Consultancy Agreement in Australia: Template, Clauses and Local Law (2026)

What is a consultancy agreement in Australia, and when do you need one? A consultancy agreement in Australia is a contract between a business (the client) and an independent consultant who provides expert advice or services for a fee. It is close to a service agreement but written for an individual or small firm engaged as an independent contractor rather than an employee. The agreement sets the scope, the fee, who owns the work, and the rules on confidentiality and competition. Its most important job in Australia is to support a genuine contractor relationship, deal with GST correctly, and handle the superannuation and tax rules that can apply even to contractors. Australia changed how contractor status is decided. Since 26 August 2024, following amendments to the Fair Work Act, courts and the Fair Work Commission look at the real substance and practical reality of the whole relationship, not just the words of the contract. A written "independent contractor" label no longer carries the weight it once did, so the facts of the engagement matter more than ever. This article is general guidance, not legal advice. Employment and tax rules change, so have a qualified professional review an agreement before you rely on it. Last verified October 2026. ## Australia consultancy agreement template Copy the block below and fill the bracketed fields. ```

CONSULTANCY AGREEMENT This Consultancy Agreement (the "Agreement") is made on [DATE] BETWEEN: [CLIENT NAME] ABN [number], of [address] (the "Client") AND [CONSULTANT NAME] ABN [number], of [address] (the "Consultant") 1. SERVICES The Consultant will provide the services in Schedule 1 (the "Services"). The Consultant controls how the Services are performed, provides its own tools, and may work for others. 2. INDEPENDENT CONTRACTOR The Consultant is engaged as an independent contractor, not an employee. The Consultant holds its own ABN, is responsible for its own income tax and insurances, and arranges its own leave. This clause reflects, but does not by itself determine, the parties' status. 3. FEES AND GST The Client will pay [a fee of $[AMOUNT] / [RATE] per [hour/day]], invoiced [schedule] and due within [N] days. Fees are [exclusive of GST; GST is added where the Consultant is registered for GST]. 4. SUPERANNUATION Where the Consultant is engaged mainly for their labour, the Client may be required to pay superannuation for the Consultant under the superannuation guarantee rules, as set out in Schedule 1. 5. INTELLECTUAL PROPERTY Deliverables created for the Client under this Agreement belong to the Client on full payment, and the Consultant assigns those rights and consents to use as needed. The Consultant keeps its pre-existing material and licenses it for use in the deliverables. 6. CONFIDENTIALITY The Consultant keeps the Client's confidential information secret during and after the engagement and uses it only for the engagement. 7. RESTRAINT For [N] months after the engagement, the Consultant will not solicit the Client's staff or customers it worked with, so far as the restraint is reasonable and goes no further than needed to protect a legitimate interest. 8. TERM AND TERMINATION This Agreement runs from [START] and either party may end it on [N] days written notice, or immediately for material breach. Fees earned to the end date remain payable. 9. LIABILITY AND INSURANCE The Consultant holds [professional indemnity / public liability] insurance of at least $[AMOUNT]. To the extent the law allows, neither party is liable for indirect loss, and the Consultant's liability is capped at [the fees paid]. 10. GOVERNING LAW This Agreement is governed by the laws of [STATE/TERRITORY], Australia. Signed - Client: __________ Consultant: __________ Name / title / date Name / date

- **Fees and GST (clause 3).** A consultant must register for GST once turnover reaches $75,000, then charges GST on its fees. A registered client can usually claim the GST back. Make the GST treatment explicit so invoices are correct.
- **Superannuation (clause 4).** This is a trap. Even a genuine contractor can be owed the superannuation guarantee if they are engaged wholly or principally for their labour. Check whether super applies, because missing it brings back payments and charges.
- **Intellectual property (clause 5).** Assign the deliverables on payment and let the consultant keep and license its pre-existing material.
- **Restraint (clause 7).** Australian courts enforce restraints only so far as they are reasonable and protect a legitimate interest, so keep any non-solicit narrow in time and scope. ## Common mistakes to avoid - Relying on an "independent contractor" label while the day-to-day relationship looks like employment, which the whole-of-relationship test will see through, exposing the client to back pay, leave and penalties for sham contracting.
- Forgetting the superannuation guarantee for a contractor engaged mainly for their labour.
- Missing GST registration once turnover reaches $75,000, or charging GST while unregistered.
- No IP assignment, so the client may not own the deliverables.
- An over-broad restraint that a court will read down or refuse to enforce. ## A note on jurisdiction and current law - **Classification changed in 2024.** Since 26 August 2024, contractor versus employee status is decided on the substance and practical reality of the whole relationship under the Fair Work Act, not the contract label alone. High-income contractors may be able to opt out and be assessed on the contract terms. <!-- [VERIFY: current high-income threshold for the opt-out and the latest Fair Work guidance as of October 2026] -->
- **Superannuation.** The superannuation guarantee can apply to a contractor engaged wholly or principally for their labour, not only to employees.
- **GST.** Registration is required once turnover reaches $75,000, after which the consultant charges GST on its supplies.
- **Personal services income.** Where income is mainly a reward for one person's personal efforts, the ATO's personal services income rules may affect how it is taxed. <!-- [VERIFY: current personal services income (PSI) rules and tests with the ATO as of October 2026] -->
- **Restraints and contract law are state-based.** Liability, restraint and interpretation follow the governing state's law. ## Where a contract workspace helps An Australian consultancy agreement turns on getting the engagement status, GST and superannuation wording right, checking the IP and restraint terms before signing, and tracking end dates across many consultants. Drafting, reviewing, tracking and governing an Australian consultancy agreement can live in one AI workspace tuned to how your company engages consultants, with per-clause risk flagged, plain-English edits, and the key dates kept in one place. [Adira](https://adiralaw.com) is one tool built around that single-workspace idea for engagement contracts like an Australian consultancy agreement. This template alone is enough to put a fair agreement in place.