ABN Contractor Laws for Bricklayers
What Changed and Why It Matters
Fair Work’s new rules reshaped how bricklayers could employ or be employed. Here’s what happened.
In August 2024, the Fair Work Act changed — and it completely reshaped how Australian bricklaying businesses operated.
Under the Closing the Loopholes Bill, new laws clearly defined the difference between an employee and an independent contractor, and introduced hefty penalties for businesses that got it wrong. Before these changes, many bricklayers were still working under ABNs, but from 26 August 2024, that became illegal, even if superannuation and workers compensation were being paid.
What the Law Changed To
For decades, the line between employee and contractor in the construction industry was blurry. The new laws finally made it clear.
From 26 August 2024:
Employees and “employee-like workers”, including apprentices, trainees, trade assistants, and labourers — were no longer allowed to work under an ABN.
Having an ABN no longer determined whether someone was a contractor.
Businesses were required to look at the real substance and practical reality of the working relationship, not just the written contract.
The 7 Key Factors That Defined an Employee vs Contractor
Fair Work outlined seven key factors to determine whether a worker was an employee or an independent contractor:
Control – Who decided the start and finish times?
Employee: Was required to start and finish at set times.
Contractor: Could choose when and how the work was done.
Integration – Whose business were they building?
Employee: Worked within the employer’s business.
Contractor: Operated their own business and could work for others.
Method of Payment – How were they paid?
Employee: Paid hourly, weekly, or on wages.
Contractor: Paid per project, stage, or completion.
Delegation/Subcontracting – Could they hire someone else?
Employee: Had to perform the work themselves.
Contractor: Could delegate or subcontract the work.
Tools and Equipment – Who supplied what was needed?
Employee: Brought personal hand tools, while the employer supplied major equipment like mixers, saws, and scaffolding.
Contractor: Provided and transported all their own tools and equipment.
Risk – Who carried the risk if something went wrong?
Employee: The employer bore the commercial risk and liability.
Contractor: Took on the financial risk for injuries, defects, or rework.
Goodwill and Profit – Who benefited from the business success?
Employee: Was paid for their time only.
Contractor: Benefited from profits and built goodwill in their own business.
What It Meant for Bricklayers
After 26 August 2024, it became illegal for bricklaying businesses to employ workers under ABN arrangements — even if they were paying superannuation or workers compensation.
The only lawful employment options were:
Casual
Part-time
Full-time
Businesses that continued to engage workers under ABNs risked severe fines and legal action under the Fair Work Act for sham contracting.
How Brickies Network Helped
When these changes came into effect, many bricklaying businesses were uncertain about how to transition their crews legally and safely.
Brickies Network supported hundreds of bricklaying business owners through this shift by providing:
Expert advice and guidance on compliance.
Templates for employment contracts and documentation.
Step-by-step support for moving workers from ABN to wages.
Ongoing business training to help bricklayers stay compliant and profitable.
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