Contractor Offer / Engagement Letter (Australia)

Create a legally compliant Independent Contractor Agreement for Australia. Covers ABN requirements, sham contracting protections, GST, IP ownership, WHS obligations, and the multi-factor contractor test under Fair Work Act 2009. Suitable for all states and territories including NSW, VIC, QLD, WA, SA, and ACT.

A Consulting Agreement (also called a Consulting Services Agreement or Consultancy Agreement) is a legally binding contract between a client (a business or individual engaging consulting services) and a consultant (an independent contractor or consultancy firm providing professional advisory services). The agreement sets out the scope of work, fees, payment terms, intellectual property ownership, confidentiality obligations, and the basis on which the consultant is engaged as an independent contractor rather than an employee. In Australia, Consulting Agreements must carefully address the legal distinction between an independent contractor and an employee. The Independent Contractors Act 2006 (Cth) provides a framework protecting the rights of independent contractors and limits the ability of state and territory laws to regulate contracts for services. However, the Fair Work Act 2009 (Cth) prohibits sham contracting under sections 357 to 359 -- that is, misrepresenting an employment relationship as an independent contractor arrangement to avoid employer obligations such as superannuation, annual leave, and workers compensation. A well-drafted Consulting Agreement that reflects the genuine commercial reality of the relationship is essential to avoid sham contracting findings. GST is a critical consideration. If the consultant is registered for GST under the A New Tax System (Goods and Services Tax) Act 1999 (Cth), they must charge GST (currently 10%) on their consulting fees and issue valid tax invoices. Tax invoices must include the supplier's name and ABN, a description of the services, the GST-exclusive amount, the GST amount, and the total GST-inclusive amount. Clients who are registered for GST may claim input tax credits for the GST they pay on consulting fees, subject to the usual input tax credit rules. Superannuation obligations may apply even where the consultant is an independent contractor. Under the Superannuation Guarantee (Administration) Act 1992 (Cth), superannuation guarantee contributions are generally required for workers engaged under a contract that is wholly or principally for the labour of the person. Businesses should seek specialist tax and employment law advice regarding superannuation obligations for their specific engagement arrangements. A Consulting Agreement should also clearly address intellectual property (IP) ownership. Under the Copyright Act 1968 (Cth), the default position is that the creator of original works owns the copyright. This means that in the absence of a specific IP assignment or licence clause, a consultant may retain ownership of any work product, reports, or materials they create for the client. The agreement should expressly assign or licence all work product IP to the client, or clearly state which party owns what. This template is designed for use in all Australian states and territories and covers all key elements of a professional Consulting Agreement compliant with Australian law, including the Independent Contractors Act 2006, the Fair Work Act 2009, GST, and IP provisions under the Copyright Act 1968.

Create a professionally drafted Consulting Contractor Agreement for Australia that combines advisory consulting with project-based contractor delivery in a single hybrid engagement document. This agreement is designed for engagements where the same person or entity provides both strategic advisory input and delivers tangible project outputs — such as reports, strategies, systems, software, or other milestone deliverables — against a defined project schedule. A hybrid consulting-contractor arrangement is increasingly common in Australia for digital transformation projects, technology implementations, organisational change programs, and complex operational improvement initiatives. The engagement has two dimensions: first, the strategic advisory dimension (providing expert guidance, facilitating workshops, making recommendations, and advising on approach); and second, the project delivery dimension (producing defined outputs, completing milestones, and delivering tangible work product). A single well-drafted agreement that addresses both dimensions eliminates the risk of ambiguity and fee disputes. The milestone-based payment structure is a central feature of this template. Under Australian law, milestone payments tied to defined deliverables strongly support genuine independent contractor status. The High Court in CFMMEU v Personnel Contracting Pty Ltd (2022) 275 CLR 165 and ZG Operations Australia Pty Ltd v Jamsek (2022) 275 CLR 254 clarified that the terms of the written contract — not the parties' subsequent conduct — are the primary test for whether a worker is an employee or contractor. A contractor who is paid for producing a result (a milestone deliverable) rather than for time worked is far less likely to be characterised as an employee. This template structures the engagement around milestone acceptance, milestone payment, and a clear project scope — all of which are strong indicators of genuine contractor status under the multi-factor test. Sham contracting is a critical risk for hybrid consulting-contractor arrangements. The sham contracting provisions in Part 3-1, Division 6 of the Fair Work Act 2009 (Cth) prohibit a business from misrepresenting an employment relationship as a contractor engagement. Since 27 February 2024, maximum civil penalties increased five-fold to $469,500 per contravention for a body corporate. Where the contractor works on a project basis, sets their own methods, brings their own tools and expertise, works for multiple clients, and is paid for outcomes rather than time, the genuine contractor indicators are strongest. GST compliance is addressed in full. Consulting contractors with GST turnover of $75,000 or more per year must register for GST under the A New Tax System (Goods and Services Tax) Act 1999 (Cth), must issue valid tax invoices for each milestone payment, and must charge GST of 10% on their fees. The engaging party (Principal) may claim an input tax credit on the GST component of payments made. Intellectual property in deliverables is addressed explicitly. Under the Copyright Act 1968 (Cth), copyright in works created by an independent contractor vests in the contractor by default. If the Principal requires ownership of project deliverables — including reports, frameworks, software, and other outputs — this must be expressly agreed in the written contract. Background IP (the contractor's pre-existing methodologies, tools, and frameworks) is retained by the contractor regardless of the IP ownership arrangement for project deliverables. This template is suitable for use across all Australian states and territories and is compliant with the Fair Work Act 2009, Copyright Act 1968, GST Act, Work Health and Safety Act 2011, and the Australian Consumer Law.

Create a legally compliant Subcontractor Agreement for the Australian building and construction industry. Covers Security of Payment Act rights, payment claims, adjudication, retention, defects liability, variations, WHS obligations, public liability and workers' compensation insurance. Suitable for all states and territories.

Protect your confidential business information under Australian common law with a legally sound Non-Disclosure Agreement (NDA). Whether you are sharing trade secrets with a prospective partner, disclosing proprietary technology to a developer, or presenting financial projections to a potential investor, a properly drafted Australian NDA keeps your sensitive information under strict legal protection. Our template complies with Australian contract law principles and includes provisions addressing the Privacy Act 1988 (Cth) and the Australian Privacy Principles.