From publicaccountant.com.au: The Australian Tax Office’s new guidance and recent High Court rulings clarify the distinction between employees and contractors, emphasizing the importance of the written contracts in determining worker classification.

Small businesses must carefully draft contracts to avoid tax and superannuation compliance risks, as misclassification can result in significant penalties.

Reviews of existing contracts are essential to ensure they accurately reflect the realities of working relationships and meet superannuation obligations, as even properly classified contractors may trigger superannuation responsibilities.