Australia’s Gig Economy Laws 2024–2026: What Every Freelancer Must Know About Employee-Like Worker Status

This article is provided for informational and educational purposes only. It does not constitute legal, tax, or financial advice. Employment laws, tax thresholds, and regulatory requirements change regularly — often on 1 July each year. All figures in this guide (wage rates, income thresholds, withholding percentages, GST thresholds, and superannuation rates) must be independently verified against the official sources linked throughout this article before making any business, financial, or legal decisions. Always consult a registered tax agent, employment lawyer, or industrial relations specialist regarding your specific circumstances. Data and legal changes move quickly — treat every number below as a starting point for your own verification, not a final answer.

Last Updated: July 2026 | Originally published October 2025 | Reviewed by the jobbers.io editorial team

Australia’s workplace landscape underwent a seismic shift in 2024 with legislation that redefined the rights of gig economy workers. From 26 August 2024, gig economy and road transport delivery workers have been captured under the definition of an “employee-like” worker, giving the Fair Work Commission (FWC) power to order digital labour platforms to provide fair minimum standards and safe working conditions.

Nearly two years on, enforcement continues to deepen: the Deactivation Code is in full effect, a landmark industry-wide proposal from Uber Eats, DoorDash and the Transport Workers Union is before the Commission, and the FWC’s 2026 Annual Wage Review has just delivered a fresh set of updated rates effective 1 July 2026. This guide examines what these changes mean for Australia’s freelancers, how the laws work today, who they affect, and how independent professionals can navigate this regulatory landscape.

Understanding the Legislative Revolution

The Fair Work Amendment: What Changed?

In February 2024, Federal Parliament passed the Fair Work Legislation Amendment (Closing Loopholes No. 2) Act 2024, introducing a new category of worker sitting between traditional employees and independent contractors: employee-like workers.

Workers who rely on digital platforms for a substantial portion of their income — but who don’t fit the traditional definitions of employee or independent contractor — are covered under provisions that make them eligible for minimum standards set by the Fair Work Commission, along with access to tailored dispute resolution mechanisms.

Key Timeline (updated July 2026)

• February 2024: Legislation passed by Federal Parliament
• 26 August 2024: Employee-like worker provisions commenced
• 26 February 2025: Deactivation Code came into full effect
• 1 January 2025: Intentional wage underpayment (wage theft) became a criminal offence
• 1 July 2025: Contractor high income threshold rose to $183,100; National Minimum Wage rose to $24.95/hour; Superannuation Guarantee rose to 12%
• November 2025: Uber Eats, DoorDash and the Transport Workers Union made a joint submission to the FWC proposing an industry-wide Minimum Standards Order for on-demand food delivery, including a proposed minimum safety-net rate of $31.30/hour from 1 July 2026
• 2 June 2026: FWC handed down its Annual Wage Review 2026 decision — a 4.75% increase to award and minimum wages
• 1 July 2026: National Minimum Wage increased to $26.44/hour ($1,004.90/week); contractor and employee high income thresholds increased to $190,100; Payday Super rules commenced, requiring employers to pay super at the same time as wages
• 2026 ongoing: FWC still deliberating the food and beverage delivery Minimum Standards Order application (MS2024/3) and related applications (MS2024/1, MS2024/2); no order has been finalised as of this update

Important note: As of July 2026, the FWC’s own case pages confirm that no Minimum Standards Orders have yet been made for any sector — the Uber Eats/DoorDash/TWU proposal and the other MS2024 applications remain before the Commission. Always check the Fair Work Commission’s MS2024/1–3 case page for the current status before relying on any specific figure or start date.

Why This Legislation Was Necessary

The push for reform followed years of documented exploitation in the gig economy. A Transport Workers Union survey in mid-2024 found many food delivery workers earning well below the minimum wage after expenses. The National Minimum Wage has since increased twice — to $24.95/hour from 1 July 2025, and to $26.44 per hour, or $1,004.90 per week, from 1 July 2026, following the FWC’s 2026 Annual Wage Review 4.75% increase (source: Fair Work Ombudsman). Casual employees receive a further 25% loading, bringing the casual minimum rate to $33.05/hour.

The Transport Workers Union has reported worker fatalities in the delivery gig economy since it began in Australia around 2017, with dependants historically receiving no workers’ compensation because such benefits applied only to employees. According to the Australian Council of Trade Unions, more than 250,000 gig economy workers previously had no access to minimum wage protections, paid sick leave, annual leave, superannuation, or job security.

Who Is Affected: Understanding Employee-Like Workers

The Definition of Employee-Like Workers

Not all freelancers are affected. The legislation specifically targets employee-like workers who perform work through digital labour platforms. A contractor will only be an employee-like worker if they meet the definition, which requires having 2 or more of the following characteristics:

1. Low bargaining power in negotiations regarding their services contract
2. Receives the same or less pay than an employee would get for comparable work
3. A substantial portion of their work is performed through a digital platform
4. Works under conditions similar to employment despite being classified as a contractor

According to the Fair Work Ombudsman, the services contract must also have a “constitutional connection” (for example, the contract could be between the worker and a constitutional corporation).

Who This DOES Apply To:
✅ Food delivery riders (Uber Eats, DoorDash)
✅ Rideshare drivers (Uber, DiDi, Ola)
✅ Care economy workers through digital platforms
✅ Road transport contractors under certain conditions
✅ Other digital platform workers who meet the criteria

Who This DOES NOT Apply To:
❌ Traditional freelancers working directly with clients (not through platforms)
❌ Independent contractors with strong bargaining power
❌ High-income contractors earning above the contractor high income threshold, which is $190,100 from 1 July 2026 (up from $183,100 — verify the current figure at fwc.gov.au)
❌ Freelancers using platforms like jobbers.io that facilitate connections but don’t dictate terms or process payments

Important Distinction: Platforms that simply connect freelancers with clients and allow direct negotiation of terms do not create employee-like relationships, because they don’t control the work, set rates, or manage the working relationship. The Fair Work Ombudsman’s page on regulated workers provides the definitive guidance on this distinction.

New Rights and Protections for Employee-Like Workers

1. Minimum Standards Orders

The Fair Work Commission has the power to create Minimum Standards Orders (MSOs) that establish baseline conditions for employee-like workers. As of July 2026, the FWC has not yet made a decision on any of the pending applications, which include MS2024/1 (last-mile package delivery), MS2024/2 (road transport contractors), and MS2024/3 (on-demand food and beverage delivery). The MS2024/3 case now incorporates the joint industry proposal from Uber Eats, DoorDash and the TWU, which — if approved — would introduce a minimum safety-net rate of $31.30/hour from 1 July 2026, rising again from 1 January 2027. These processes involve extensive stakeholder consultation under Fair Work Act ss 536KAA–KAE before any order is finalised.

MSOs can include terms about: payment rates and methods; permitted deductions; insurance requirements for platforms; record-keeping obligations; consultation processes; cost recovery mechanisms; and representation rights.

What Cannot Be Included: Minimum Standards Orders cannot include rostering provisions, overtime provisions, or requirements that would create “unreasonable adverse impacts” on the national economy or business viability. This limitation preserves the flexibility many gig workers value.

2. Protection from Unfair Deactivation

Since 26 February 2025, digital labour platforms must comply with a Deactivation Code that mandates:

• ✅ Advance warnings before account suspension
• ✅ Human contact options (not just automated systems)
• ✅ Right to challenge deactivations through a fair process
• ✅ Clear reasons for deactivation
• ✅ Appeal mechanisms with actual review

The code applies to workers who have consistently relied on platform work on a regular basis for at least six months, and who are removed for reasons related to conduct or capacity. Eligible workers must earn below the contractor high income threshold and must apply to the Commission within 21 days of the deactivation. See: Fair Work Commission — Unfair deactivation for regulated workers.

3. The Uber Eats / DoorDash / TWU Proposal (Pending FWC Approval)

In November 2025, Uber Eats, DoorDash and the Transport Workers Union made a joint submission to the Fair Work Commission proposing industry-wide minimum standards for on-demand food delivery — the first proposal of its kind under the new framework. It would introduce a minimum safety-net hourly rate, mandatory accident insurance, pay transparency, and improved dispute resolution and representation rights. As of this update, the proposal remains before the Fair Work Commission and has not been formally approved; always check the FWC’s MS2024/3 case page for the latest status before relying on any proposed rate.

4. Collective Bargaining Rights

The laws empower platform operators and unions representing employee-like workers to negotiate collective agreements covering terms and conditions, payment structures, work allocation methods, dispute resolution processes, and safety standards.

Limitation: Individual workers do not have the right to collectively bargain as a group — only registered unions can negotiate on their behalf.

5. Dispute Resolution Access

Employee-like workers can file disputes with the Fair Work Commission regarding unfair deactivation, minimum standards violations, payment disputes, and safety concerns. Civil penalties apply for breaches of Minimum Standards Orders, enforced by the Fair Work Ombudsman.

The Market Context: Australia’s Growing Freelance Economy

By the Numbers

• $213.2 million: Estimated market size in 2023 (Grand View Research)
• $611.1 million: Projected market size by 2030
• 16.2% CAGR: Compound annual growth rate forecast 2024–2030
• 4.1 million: Australians engaged in some form of freelance work
• Over 33%: Approximate share of the Australian workforce that freelances

Data caveat: Market size estimates vary by methodology and source and were compiled from third-party market research as of 2023–2024. Always verify current figures against primary research reports before citing them professionally.

Why Freelancing Continues to Boom in Australia

1. Strong digital infrastructure: Reliable internet and technology adoption
2. Favourable time zones: Overlap with Asian and some US business hours
3. High skill levels: A substantial proportion of freelancers are under 40 and highly educated
4. Post-COVID normalisation: Remote work is now mainstream across most industries
5. Autonomy preference: Workers seeking flexibility and greater control over their careers
6. Cost advantages for businesses: Companies reducing overhead through project-based engagements

How to Determine Your Worker Classification

Step 1: Assess Your Working Arrangement

About the Platform:

• Do you work through a digital labour platform or app?
• Does the platform set your rates or take a percentage of each job?
• Does the platform control how you perform the work?
• Can the platform deactivate you at will?

About Your Bargaining Power:

• Can you negotiate your pay rates directly with clients?
• Can you refuse jobs without penalty?
• Do you have input into terms and conditions?
• Can you work for competing platforms simultaneously?

About Your Income:

• Is this platform a substantial source of your total income?
• Do you earn less than comparable employees?
• Is your annual income below the contractor high income threshold ($190,100 for 2026–27)?

Step 2: Compare to Employee-Like Worker Criteria

If most of the following apply to you, you may be an employee-like worker:

• ✓ I work primarily through a digital platform
• ✓ The platform sets my pay rates
• ✓ I have little ability to negotiate terms
• ✓ I earn less than $190,100 annually (verify current threshold at fwc.gov.au)
• ✓ This platform is my main income source
• ✓ I could have been deactivated without fair process prior to February 2025

For a definitive determination, use the Fair Work Ombudsman’s independent contractor resources or seek professional legal advice.

Step 3: Understand the Implications

If you ARE an employee-like worker: You’re entitled to minimum standards protections; you can dispute unfair deactivation; you may be covered by collective agreements; the platform must follow the Deactivation Code; and you have access to Fair Work Commission dispute resolution.

If you are NOT an employee-like worker: You remain an independent contractor; you need an ABN (Australian Business Number); you’re responsible for your own tax and superannuation; you have full contractual freedom; and you can work on platforms like jobbers.io with zero commission on completed transactions.

Tax Obligations: What Every Freelancer Must Know

The ABN Requirement

Whether or not you’re classified as an employee-like worker, if you’re earning freelance income in Australia you generally need an Australian Business Number (ABN).

⚠️ Critical Fact — Verify with the ATO: Without an ABN, clients are generally required to withhold the top rate of tax (currently 47%, combining the 45% top marginal rate and the 2% Medicare Levy) from payments exceeding $75 (excluding GST). Always confirm the current withholding rate directly with the Australian Taxation Office.

According to the ATO, an ABN:

• Is free to obtain
• Is required for invoicing B2B clients
• Is necessary for GST registration
• Enables tax deduction claims
• Demonstrates your business legitimacy

How to Get an ABN:

1. Visit the Australian Business Register (abr.gov.au)
2. Complete the online application (typically takes 10–15 minutes)
3. Most applicants receive an ABN instantly or within a few business days

GST Registration

You must register for Goods and Services Tax (GST) when your annual turnover reaches or is expected to reach the registration threshold. This threshold has remained $75,000 for most businesses ($150,000 for non-profit organisations) since GST began in 2000. Always verify the current figure with the ATO’s GST registration page — rules and exceptions (such as for taxi and rideshare drivers, who must register regardless of turnover) can change. Once registered, you must charge 10% GST on your invoices, collect it from clients, and remit it to the ATO through Business Activity Statements (BAS).

Superannuation

From 1 July 2025, the Superannuation Guarantee rate reached its legislated final level of 12% of ordinary time earnings. As a freelancer/independent contractor, you are generally responsible for your own superannuation contributions; however, if you are engaged under a contract that is wholly or principally for your personal labour, the engaging business may still have superannuation obligations towards you even if you hold an ABN. A significant related change: from 1 July 2026, “Payday Super” rules require employers to pay superannuation contributions at the same time they pay wages, rather than quarterly — this mainly affects employees but is a useful signal of the broader compliance direction for engaging businesses. Confirm your position with a registered tax agent or the ATO’s contractor super guidance.

Income Tax Planning

Australian individual income tax rates for residents for the 2026–27 financial year (from 1 July 2026) reflect the legislated further reduction to the second tax bracket. Always verify current rates with the ATO’s tax rates page, as this article’s figures can change and the ATO’s published tables are the authoritative source.

• $0 – $18,200: Nil
• $18,201 – $45,000: 15%
• $45,001 – $135,000: 30%
• $135,001 – $190,000: 37%
• $190,001+: 45%

Plus the 2% Medicare Levy applies to most taxpayers. As a rule of thumb, setting aside approximately 25–35% of every freelance payment for tax is a reasonable starting point, but your actual liability depends on your total income, deductions, and circumstances. Work with a registered tax agent for an accurate estimate. See: ATO income tax rates for Australian residents.

Common Mistakes to Avoid

1. Misunderstanding Your Classification

Many platform workers assume the new laws give them full employee status — they don’t. The employee-like worker framework is a distinct third category. Misclassification in either direction can cause tax complications, contractual confusion, and missed entitlements. Use the classification criteria above and consult the Fair Work Ombudsman’s resources if uncertain.

2. Operating Without an ABN

Freelancing without an ABN means clients will generally withhold the top rate of tax (currently 47%) from payments over $75 excluding GST, creating immediate cash-flow problems and preventing you from claiming business tax deductions. Apply for an ABN for free at abr.gov.au.

3. Ignoring GST Obligations

Exceeding the $75,000 annual turnover threshold without registering for GST exposes you to ATO penalties, back-payment of GST owed, and audit risk. Track your income throughout the year and register before you hit the threshold. Use the ATO’s GST guide for current rules.

4. Poor Record-Keeping

Failing to keep invoices, receipts, and documentation means missing valuable tax deductions and being unable to substantiate expenses in an audit. Set up a record-keeping system from day one. The ATO generally requires records to be kept for five years.

5. Not Setting Aside Tax Savings

Spending all income without reserving funds for tax is one of the most common and damaging mistakes freelancers make. Open a separate savings account dedicated to tax, and transfer an estimated portion of every payment into it immediately.

6. Platform Over-Dependence

Relying entirely on one platform or client can lead to sudden income loss, limited negotiating power, and — if one platform is your primary source of income — potential employee-like worker classification. Diversify across multiple clients and platforms. Working across multiple platforms, including direct client relationships and commission-free platforms like jobbers.io, reduces dependency and strengthens your independent contractor status.

Frequently Asked Questions

What is an employee-like worker in Australia?

An employee-like worker is a legal classification created by the Fair Work Legislation Amendment (Closing Loopholes No. 2) Act 2024. These are independent contractors who perform work through digital labour platforms and have at least two of these characteristics: low bargaining power; receive the same or less pay than an employee for comparable work; rely substantially on the platform for income; or work under conditions similar to employment. They’re entitled to minimum standards set by the Fair Work Commission but are not classified as full employees. See the official definition at fairwork.gov.au.

Do the new gig economy laws apply to all freelancers in Australia?

No. The laws specifically target workers on digital labour platforms who meet the employee-like worker criteria. Traditional freelancers who work directly with clients, have strong bargaining power, earn above the contractor high income threshold ($190,100 from 1 July 2026 — verify at fwc.gov.au), or use platforms that simply facilitate connections without controlling work are not affected.

What is the current national minimum wage in Australia (2026–27)?

As of 1 July 2026, following the FWC’s 2026 Annual Wage Review, the National Minimum Wage is $26.44 per hour, or $1,004.90 per week (before tax) for a 38-hour week — a 4.75% increase from the previous rate of $24.95/hour. Casual employees receive an additional 25% casual loading, bringing their minimum rate to approximately $33.05/hour. This rate is reviewed annually by the Fair Work Commission. Always verify the current rate at fairwork.gov.au/pay-and-wages/minimum-wages before making any pay-related decisions.

How does jobbers.io differ from platforms affected by the new laws?

jobbers.io operates on a fundamentally different model to regulated digital labour platforms. It charges zero commission on completed work, allows freelancers and clients to negotiate all terms directly, does not control how work is performed, does not algorithmically allocate work, and does not create financial dependency. Because jobbers.io simply facilitates connections rather than controlling the working relationship, users generally maintain true independent contractor status. That said, your specific classification always depends on the actual working arrangement — not the platform alone.

Do I need an ABN to freelance in Australia?

Generally, yes. If you are earning freelance income in Australia as a business, you need an ABN. Without one, clients are generally required to withhold the top rate of tax (currently 47%) from payments over $75 excluding GST. An ABN is free to obtain through the Australian Business Register and most applicants receive one instantly online. Confirm ABN requirements with the ATO.

When must I register for GST as a freelancer?

You must register for GST when your annual turnover reaches or is expected to reach $75,000 (verify the current threshold at ato.gov.au). Once registered, you must charge 10% GST on taxable supplies, collect it from clients, and remit it to the ATO through quarterly or monthly Business Activity Statements (BAS). You can also voluntarily register below the threshold to claim GST credits on business expenses.

Can digital platforms still deactivate workers under the new laws?

Yes, but with significant restrictions. Since 26 February 2025, platforms must comply with the Deactivation Code, which requires advance warnings, human contact options, clear reasons for deactivation, and a fair process for challenging deactivations. Eligible workers who have worked regularly for at least 6 months and earn below the contractor high income threshold can apply to the Fair Work Commission within 21 days of deactivation. See: fwc.gov.au — unfair deactivation.

What are Minimum Standards Orders and who sets them?

Minimum Standards Orders (MSOs) are legally binding rules about pay and conditions for employee-like workers, set by the Fair Work Commission. As of July 2026, no MSO has yet been finalised for any sector; the Commission is still considering applications including MS2024/3 (on-demand food delivery), which now incorporates a joint proposal from Uber Eats, DoorDash and the TWU. MSOs can cover payment rates, deductions, insurance, record-keeping, consultation, and representation rights — but cannot include rostering or overtime provisions. Check the status of current applications at fwc.gov.au.

How much tax should I set aside as a freelancer in Australia?

A widely used rule of thumb is to set aside 25–35% of every freelance payment for tax obligations, covering income tax, the 2% Medicare Levy, and potential PAYG instalment obligations. Your exact percentage depends on your total annual income, deductions, and tax bracket. Current income tax rates and thresholds are published at ato.gov.au. Always work with a registered tax agent for an accurate personal estimate — this is not financial or tax advice.

What’s the difference between a freelancer and a gig worker?

The terms overlap but have practical distinctions. Gig workers typically perform short-term tasks through digital platforms (food delivery, rideshare) with platform-set rates and algorithm-driven work allocation. Freelancers generally provide professional services directly to clients, set their own rates, and have more control over their work. Under the 2024 legislation, many gig workers may be classified as employee-like workers, while traditional freelancers generally remain independent contractors. The distinction matters for tax, entitlements, and regulatory coverage.

Can I work on multiple freelance platforms simultaneously?

Yes. Working across multiple platforms — often called “multi-homing” — is encouraged for income diversification and strengthens your independent contractor status by demonstrating you are not economically dependent on any single platform. Always check each platform’s individual terms of service for any restrictions. Platforms like jobbers.io explicitly support multi-platform working.

What happens if I’m misclassified as an independent contractor when I should be an employee?

If you believe you are being misclassified, you can apply to the Fair Work Commission for a determination. If found to be an employee rather than a contractor, you may be entitled to back-pay of entitlements including minimum wage, superannuation, annual leave, and sick leave. Since 26 August 2024, a “real substance and practical reality” test under section 15AA of the Fair Work Act applies to most worker classification determinations. The Fair Work Ombudsman provides resources to help determine your classification and available remedies.

Are there penalties for platforms that don’t comply with the new gig economy laws?

Yes. Civil penalties apply for violations of Minimum Standards Orders, failure to comply with the Deactivation Code, and unfair deactivation of workers. In addition, since 1 January 2025, intentional wage underpayment (wage theft) became a criminal offence punishable by imprisonment for employers. Platforms and businesses that breach the rules can face significant penalties enforced by the Fair Work Ombudsman. See: Fair Work Ombudsman enforcement.

Conclusion: The Future of Freelancing in Australia

Australia’s gig economy laws represent a landmark shift in how platform work is regulated, providing essential protections for vulnerable workers while attempting to preserve the flexibility that makes freelancing attractive. As of July 2026, the framework is operational, enforcement is active, and the first industry-wide minimum standards proposal is before the Commission awaiting a decision.

Key Takeaways

1. Employee-like worker status applies specifically to platform workers with low bargaining power — not all freelancers
2. New protections include minimum standards (MSOs still pending FWC decision for all sectors), deactivation safeguards, and dispute resolution access
3. The contractor high income threshold is $190,100 from 1 July 2026 (verify annually at fwc.gov.au)
4. The National Minimum Wage is $26.44/hour from 1 July 2026 (verify at fairwork.gov.au)
5. The no-ABN withholding rate is currently 47% (verify with the ATO)
6. ABN and tax compliance are mandatory regardless of worker classification
7. Platform choice matters: commission-free platforms like jobbers.io preserve true independence
8. Wage theft has been a criminal offence since 1 January 2025
9. Payday Super rules (paying super alongside wages) commenced 1 July 2026

Action Steps for Australian Freelancers

1. Determine your classification using the criteria in this guide and official Fair Work Ombudsman resources
2. Get your ABN if you don’t have one — free at abr.gov.au
3. Set up proper record-keeping and a dedicated tax savings account
4. Reserve 25–35% of income for tax obligations and confirm your bracket with a tax agent
5. Diversify income sources across multiple clients and platforms
6. Stay informed: follow the Fair Work Ombudsman newsroom for regulatory updates
7. Seek professional advice when needed from a registered tax agent or employment lawyer

Official Resources and Further Reading

• Fair Work Ombudsman — Employee-like workers (official guidance)
• Fair Work Commission — Unfair deactivation for regulated workers
• Fair Work Commission — Contractor high income threshold (current figures)
• Fair Work Ombudsman — Current minimum wages
• ATO — Individual income tax rates
• ATO — How to register for an ABN
• ATO — GST registration requirements
• ATO — Withholding when ABN is not provided
• ATO — Superannuation for contractors
• Fair Work Commission — MS2024/1–3 regulated worker minimum standards cases
• Federal Register of Legislation — Fair Work Legislation Amendment (Closing Loopholes No. 2) Act 2024

Legal Disclaimer: This content is provided for educational and informational purposes only and does not constitute legal, tax, financial, or industrial relations advice. Employment laws, tax rates, income thresholds, and regulatory requirements change regularly and may have changed since this article was last reviewed. All figures cited in this article must be independently verified with official sources before being relied upon for any purpose. Always consult qualified professionals — including registered tax agents, employment lawyers, and industrial relations specialists — regarding your specific circumstances. jobbers.io and its editorial team accept no liability for actions taken on the basis of this content.

Last reviewed: July 2026.