Locums working through HeyLucy! are independent contractors — not employees of HeyLucy! or of the clinics they work with. That distinction matters for tax, super, insurance, and what you’re entitled to. Here’s what it actually means in practice.

The legal distinction in Australia

The Australian Tax Office and Fair Work Commission both have guidance on the difference between employees and independent contractors. The key factors they look at include:

• Control: Does the engaging party control how the work is done, or just the result? Independent contractors generally have more control over how they perform the work.
• Ability to subcontract or delegate: Can the worker send someone else to do the job? Contractors generally can; employees generally can’t.
• Provision of equipment: Contractors typically use their own tools and equipment.
• Financial risk: Contractors bear the risk of their work — if there’s a problem, it’s on them. Employees are generally protected.
• Independence: Contractors typically work for multiple clients, operate their own business, and are not integrated into the engaging party’s business.

A locum podiatrist or physiotherapist who works across multiple clinics, invoices through their own ABN, holds their own insurance, and sets their own schedule is operating as an independent contractor. That’s the standard model for locum work in allied health in Australia.

What independent contractor status means for locums

ABN required

You need an Australian Business Number to operate as a contractor. Most locums operate as sole traders — the simplest structure — but some use a company (Pty Ltd) for tax or asset protection reasons. Either works on HeyLucy!. If you don’t have an ABN, you can register one for free through the Australian Business Register (abr.gov.au).

Superannuation — it depends on your structure

How super works depends on how your locum business is set up:

• Sole trader: The clinic is responsible for paying your super. After a shift is completed, HeyLucy! issues the clinic a Superannuation Contribution Notice specifying the super amount and your nominated fund. The clinic pays this directly to your super fund — it does not go through HeyLucy!. The rate shown on the platform is inclusive of super, so the clinic’s total obligation is the rate plus the 11.5% super paid separately to your fund.
• Company or trust: The clinic pays the full rate (inclusive of super) to your entity. No Superannuation Contribution Notice is issued and the clinic has no super obligation. It’s your responsibility to pay the super component from that amount into your super fund quarterly.

If you’re not sure which structure applies to you or how to set your rate correctly, speak to your accountant before you start taking shifts.

GST registration

If your annual turnover from locum work exceeds $75,000, you’re required to register for GST and charge it on top of your rate. If you’re under $75,000, registration is optional. Health services provided directly to patients have specific GST treatment — check with your accountant for your specific situation, as the rules around allied health and GST have some complexity.

Own insurance

Professional indemnity insurance is both an AHPRA registration requirement and a practical necessity. As a contractor, you’re not covered by the clinic’s policy. You hold your own coverage. HeyLucy! requires proof of insurance during verification.

No employee entitlements

As an independent contractor, you’re not entitled to annual leave, sick leave, long service leave, or redundancy pay from clinics you work with. That’s the trade-off for the higher hourly rate and the flexibility. Factor the absence of those entitlements into your rate-setting.

What it means for clinics

No PAYG withholding

You don’t withhold tax from contractor invoices the way you would for employees. The contractor handles their own tax obligations. You pay the invoice amount. No group certificates, no STP reporting for the contractor.

No leave liability

You don’t accrue leave obligations for contractors. The engagement ends when the shift is complete. No leave balances, no long service calculations, no entitlement payout on termination.

Misclassification risk

Don’t assume that calling someone a contractor makes them one legally. If the actual working arrangement resembles employment — you direct how the work is done, they work exclusively for you, they use only your equipment, they can’t subcontract — courts and tribunals can look through the label and find an employment relationship. That triggers back-pay for entitlements and potential penalties.

The standard locum arrangement — a registered health professional working multiple engagements across different clinics via an ABN, setting their own rate, holding their own insurance — is genuinely contracting. If that description doesn’t match the arrangement you’re considering, get specific advice.

A note on the 2024 contractor changes

Changes to Fair Work Act provisions on employee vs contractor classification took effect in 2024, with new rules about how to assess the relationship in light of subsequent conduct (not just the contract terms). The practical impact for standard locum arrangements — where contractors genuinely operate their own business across multiple clients — is limited. But if you’re a clinic using a single locum as your primary or exclusive clinical resource over an extended period, it’s worth a conversation with your accountant or employment lawyer.

This article is general information only and is not legal or tax advice. For your specific circumstances, consult a qualified accountant or employment lawyer, and refer to the ATO (ato.gov.au) and Fair Work Commission (fairwork.gov.au) for current guidance.