Independent Contractor Definition

An independent contractor is a person who provides services to another person or business under terms specified in a contract. An independent contractor is not an employee of the person or business they provide services to. The key difference between an independent contractor and an employee is that an independent contractor is not subject to the control or direction of the person or business they provide services to, as they would be if they were an employee.

Independent contractors are responsible for their own taxes and superannuation contributions. They are also entitled to charge GST on the provision of their services, unless they are providing services to a consumer.