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  • #1000375
    • Total posts: 6

    Hello All,

    Hoping everybody is staying well in the new COVID world.

    I am engaging a student with my company who lost his job due to Pandemic. The student has an ABN and I am advised by my accountant engaging anybody with the ABN is the better option vs Employer-employee relationship ( Casual or Fulltime ). I agree with him due to liability comes with the employer – employee relationship.

    Just wondering:-
    1) If I still need to get the 100 point ID check from the candidate/student?
    2) Is it mandatory for the student to have his own insurance ( as such it is work from home job) ?
    3) The nature of work is not fixed hours but on-demand – what’s the best way to pay the student?


    Paul – FS Concierge
    • Total posts: 3,121

    You might need to check back with your Accountant arounf=d the term Personal Services Income.

    In the meantime, here is a decent starting point:


    As a contractor, you would generally ask for an insurance certificate of currency and ask the contractor invoice you.


    • Total posts: 4,472

    I would go back to your accountant.

    But I would also drill him/her as to if this person is really a contractor or is actually considered an employee. Because it depends on the nature of the working arrangement how the ATO and others view it.

    • Total posts: 210

    Look up sham contracting. If the arrangement looks and smells like an employee-employer relationship, it probably is.


    There are penalties that apply to misconduct in this area, so tread carefully and seek professional advice.

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