Self-Employed Contractors in Australia

Self-employed contractors have become more common in Australia over the past 20 years. In August 1998, 10 per cent of employed persons, or 844 000 individuals, worked as self-employed contractors.

A staff research paper by Matthew Waite and Lou Will, Self-employed Contractors in Australia: Incidence and Characteristics, presents an analysis of self-employed contracting in Australia. The analysis covers all self-employed contractors, including dependent and independent contractors.

The study found that self-employed contractors are a diverse group. They are employed in all industries and occupations. However, they are largely concentrated in Construction (25 per cent of self-employed contractors in August 1998), Property and Business Services (20 per cent) and in the occupational category of Tradepersons (27 per cent).

In August 1998, 25 per cent of self-employed contractors were dependent contractors. They represented 2.6 per cent of employed persons, or 215 000 individuals. Dependent contractors are a diverse group, but have demographic and employment characteristics more like those of employees than do independent contractors.

The study is the latest in a series conducted by the Productivity Commission into non-traditional employment.