Sham contracting
In the table below, examine 17 indicators courts and tribunals will look at when determining if a contractor actually is a contractor or an employee.
| Indicator | Suggestive of employee | Suggestive of contractor |
| 1. You have significant capacity to control and direct the manner in which the contracted work is performed. | Y | |
| 2. The worker has the right and capacity to perform work for others. | Y | |
| 3. The worker has a separate place of work and is able to advertise their services to others. | Y | |
| 4. The worker has the right to delegate or subcontract work. | Y | |
| 5. The worker is represented to be part of your business e.g. through a uniform or business cards. | Y | |
| 6. You remunerate the worker with a regular wage-type payment based on time served. | Y | |
| 7. You remunerate the worker based on and subject to completion of results. | Y | |
| 8. You can suspend or dismiss the worker. | Y | |
| 9. The worker pays their own expenses associated with work. | Y | |
| 10. The worker has an Australian Business Number (ABN) and (if applicable) is registered for GST. | Y | |
| 11. You deduct PAYG tax in relation to the worker. | Y | |
| 12. You dictate the rate you pay the worker for services. | Y | |
| 13. The fee paid to the worker for services is negotiated | Y | |
| 14. The worker can increase the profit or net return on remuneration by changing the way services are provided to you. | Y | |
| 15. The worker is paid during leave from work. | Y | |
| 16. The worker uses their own tools or equipment when providing services. | Y | |
| 17. The goodwill created by the worker’s activity is the worker’s goodwill, not the goodwill of your business. | Y |
It is important to remember that no single indicator will clearly determine a worker’s status. Employers (and employees) can attempt to arrange their taxes to unlawfully claim a contractor relationship.