Subcontract Agreements - FAQ's

What is a Subcontractor Agreement?

Subcontract Agreements are simply agreements between a business and their subcontractors which are usually 12-month agreements signed annually.

What industries use Subcontractor Agreements?

Subcontract Agreements are usually used in the Construction Industry. Other Industries normally use Independent Contractor Agreements.

Why is it important to use a Subcontractor Agreement?

The main reason for using Subcontract Agreements is to formalise the relationship between your business and your Subcontractors which is designed to negate any potential liability.

How many Subcontractors can I use a Subcontractor Agreement for?

Generally, you can use the one Subcontract Agreement for all your Subcontractors. In most cases it the description of services being supplied which is incorporated into each Subcontract Agreement is where each Subcontract Agreement will differ. 

How long should a Subcontractor Agreement last?

Standard Subcontract Agreements are normally for a 12-month duration which of course are resigned every 12 months.  

What is a Taxable Payment Annual Reports?

A Taxable Payment Annual Report is a report required by legislation that needs to be submitted to the Australian Taxation Office by all businesses who engage Subcontractors by the 28TH of August each year.

What are Taxable Payments Annual Report used for?

Taxable Payments Annual Reports are used by the Australian Taxation Office to identify undeclared income by comparing submitted Taxable Payments Annual Reports against a business’s reported income.

What could be my potential liability?

There is approximately $172 000 000 000 in unreported income which is identified by the Australian Taxation Office each year. It doesn’t take much to imagine a Subcontractor who has been caught by the ATO using the words, “I thought I was an Employee” or “well I was wondering about that, I don’t think I can be classed as a Subcontractor”.

Who do you think will be the ATO’s next phone call?

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Any Questions?

You are welcome to email us any questions - or call to speak to a consultant.


With over 35 years’ experience Collection Consultancy Australia prides itself in offering Products and Services designed to Protect Business Assets and Cashflow. Quite often the process can start from simply making business owners aware that there is option available, through to business specific solutions and education. We are here to let business owners know that there can be a better way to secure their financial future.

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