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PurpleCat(Newbie)Newbie
4 May 2026

Hi there!


I am an Australian who has been living and working overseas for the last 6 months. I have decided to return to Australia, however, the company I have been working for are interested in me continuing to work for them remotely. The role itself will be changing as it will be going from an admin/ manager role to an admin, recruitment and onboarding position.


As the work is seasonal it will not provide consistent hours, anywhere from 15 to 38 hours per week depending on the tasks that are required to be completed. I will have full autonomy over my schedule and where and when I work, essentially arranging my schedule based on the demand of what needs to be done. I will not be reporting to anyone, the only contact I will have with other team will be occasional meetings to discuss candidates. I have not been provided with any equipment, I will use my own laptop and monitor and log in to their software for recruitment and admin tasks.


I will only be needed until most likely February. They are also willing to pay an agreed monthly sum regardless of how many hours I work and have said I can invoice them for this. They want me in this position as they have no staff available and it would be very difficult to find someone in Japan who already has an intimate knowledge of their business operations and customers needs.


They have requested for me to get an ABN and work for them as an independent contractor. While most of what I am doing feels that it fits under the contractor heading, my prior connection to the company as well as them offering to pay an agreed monthly sum (even though I would invoice them) feels convoluted so I am unsure whether being a contractor for them would be wrong from a tax perspective.


Any guidance would be greatly appreciated.

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1 replies
22 views
1 replies

All replies

KaraATO(Community Support)Community Support
6 May 2026

Hey @PurpleCat,


The distinction between employee and contractor can be complex, particularly when there are factors pointing both ways.


Working out if you're a contractor or employee depends on the working arrangement, not just on having an ABN or invoicing. The key factors we look at include:

  • the degree of control over how work is done
  • whether you can delegate the work
  • who provides the tools and equipment, and
  • how integrated you are into the business.

The monthly payment arrangement doesn't automatically make you an employee, but it's less typical for genuine contracting work, which is usually based on:

  • hours worked
  • projects completed, or
  • specific deliverables.

You can still invoice for a monthly amount as a contractor if that's what you've agreed.


You'll also need to work out your tax residency when you return to Australia, as this affects how you're taxed. If you're an Australian resident for tax purposes working remotely for a foreign employer, you're taxed on worldwide income and need to complete an Australian tax return.


You may also need to consider if you should register for GST, depending on your expected income.


If you're still unsure after reviewing the info, you:

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Am I considered a contractor or employee? | ATO Community