Contractor Opt Out Notice

This Notice can be given by a contractor who meets the high income threshold to ensure that they will not be classified as an employee under section 15AA of the Fair Work Act.

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Last updated October 24, 2025

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Suitable for Australia

Contractor Opt Out Notice

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What is a contractor opt out notice?

A contractor opt out notice is a written declaration by a contractor earning above a set income threshold, stating they do not wish to be classified as an employee under section 15AA of the Fair Work Act.
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When should you use a contractor opt out notice?

You should use this notice if you are a contractor earning above the high income threshold and want to be assessed under the start of relationship test, rather than the whole of relationship test, for employment classification.
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What should be in a contractor opt out notice?

The notice should state your belief that your earnings exceed the high income threshold and confirm your intention to opt out of employee classification under section 15AA of the Fair Work Act.
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Frequently asked questions

Who is eligible to submit this notice?

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What are the main benefits of opting out?

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What legal protections might you lose by opting out?

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Can you cancel your opt out notice after submitting it?

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How often can you use this notice for the same working relationship?

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What is the process for submitting this notice?

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What should you check before submitting the notice?

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View Sample Contractor Opt Out Notice

Contractor Opt Out Notice
risk level indicator at Low level

The Legal Risk Score of a Contractor Opt Out Notice Template is Low

Our legal team have marked this document as low risk considering:

  • The document lacks specific details about the terms of engagement between the contractor and the client, which could lead to misunderstandings or disputes about expectations and responsibilities.
  • The document mentions an income threshold but does not specify the amount, which could lead to confusion or misinterpretation about eligibility to opt out of certain legal protections.
  • Opting out of section 15AA of the Fair Work Act 2001 might expose the contractor to fewer legal protections, potentially affecting their rights in the workplace.

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