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Sub-Contractor Agreements define

Sub-Contractor Agreements define the difference between a Subbie or employee.  It otherwise can be hard to define.  Firstly, SCA’s define the difference and without this the ATO may see it differently. Many businesses don’t use SCA’s.  This opens up the issue of a sub contractor being an employee.  By not having an SCA, you run the danger of that relationship being employer-employee.  

Firstly, if the documentation is not there, is it a subbie or employee.  This then obligates the contractor to put in place work cover, superannuation and annual leave entitlements.

By agreeing that a relationship is contractor to sub contractor is not guaranteed.  Finally, documentation is required and clauses and conditions attached.
All you need to know about Sub-Contractor Agreements (SCA) is in the CCA video. 

Four Tips for Effectively Managing Subcontractors

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