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Somewhere between “you’re qualified” and “you’re working,” every newly certified personal trainer or fitness professional runs into a decision that sounds simple but isn’t: employed, self-employed, or both?
Each path comes with real differences in tax, entitlements and day-to-day control. And — increasingly relevant since 2024 — invoicing with an ABN doesn’t automatically settle which one you’re actually in. This guide covers the practical differences, how the two can work together, and where to check your own arrangement properly if something doesn’t add up.
Quick answer
Most fitness professionals in Australia work one of three ways: employed by a gym or studio, self-employed as an independent contractor, or a mix of both — running their own sessions while also picking up contract or cover work. Each comes with different tax, entitlements and control, covered in the table below. One thing worth knowing either way: invoicing with an ABN doesn’t automatically rule out entitlements like superannuation. If your day-to-day arrangement functions more like employment than the contractor label suggests, you could still be owed them. For the definitive read on your own situation, the Fair Work Ombudsman and the ATO are the right places to check.
The core difference, in plain terms
| Employed | Self employed (independent contractor) | |
|---|---|---|
| Who sets the schedule | Employer directs hours and rostering | You set your own hours and availability |
| Who sets the price | Employer sets your wage/pay rate | You set your own fees |
| Tax | PAYG withheld by employer | You manage your own tax (see our ABN/GST guide) |
| Leave & super | Entitled to leave; super paid by employer | No leave entitlement; super isn’t automatic — you may still be entitled to it (see below) |
| Insurance | Generally covered by employer’s policies | You hold your own public liability & professional indemnity cover |
| Who you can work for | Typically one employer at a time in that role | Can work with multiple studios/gyms/clients simultaneously |
| Tools & equipment | Often provided by employer | Often your own, though gym floor access may be provided |
Insurance is one area worth sorting early. As a self-employed contractor you’ll typically need your own public liability and professional indemnity cover, since most gyms and studios don’t extend their policy to cover you.
Can you do both?
Yes, and a growing number of Australian fitness professionals do exactly this: running their own independent sessions as a self-employed contractor, while also picking up contract or cover work at a studio or gym. Plenty of trainers move between employed, contracted and independent arrangements, or run more than one at once, as their circumstances change.
When cover or contract work can still count as employment
Here’s the catch: picking up cover work as a self-employed contractor doesn’t automatically make it genuine contracting in the law’s eyes. Since 26 August 2024, Fair Work uses a “whole of relationship” test to decide this — looking at how an arrangement actually functions day to day (who controls your hours, who carries the financial risk, who supplies the equipment, whether you can delegate the work or work elsewhere) rather than just what the contract is titled. A business that deliberately mislabels an employment relationship as contracting to avoid entitlements is committing sham contracting, which is unlawful.
What this can look like: Steve is a personal trainer who signs on with a gym as a “contractor” and invoices monthly with his ABN. In practice, the gym sets his weekly shifts, books his clients through its own app, supplies all the equipment, and pays him a flat rate whether he trains one client that hour or three — he’s never paid directly by a client. On paper, Steve’s a contractor. Against the factors above, his situation reads a lot more like employment, regardless of the invoice and the ABN.
This isn’t a legal determination, just a way to visualise how the test applies. If your own arrangement looks like Steve’s, the Fair Work Ombudsman is the right place to get your specific situation properly assessed.
Do independent contractors get superannuation?
Superannuation is worth checking separately, even if you’re confident you’re a genuine contractor. The ATO uses its own test: if you’re engaged mainly for your personal labour — meaning you have to do the work yourself and can’t send a suitably qualified substitute in your place — the studio or gym may owe you Super Guarantee contributions on top of your invoice, regardless of your ABN or the “contractor” label. This is the detail behind a lot of the “does this rate include super?” confusion on casual cover posts.
For example: Priya invoices a Pilates studio for a single reformer class she covers there each week. She’s not the studio’s employee, and isn’t rostered elsewhere in the business — but she teaches that class herself every time, with no arrangement to send another instructor in her place. On these facts, the studio may owe her super on top of what she invoices, even though she’s a contractor in every other sense.
The ATO has a specific test for this, and it’s worth checking your own arrangement against it directly rather than assuming either way.
Frequently Asked Questions
What’s the difference between an employee and an independent contractor in fitness?
An employee works under an employer’s direction and schedule, receives a wage with leave and super entitlements, and has tax withheld automatically. A self-employed contractor runs their own business, sets their own fees and schedule, generally works with multiple clients or venues, and manages their own tax and insurance. Super isn’t automatic for contractors, though some may still be entitled to it — see above.
Can I work as a contractor for one gym and be an employee at another?
Yes. This is common, and one of the reasons the “do both” approach has become practical for fitness professionals. Just make sure each arrangement matches how the relationship actually operates, since classification is assessed per relationship, not as a single label across your whole career.
What is sham contracting?
It’s when a business represents a worker as an independent contractor when the relationship is actually one of employment, typically to avoid paying entitlements like leave and superannuation. It’s unlawful under the Fair Work Act. If you’re concerned about your specific situation, the Fair Work Ombudsman (fairwork.gov.au) provides free guidance.
Do contractor fitness trainers get superannuation?
Not automatically — but the ATO’s test looks at whether the contract is wholly or principally for the contractor’s labour, and whether they’re required to perform the work personally, with no right to delegate it to someone else. If both apply, the hiring gym or studio can still owe Super Guarantee contributions, regardless of the ABN or the “contractor” label. Check the ATO’s guidance directly for how this applies to your own arrangement.
Check early, not after months of doubt
Classification isn’t fixed for your whole career. Plenty of fitness professionals move between employed, contracted and independent arrangements, or run more than one at once, as their circumstances change.
If a contract you’re offered doesn’t sit right, raise it before you sign rather than months into the arrangement. If in doubt, the Fair Work Ombudsman’s guidance is free, and it’s the right place to check.
This article is general information about how employment classification works in Australia, not legal advice. For guidance on a specific contract or working arrangement, contact the Fair Work Ombudsman (fairwork.gov.au) or a qualified workplace lawyer.
Sources
- Fair Work Act 2009 (Cth) — section 15AA “whole of relationship” test, as amended by the Fair Work Legislation Amendment (Closing Loopholes No. 2) Act 2024
- Fair Work Ombudsman — Independent contractor changes
- Fair Work Ombudsman — Whole of relationship test
- Fair Work Ombudsman — Sham contracting
- Australian Taxation Office — Super for independent contractors