Contractor vs Employee: NDIS Support Workers

2027-01-22 | By Sarah Jenkins, CPA

Many NDIS agencies try to hire all staff as "Independent Contractors" (ABN workers) to avoid paying Super, Leave, and WorkCover. This is extremely risky.

The "Whole of Relationship" Test

Since August 2024, the definition of employment has tightened. Even if you have a written contract stating "Independent Contractor," the courts look at the reality:
- Control: Do you set the roster? (Employee indicator)
- Uniform: Do they wear your logo? (Employee indicator)
- Delegation: Can they send someone else to do the shift? (Contractor indicator)

The Risk

If the ATO or Fair Work decides your contractors are actually employees, you will be liable for unpaid Superannuation (plus penalties), unpaid Annual Leave, and back-pay for SCHADS award rates.

Super for Contractors: Even true contractors must be paid Superannuation if they are paid "principally for their labour."

Are you at risk?

We help agencies structure their workforce correctly to minimize "Sham Contracting" risks.

Workforce Structuring