about how agents and managers pay and protect performers
