What does it mean when I am asked to provide an ABN before commencing work?

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.

All information provided on this webpage is general information about our products and services. Nothing on this webpage is intended to be professional advice of any kind and should not be relied on as such. You should obtain specific financial, legal or other professional advice before relying on the content of this webpage. By not seeking such advice, you accept the risk that the information on this webpage may not meet the specific needs of your business. Our liability is limited to the maximum extent permitted by applicable law in accordance with our website terms and conditions.

Updated — Mar 14, 2019

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