Hiring an individual with an Australian Business Number.
If you’ve hired an individual, it is the working relationship and details within the working agreement or contract that determines if they are a contractor or employee for tax and superannuation purposes. The agreement or contract your business has with the worker can be written or verbal.
You can check here that contractors have a current ABN, and some form of contract must be arranged for the job you want done, a quote or service and costings agreement will be needed and a time and date set for services to be completed and paid for.
Before you pay the invoice remember to check that services or tasks are complete and workmanship is up to the standard of what you agreed to pay for. See that no damage has occurred while working, as this is a contractors legal responsibility to repair should anything have happened .
A lot of tradesman display their insurances as part of their advertising however if you wish to you can ask to sight proof of insurance and workers compensation before accepting any arrangement to start work.
If you are using contractors frequently you may decide to ask them for a service and costing contract some are able to offer this i.e. Jims mowing or you could present a written account of a verbal agreement and have them sign it for both your records and reference should it ever be needed.
Invoices will need their details and payment options, and you can also ask for a breakdown of charges and service dates if required.
If you are in any doubt if you are engaging on a contractual basis or not check it through at the ATO