Gig workers

What Is a Gig Worker?

A gig worker is someone who performs short-term, contract-based, or freelance jobs—often through digital platforms or apps—rather than being employed in a traditional full-time or part-time capacity. Gig work is a central part of what’s often called the gig economy, where flexibility, independence, and on-demand labour are key characteristics.

In Australia, gig workers are common in sectors like food delivery, ride-share driving, design, consulting, cleaning, and event staffing. They may be classified as independent contractors rather than employees, meaning they don’t receive standard employee entitlements such as paid leave or superannuation (unless they meet specific legal thresholds).

🔗 Fair Work Ombudsman – Independent Contractors vs Employees

Key Characteristics of Gig Workers

• Task-based or project-based work rather than ongoing employment
• Often engaged through online platforms like Uber, Airtasker, Deliveroo, or Freelancer
• Usually paid per task or job, not hourly or salaried
• Control over hours and work schedule
• Typically responsible for their own tax, insurance, and superannuation
• May or may not work exclusively for a single company

Gig workers can range from highly skilled freelancers (e.g. graphic designers, developers) to operational on-demand workers (e.g. delivery drivers, virtual assistants).

How Gig Work Differs from Traditional Employment

Because gig workers are often legally defined as contractors, businesses engaging them do not have the same obligations as they do for employees. However, there is growing scrutiny around this model in Australia.

Legal and Regulatory Considerations in Australia

The legal status of gig workers in Australia has been the subject of debate and evolving legislation. While many are engaged as independent contractors, the Fair Work Commission has occasionally ruled that some should be reclassified as employees, depending on factors like:

• Control over work and schedule
• Level of independence
• Payment structure
• Ongoing nature of the relationship

In 2023, the Federal Government proposed reforms to better define the employment status of gig workers and ensure minimum standards, particularly regarding minimum pay, safety standards, and dispute resolution mechanisms. These reforms are part of ongoing changes under the Closing Loopholes industrial relations agenda.

Australian Government – Closing Loopholes: Protecting Gig Workers

Superannuation and Tax for Gig Workers

While gig workers are usually responsible for their own super, a contractor may be entitled to superannuation contributions if:

• They are paid mainly for their labour, and
• They perform the work personally, not through a company or partnership

The current Superannuation Guarantee (SG) rate is 11.5% (as of FY24–25), increasing to 12% from 1 July 2025.

From a taxation perspective, gig workers must:

• Apply for an Australian Business Number (ABN)
• Lodge Business Activity Statements (BAS) if registered for GST
• Declare income on their personal tax return

How Microkeeper Helps with Gig Workforce Management

If your business engages a combination of employees and gig workers, Microkeeper can simplify workforce and payroll management through:

• Separate onboarding workflows for contractors vs employees
• Timesheet and job costing tools that work for short-term and casual roles
• Automated super checks for eligible contractors
• Payroll flexibility to handle one-off payments, GST tracking, and ABN checks
• STP-exempt payment recording for non-employee contractors

FAQs About Gig Workers

Are gig workers entitled to leave?
No, not usually. They’re typically contractors and don’t receive paid leave unless a court or Fair Work decision deems them to be employees.

Can gig workers use rostering software?
Yes. Many companies use digital rosters or shift bidding tools to allow gig workers to opt in to available work.

Can a gig worker also be an employee?
Yes, but not for the same employer performing the same job. Dual classification could trigger legal or tax issues.

Final Thoughts

Gig workers are an integral part of the modern Australian workforce, offering flexibility for both businesses and individuals. But with that flexibility comes complexity, particularly around entitlements, tax, and compliance. Whether you're a business managing hybrid teams or a gig worker yourself, it’s essential to understand your rights and obligations.

Platforms like Microkeeper can help simplify this evolving space, offering tailored solutions for tracking, paying, and managing both traditional employees and on-demand contractors.

_{Disclaimer: This article is for general informational purposes only and does not constitute legal, financial, or tax advice. Please consult the Fair Work Ombudsman or your advisor for personalised guidance.}