{{ propApi.closeIcon }}
Our industry
Our industry $vuetify.icons.faArrowRight
Housing industry insights Economics Data & forecasts Tailored research and analysis Advocacy & policy Advocacy Policy priorities Position statements Submissions News and inspiration Industry news Member alerts Media releases HOUSING Online
Business support
Business support $vuetify.icons.faArrowRight
Become an apprentice host Hire an apprentice Why host a HIA apprentice? Apprentice partner program Builder & manufacturer program Industry insurance Construction legal expenses insurance Construction works insurance Home warranty insurance Tradies & tool insurance Member perks Toyota vehicles The Good Guys Commercial Fuel savings See all Planning & safety solutions Building & planning services Safe Work Method Statements (SWMS) Solutions for your business Contracts Online Advertise jobs Trusted support & guidance Contracts & compliance support Industrial relations
Resources & advice
Resources & advice $vuetify.icons.faArrowRight
Building it right Building codes Australian standards Getting it right on site See all Building materials & products Concrete, bricks & walls Getting products approved Use the right products for the job See all Managing your business Dealing with contracts Handling disputes Managing your employees See all Managing your safety Safety rules Working with silica See all Building your business Growing your business Maintaining your business See all Other subjects Getting approval to build Sustainable homes See all
Careers & learning
Careers & learning $vuetify.icons.faArrowRight
A rewarding career Become an apprentice Apprenticeships on offer Frequently asked questions Study with us Find a course to suit you Qualification courses Learning on demand A job in the industry Get your builder's licence Continuing Professional Development (CPD) Find jobs
HIA community
HIA community $vuetify.icons.faArrowRight
Join HIA Sign me up How do I become a member? What's in it for me? Mates rates Get involved Become an award judge Join a committee Partner with us Our initiatives HIA Building Women GreenSmart Kitchen, bathroom and design hub Get to know us Our members Our people Our partners Support for you Charitable Foundation Mental health program
Awards & events
Awards & events $vuetify.icons.faArrowRight
Awards Awards program People & Business Awards GreenSmart Australian Housing Awards Awards winners Regional Award winners Australian Housing Award winners 2024 Australian Home of the Year Enter online Industry events Events in the next month Economic outlook National Conference Events calendar
HIA shop
HIA shop $vuetify.icons.faArrowRight
Most popular products National Construction Code Vol 1 & 2 Waterproofing wet areas AS 3740:2021 HIA Guide to Waterproofing HIA Guide to NCC Livable Housing Provisions Top categories Building codes & standards Contracts & documents Guides & manuals Safety products Signage For your business Contracts Online Digital Australian Standards Digital Resource Library Forecasts & data
About Contact Newsroom
$vuetify.icons.faMapMarker Set my location Use the field below to update your location
Change location
{{propApi.text}} {{region}} Change location
{{propApi.successMessage}} {{region}} Change location

$vuetify.icons.faPhone1300 650 620

APSI and the results test

This policy confirms HIA's support of the APSI test to determine the status as an independent contractor.

HIA’s Position statement

  1. Greater consistency in the legal treatment of independent contractors and employees in relation to a range of Commonwealth and state legislation is of paramount importance to the residential building industry.
  2. HIA supports the inclusion of the Alienation of Personal Services Income (APSI) rules in the Income Tax legislation to allow tax payers to self-assess against the test of ‘independence’.
  3. The Commonwealth, State and Territory Governments should adopt a single national objective test of who should be treated as an independent contractor.
  4. The appropriate single national objective test is the ‘results test’ component of the Alienation Personal Service Income (APSI) rules.
  5. i) Once a person obtains an ABN they are and should be treated as a business for all purposes; and ii) The burden is on the regulator to prove otherwise.


  • Under the residential building industry subcontracting system, contractors provide their personal services to achieve work outcomes. They are small business persons who work for profit.
  • A key component in preserving contracting independence is to ensure that contractors are treated as businesses by the tax laws, including being able to access business tax deductions.
  • Income tax legislation adopts the Alienation of Personal Services Income Test (APSI) to differentiate independent contractor arrangements from PAYG employees in relation to taxation. Contractors who satisfy the APSI test qualify to utilise the business tax deductions regime.
  • The APSI rules are intended to protect the integrity of the taxation system by preventing individuals who generate income from their personal services from reducing their liability to taxation by diverting income through a company, partnership or trust, and to clarify the work-related deductions available to the individual and interposed entity.
  • APSI has two main elements. Firstly, the 'results test' which individuals can self-assess against. The results test is based on the traditional criteria used to distinguish independent contractors from employees, namely, working to produce a result; providing their own plant, equipment and tools of trade; and being liable to rectify defective work.
  • Under the second element, if the results test is not satisfied, tax payers are able to move to other tests including the '80/20 rule', that the business employs its own workers and the unrelated clients test. A binding personal services business determination from the ATO is also available.

Policy endorsed by HIA National Policy Congress: May 2014; Re-endorsed with amendments 2020.

Share with your network:
More articles on:
{{ tag.label }} {{ tag.label }} $vuetify.icons.faTimes
Find the latest expert advice, guides and much more!
HIA Advocacy
View all $vuetify.icons.faArrowRight
12 Jun
A migration system for Australias future Discussion paper

HIA recognises the important contribution that skilled migrants make to the Australian economy and the role that a well-designed skilled migration program has in ensuring Australia’s ongoing prosperity.

12 Jun
National Dust Disease Taskforce Phase 2 Consultation Paper

Any definition of ‘engineered stone’ should be targeted to the resin-based, high silica content artificial stone that has been used in the stone benchtop manufacturing industry.

31 May
Illegal Logging Prohibition Amendment Bill 2024

HIA prepared a submission to the Illegal Logging Prohibition Amendment (Strengthening Measures to Prevent Illegal Timber Trade) Bill 2024.

31 May
Building Bill 2024 - Consumer Protection (NSW)

HIA responded to the Consultation Paper on the Building Bill 2024 – Consumer protections for home building work (Paper) issued by the Building Commission in April 2024.

24 May
Jurisdiction of the Federal Safety Commissioner

Are your interested in tendering for federally funded government building work? Use HIA’s flowchart to help you determine if you are required to comply with the Federal Work Health and Safety accreditation scheme.

22 May
BCITF 2024 Statutory Review

Housing Industry Association (HIA) submission to the 2024 Statutory Review of the Building and Construction Industry Training Fund and Levy Collection Act 1990. Attracting, training, and retaining skilled workers is fundamental to the ability of the residential building industry to deliver the homes Australia needs.