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

⚠️ Important Notice — Verify All Figures Before Acting
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. All figures in this guide (wage rates, income thresholds, withholding percentages, GST thresholds, and superannuation rates) must be independently verified against the official sources listed 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.

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

A comprehensive, up-to-date guide to the Fair Work Legislation Amendment (Closing Loopholes No. 2) Act 2024, the new “employee-like worker” framework, and what it means for independent contractors and digital platform workers in Australia.About This Guide
This article was compiled by the jobbers.io editorial and legal research team, drawing directly on official sources including the Fair Work Ombudsman, the Fair Work Commission, and the Australian Taxation Office (ATO). jobbers.io operates a commission-free global freelance marketplace and has been tracking Australian platform work regulation since the Closing Loopholes reform process began. This guide reflects publicly available information as of April 2026. Laws change — always verify with official sources before acting.

Australia’s workplace landscape underwent a seismic shift in 2024 with the introduction of groundbreaking legislation that redefined the rights of gig economy workers. From 26 August 2024, gig economy and road transport delivery workers are now 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.

Two years on, enforcement is deepening: the Deactivation Code is in full effect, landmark pay deals have been struck between major platforms and workers, and the FWC is actively finalising Minimum Standards Orders for the on-demand delivery sector. This comprehensive guide examines what these changes mean for Australia’s freelancers, how the new laws work in 2026, who they affect, and how independent professionals can navigate this transformed 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 that sits 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 now 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 (as of April 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 July 2025: Contractor high income threshold increased to $183,100; National Minimum Wage increased to $24.95/hour; Superannuation Guarantee increased to 12%
• November 2025: Uber Eats and DoorDash struck a landmark collective pay agreement with the Transport Workers Union — the first of its kind under the new framework — pending final FWC approval for July 2026 commencement
• 2025–2026 ongoing: FWC actively consulting on Minimum Standards Orders for on-demand delivery and other sectors (MS2024/3 and related applications)

Important note: Minimum Standards Orders for specific sectors were still in consultation as of April 2026. Always check the Fair Work Commission website for the current status of orders affecting your sector.

Why This Legislation Was Necessary

The push for reform came after years of documented exploitation in the gig economy. A Transport Workers Union survey in mid-2024 found that food delivery workers earned well below Australia’s minimum wage after accounting for expenses. At the time of that survey, Australia’s national minimum wage was approximately $23.23/hour (effective July 2024); as of 1 July 2025, the National Minimum Wage is $24.95 per hour or $948 per week before tax, following a 3.5% increase announced by the Fair Work Commission (source: Fair Work Ombudsman).

The Transport Workers Union reported that multiple food delivery riders and rideshare drivers were killed after the Australian transport gig economy began in 2017, with their dependants receiving no workers’ compensation because benefits only applied 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 by the new laws. 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 new 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 of $183,100 per annum (updated from $175,000 effective 1 July 2025 — verify current threshold 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 now has the power to create Minimum Standards Orders (MSOs) that establish baseline conditions for employee-like workers. As of April 2026, the FWC has been actively consulting on applications — including MS2024/3, a draft Minimum Standards Order for the on-demand delivery sector — following applications from the Transport Workers Union filed in September 2024. These processes involve extensive stakeholder consultation under the procedures set out in Fair Work Act ss 536KAA–KAE before any order is finalised.

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

What Cannot Be Included: Minimum Standards Orders specifically 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 have had to 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 from 26 August 2024, and who are removed for reasons related to conduct or capacity. Workers must apply to the Commission within 21 days of the deactivation.

See: Fair Work Commission — Unfair deactivation for regulated workers

3. Landmark Pay Deal: Uber Eats and DoorDash (2025)

In November 2025, Uber Eats and DoorDash reached a landmark collective pay agreement with the Transport Workers Union — the first such agreement negotiated under Australia’s new employee-like worker framework. The agreement, once approved by the Fair Work Commission, provides food delivery workers with minimum pay levels, mandatory accident insurance, improved access to delivery records, and more detailed job information. It was set to take effect in mid-2026 pending FWC approval. This represents the most significant practical test of the new collective bargaining rights introduced by the 2024 legislation.

4. Collective Bargaining Rights

The new laws empower platform operators and unions representing employee-like workers to negotiate collective agreements covering: terms and conditions for digital platform work; 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 from digital platforms; 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

The Australian freelance market continues to experience strong growth:

• $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 Australian workforce that freelances

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

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 ($183,100 for 2025–26)?

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 $183,100 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 earnings.

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 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%) from payments exceeding $75 (excluding GST). The article previously cited 46.5% — this has been corrected to 47% to reflect the current top marginal tax rate including the Medicare Levy. Always confirm the current withholding rate with the Australian Taxation Office directly.

According to the Australian Taxation Office, 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 (takes approximately 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. As of April 2026, this threshold is $75,000 for most businesses and $150,000 for non-profit organisations. Always verify the current GST threshold with the ATO — thresholds 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 increased to 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 have superannuation obligations towards you even if you hold an ABN. Confirm your position with a registered tax agent or the ATO’s contractor super guidance.

Income Tax Planning

Australian individual income tax rates for the 2025–26 financial year (residents) are as follows. Always verify current rates with the ATO as they are subject to change.

• $0 – $18,200: Nil
• $18,201 – $45,000: 19%
• $45,001 – $135,000: 32.5%
• $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 will depend on your total income, deductions, and circumstances. Work with a registered tax agent for an accurate estimate. See: ATO income tax rates.

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 new 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 ($183,100 for 2025–26 — 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 (2025–26)?

As of 1 July 2025, the National Minimum Wage is $24.95 per hour, or $948.00 per week (before tax) for a 38-hour week — a 3.5% increase from the previous year’s rate of $24.10/hour. Casual employees on the national minimum wage receive an additional 25% casual loading ($31.19/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?

Yes. If you are earning freelance income in Australia as a business, you need an ABN. Without an ABN, 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 (as at April 2026 — verify 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 sets of rules about pay and conditions for employee-like workers, set by the Fair Work Commission. As of April 2026, the FWC is actively in consultation on orders for the on-demand delivery sector (MS2024/3) and potentially other sectors. 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 MSO 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. The 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. Note: as of 26 August 2024, a new “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 what remedies may be available.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. Additionally, as of 1 January 2025, intentional wage underpayments (wage theft) became a criminal offence punishable by imprisonment for employers. Platforms and businesses that breach the new 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 new 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 April 2026, the framework is operational, enforcement is active, and the first collective pay agreements under the new system are taking shape.

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 being finalised for some sectors), deactivation safeguards, and dispute resolution access
3. The contractor high income threshold is $183,100 for 2025–26 (verify annually at fwc.gov.au)
4. The National Minimum Wage is $24.95/hour as of July 2025 (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 became a criminal offence from 1 January 2025

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 — How to register for an ABN
• ATO — GST registration requirements
• ATO — Withholding when ABN is not provided
• ATO — Superannuation for contractors
• Federal Register — 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: April 2026.