Wrong. Contractors are required to meet tax and other statutory obligations just like every other taxpayer; they simply have more control and responsibility over their taxation affairs compared to other workers.
Be Contractor Ready.
- An employee has income tax deducted by their employer
- An independent contractor pays their own tax and GST to the Australian Taxation Office
- Independent contractors pay the same rate of income tax as other workers.
- Taxpayers who don’t meet their tax obligations may be liable to penalties or interest charges, or both.
- Some businesses falsely assume that certain taxes don’t apply when engaging contractors, it pays to check the legislation.
Disclaimer: This information does not constitute advice as we are unable to consider your individual circumstances.