A freelancer is a self-employed individual who provides services to clients—often on a project or short-term basis—without being tied to a long-term employment contract. Freelancers operate independently, offering their skills and expertise to one or multiple clients at a time, typically under a business structure such as a sole trader or through an ABN (Australian Business Number) in Australia.
Freelancers are not employees; they are considered independent contractors, which has important implications for tax, superannuation, and workplace entitlements.
📘 ATO: Employees vs. Contractors
Freelancing is especially common in industries that value project-based, creative, or technical skills. Examples include:
With the rise of digital tools and remote work, freelancing is increasingly accessible across nearly all sectors.
Freelancers are responsible for their own business and professional obligations, including bookkeeping, insurance, and compliance with ATO requirements.
⚠️ Misclassifying an employee as a freelancer (or vice versa) can lead to serious Fair Work and ATO compliance issues. Businesses must assess the relationship correctly.
In Australia, freelancers must ensure they meet all legal obligations, including:
💡 Did you know? From July 2022, businesses must ensure super is paid for contractors who are paid primarily for their labour, even if they’re invoicing via an ABN.
For businesses, engaging freelancers can provide:
For freelancers, benefits include:
Employers should draft clear service agreements that define scope, deliverables, IP rights, and confidentiality terms.
Even though freelancers aren’t traditional employees, managing their pay and integration into projects still requires attention. Microkeeper helps you:
Explore Microkeeper's Contractor Management Tools
Yes, but they should not be treated like employees. Working regular hours under company direction may suggest an employment relationship.
Yes, most freelancers need public liability and professional indemnity insurance, especially when working onsite or offering consulting services.
Generally, freelancers manage their own super. However, if your freelancer is primarily providing labour, you may be required to pay super.
Freelancers bring flexibility, agility, and deep expertise to businesses in a fast-changing economy. For workers, freelancing offers autonomy and diverse career opportunities. However, clear agreements, tax awareness, and mutual respect are crucial to making the relationship work.
Whether you’re hiring freelancers or managing contractor payments across projects, tools like Microkeeper can simplify your workforce operations and help you stay compliant.
Disclaimer: This article is for informational purposes only and does not constitute legal or financial advice. For guidance specific to your business, consult a qualified advisor or the Australian Taxation Office (ATO).