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 statement by a contractor confirming they earn above the high income threshold and wish to be assessed under the start of relationship test, not the whole of relationship test, for employment status.
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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 ensure you are not classified as an employee under section 15AA of the Fair Work Act.
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What should be in a contractor opt out notice?

The notice must state your belief that your earnings exceed the contractor high income threshold and be submitted in writing to the business engaging you.
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Frequently asked questions

What is a contractor opt out notice?

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When should you use a contractor opt out notice?

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What should be in a contractor opt out notice?

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Who is eligible to submit this notice?

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What are the key implications of opting out?

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Can you cancel an opt out notice?

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What should you do 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.

Articles about Contractor Opt Out Notice

How To Get Out of a Contract
By William Vu|Apr 1, 2016

How To Get Out of a Contract

Contracts might not be for everyone - here are some ways of leaving an agreement.

How Long Can a Contractor Work for the Same Company?
By Lachlan Ward|May 28, 2025

How Long Can a Contractor Work for the Same Company?

Do you use the same contractor on an ongoing basis? Want to know how long they can work for your company? Read here to find out everything you need to know.

The Lawpath Blog
By 1476|

The Lawpath Blog

Stay up to date with legal concepts, tactics and strategies for your business

What is Payment in Lieu of Notice?
By Paul Taylor|Jun 26, 2019

What is Payment in Lieu of Notice?

Employment can end sooner than you expect. Sometimes, an employer may pay you in lieu of working out your notice. Read about it here.

Employment vs Independent Contractors in Australia
By Edwin Montoya Zorrilla|Nov 21, 2025

Employment vs Independent Contractors in Australia

The Fair Work Legislation Amendment (Closing Loopholes No. 2) Act 2023 has introduced significant changes to the definition of employment and the regulation of independent contractor arrangements in Australia.

Fixed Term Contract Termination: Legal Or Not?
By Ilyas Omari|May 20, 2025

Fixed Term Contract Termination: Legal Or Not?

Have you ever wondered whether the termination of fixed term contracts is legal? Read this article to find out.

Resigning During Probation: How Much Notice? (2025 Update)
By Ilyas Omari|Nov 20, 2025

Resigning During Probation: How Much Notice? (2025 Update)

Resigning during probation might seem like a simple process. In reality, there's much more to it. Here's what you need to know.

SME gets hit with $278K employment fine for "contractors"
By Dominic Woolrych|Jul 29, 2013

SME gets hit with $278K employment fine for "contractors"

Being able to distinguish between what makes someone an employee or a contractor is extremely important. Here's what SME's need to know.

How to Terminate a Contract by Mutual Consent
By Taeisha Dou|May 23, 2024

How to Terminate a Contract by Mutual Consent

There are many legal ways to terminate a contract. Mutual consent is the most civilised way to terminate if absolutely necessary. Find out more here.

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