Free tool
Sham Contracting Self Test
SHAM CONTRACTING SELF-TEST
Engaged with an ABN but you suspect you're really an employee? Run the 12-factor totality-of-relationship test. Based on the post- Personnel Contracting [2022] HCA framework + 2024 Closing Loopholes definitions. Sham contracting penalties: up to A$99,000 per contravention for individuals, A$495,000 for body corporates.
Tick every factor that applies to your situation
Borderline — fact-specific
50% employee indicators
Your situation has indicators on both sides. The test under CFMMEU v Personnel Contracting [2022] HCA 1 looks at the TOTALITY of the relationship including the contract terms. A borderline case requires legal advice — the outcome depends on facts that aren't fully captured by a 12-question quiz. Get a 30-minute employment-lawyer consultation (A$200-A$400) before deciding to act.
If you suspect sham contracting
- Document the relationship: invoices, work patterns, communications, who provides what equipment.
- Lodge an unpaid super enquiry with the ATO (separate process from FWO).
- Lodge a Fair Work Ombudsman online tip-off (anonymous option). FWO has substantial sham-contracting enforcement priority.
- For large amounts or complex matters: get an employment lawyer involved.
- Use Contractor or Employee Check for the more detailed test.