Engaged with an ABN but suspect you're actually an employee? Run the 12-factor test based on Personnel Contracting [2022] HCA + 2024 Closing Loopholes. Get a scored verdict + recoverable entitlements.
Last verified: 16 May 2026SHAM 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.
Sham contracting is when an employer disguises employment as independent contracting to avoid paying entitlements. Learn the multi-factor test, penalties (up to $469,500), how to report it, your entitlements if reclassified, and the new employee-like worker reforms.
Contractor vs Employee Australia 2026: How to Classify Workers CorrectlyHow to correctly classify workers as contractors or employees in Australia in 2026. Covers the ATO multi-factor test, sham contracting indicators, penalties for misclassification, super obligations, recent court cases, and a practical checklist for employers.
Contractor vs Employee Australia — How to Tell the DifferenceLearn how to determine if you're an employee or independent contractor in Australia. The ATO multi-factor test, sham contracting laws, and how to challenge misclassification.
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