If you are asked to provide an ABN prior to the commencement of work; generally, this means you are being ask to work as an independent contractor.
Doing so, will mean that you do not receive the same benefits as an employee. This can include:
- Not being paid superannuation by the employee
- May not be protected under the workers compensation insurance meaning you will have to obtain your own insurance.
- The employer will not withhold tax from your pay, meaning you will have to make your own tax payments to the ATO.
If you are unsure if this method of engagement is right for you, please contact an accountant or lawyer for further advice.
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Updated — Mar 14, 2019