If I hire trades directly, are they contractors or employees?

An ABN, invoice or the label 'contractor' does not decide a worker's legal status. Employment, tax, superannuation and workers compensation can apply different tests. Some contractors can be treated as workers for particular purposes, subject to the relevant rules and exceptions. Before directly engaging labour, obtain advice about the arrangement, insurance and payment obligations. If you have a head builder, confirm who engages the workers. Check workers compensation with the authority for your state or territory.

Official sources:

• FWO Contractors in building and construction
• ATO Super for independent contractors
• SWA Regulator and workers compensation directory

General information only. Requirements vary by state or territory and change over time, so check the current rules for your location.