Free Australian Contract Templates

Frequently asked questions

Do I need a written contract with an independent contractor in Australia?+

There is no statute requiring written contracts for independent contractors in Australia, but a written agreement is strongly advisable. Under the Closing Loopholes No.2 Act 2024 (in force 26 August 2024), the whole-of-relationship test means the Fair Work Commission looks at the practical reality of the arrangement — a detailed written contract outlining ABN, fee-for-service structure, genuine substitution rights, and the absence of a firm advance commitment to ongoing work provides the best documentary evidence that the working arrangement is genuinely independent. Without a written contract, disputes about classification, IP ownership, and payment terms must be resolved by conduct alone.

What is the difference between an employee and independent contractor in Australia in 2026?+

From 26 August 2024, under the Fair Work Act (as amended by the Closing Loopholes No.2 Act 2024), classification is determined by the whole-of-relationship test — the practical reality and true nature of the arrangement, not just the contract label. Relevant indicators include: degree of control over how work is performed, ability to subcontract or delegate, who provides tools and equipment, and risk of profit and loss. A worker earning above the contractor high income threshold ($183,100 for 2025–26, indexed annually) can opt out of contractor protections by written agreement. Workers below that threshold may challenge unfair contract terms in the Fair Work Commission, even if classified as independent contractors.

How does Payday Super affect contractor agreements?+

Payday Super applies to employees, not true independent contractors. From 1 July 2026, employers must pay 12% super on every payday, with contributions reaching the fund within 7 business days. Independent contractors operating through their own ABN are responsible for their own super — the 12% Payday Super obligation does not apply. However, if a contractor is misclassified and later found to be an employee, the engaging party faces back-payment obligations plus penalties of up to 200% of the unpaid super guarantee charge. Contractor agreements should include an explicit clause confirming the contractor's responsibility for their own tax, super, and ABN obligations — all our AU contractor templates include this clause.

Does the Privacy Act apply to my freelance business in Australia?+

From 1 July 2026, the Privacy Act 1988 applies to a significantly broader range of small businesses. Professionals in real estate, legal services, accounting, conveyancing, and precious metals trading must now comply regardless of annual turnover. The Privacy and Other Legislation Amendment Act 2024 (POLAA 2024) also introduced a statutory privacy tort — individuals can now sue for serious invasions of privacy. If you collect, store, or share a client's personal information in the course of your work, your contracts should include data collection disclosures, retention periods, deletion obligations, and — where you process data on behalf of a client — a data processing clause consistent with the Australian Privacy Principles.

Who owns copyright in work created by a freelancer in Australia?+

Under the Copyright Act 1968, copyright in work created by a genuinely self-employed freelancer vests in the freelancer upon creation — the client does not own the work simply by commissioning and paying for it. A written IP assignment signed by both parties is required to transfer ownership (s.197). The key exception is s.35(5), which applies specifically to photographs, portraits, and engravings commissioned for valuable consideration — in that case, copyright vests in the commissioner (the client) by default, and photographers need a written agreement to retain or reclaim it. Our AU freelance, IC, and photography templates include full assignment, licence-only, and background IP carve-out options.

Are non-compete clauses enforceable in Australia in 2026?+

Non-compete clauses remain enforceable in Australia in 2026 but must satisfy the common law restraint of trade doctrine — they must be reasonable in scope, duration, and geographic reach to protect a legitimate business interest. Courts apply a "blue pencil" test and will sever unreasonable provisions rather than void the entire clause. No statutory ban is in force. The Australian government announced a proposal to ban non-competes for workers earning below the contractor high income threshold (~$183,100), with Treasury consultation completing in September 2025 and legislation expected in 2027. Non-solicitation clauses (restricting solicitation of clients or staff) remain unrestricted. Our AU contractor and freelance templates omit non-compete clauses and include narrowly drafted non-solicitation clauses only.