Independent contractors provide agreed services to SBS under a contract for those services and "sell their services" to SBS. In other words, they are engaged directly by SBS and not through an agency. They are different to employees for a number of reasons, including that they usually negotiate their own fees and working arrangements, usually use their own processes, tools and methods to complete the work and can work for more than one client at a time. Independent contractors are often called contractors or subcontractors. An independent contractor usually performs the work as a sole trader (individual) or using a Pty Ltd company, but may alternatively use a trust, partnership or other incorporated entity.
An independent contractor submits an invoice when they need to be paid. They can be paid on a regular basis or at the end of the contract or project.
Since independent contractors provide services to another person, they need to pay their own income tax on money they earn (to comply with tax laws) and may need to pay GST. As well as paying their own tax, independent contractors may need to make their own superannuation contributions. There are exceptions to this, such as when a contractor is hired wholly or principally for labour. In this case, SBS is responsible for paying their superannuation. For further information see Superannuation for Contractors – How to Guide.
Independent contractors don’t get other entitlements that employees get such as leave and notice of termination unless they negotiate for these entitlements to be included in their contract.