In Queensland's personalised transport industry, a driver will generally either be self-employed (this may be as an independent contractor) or an employee.

It is important to know what your working status is because self-employed people and employees have different entitlements and responsibilities.

It can be difficult to know whether you are self-employed or an employee. Even if a driver is called a 'contractor', they may actually be an employee, depending on the situation.

The summary below is based on conventional industry practice. Your working status may differ depending on individual circumstances. If you're not sure whether you're self-employed or an employee, you should seek assistance from industry organisations, an independent ombudsman or government agencies, or obtain legal advice.

Types of workers

There are different types of working arrangements in place across the personalised transport industry.

Ride-booking driver

Ride-booking drivers generally enter into a written agreement with the provider of a ride-booking mobile application to access a digital technology platform.

Ride-booking drivers are self-employed (generally an independent contractor).

Taxi driver

Taxi drivers generally enter into written or verbal agreements to do work for 1 or more taxi operators.

Taxi drivers are generally self-employed. In very limited circumstances, drivers may work as employees.

Limousine driver

Limousine drivers generally enter into written or verbal agreements to do work for 1 or more limousine operators.

Limousine drivers are generally self-employed. In limited circumstances, drivers may work as employees.

Self-employed drivers

Self-employed people run their own business. Drivers who are self-employed generally set their own hours of work and don't have a minimum wage or pay rate.

If you're self-employed, you are running a business and should:

• obtain an Australian Business Number (ABN)
• register for goods and services tax (GST)
• pay tax
• pay superannuation
• ensure you have appropriate insurance for the type of driving that you do.

Before starting work as a personalised transport driver, you should complete a budget to ensure you understand your likely outgoing costs.

Read more about common obligations for self-employed drivers.

The type of driving that you do in the personalised transport industry may depend on whether you:

• own or lease a vehicle
• rent a vehicle
• bail a vehicle.

Ride-booking drivers

If you want to provide booked-hire services in a vehicle other than a taxi or limousine, the agreement will depend on whether you have your own vehicle.

If you have your own vehicle, you will typically require a services agreement.

If you don't have your own vehicle, you will typically require a services agreement and a rental agreement.

Services agreement

After the provider of a ride-booking application has reviewed the documents lodged by a prospective driver, the provider will send a prospective driver a copy of its services agreement.

You must accept the terms and conditions of the services agreement before you can access trip requests.

Services agreements may cover:

• how fares and cancellation fees are calculated
• when payments to you will be remitted
• how the service fee payable to the ride-booking application provider is calculated
• service standards that you must satisfy, and where those standards can be found
• your responsibility for maintaining:
  • insurance to satisfy the minimum requirements to operate a private passenger vehicle in Queensland
  • workers' compensation insurance as required by Queensland law.

Rental agreement

Some companies rent vehicles to drivers who do not have an eligible vehicle or don't want to use their own car. This arrangement is generally captured under a vehicle rental agreement.

Key features of a rental agreement include:

• the trade-off between the insurance premium included in the rental amount and insurance excess. You should consider whether you can afford the out-of-pocket excess amount in the event of a claim
• unpaid rental fees are minor debts. If you owe money to a rental company, they may seek to recover the debt in the Queensland Civil and Administrative Tribunal (QCAT).

Taxi and limousine drivers

If you take and return a vehicle at the start and end of each shift, you will typically require a bailment agreement.

If you take a vehicle for a longer period, or until a specified date, you will typically require a lease agreement.

Bailment agreement

A bailment agreement allows you to take possession of a vehicle and use it to provide passenger transport services, while ensuring the owner of the vehicle retains legal ownership and right to have the vehicle returned. There are 2 common forms of bailment agreements:

1. Fee paid to operator based on percentage split of fare revenue
   You agree to pay a percentage of the chargeable fares to the operator. The amount paid to the operator is based on a percentage split of total fare revenue.
2. Fee paid to operator based on set pay-in
   You agree to pay a fixed amount to the operator. The amount paid to the operator is based on a set amount paid up-front, regardless of the amount taken in fares.

Other important terms in a bailment agreement

You can also be asked to contribute money towards some of the other costs of operating a taxi or limousine, such as:

• fuel used per shift
• vehicle insurance
• personal injury insurance.

A bailment agreement does not have to be in writing. However, a written agreement may provide greater certainty regarding the terms of the agreement. You should seek independent advice about which type of agreement (written or verbal) best meets your circumstances.

If you are unsure about the bailment fee, contributions to expenses or any of your other obligations, speak to the operator you have an agreement with.

Lease agreement

A lease agreement allows you to take exclusive possession of a licensed taxi vehicle and use it to provide passenger transport services during the period of the lease.

Under a lease agreement, you will pay a fee to the lessor based on the lease rate for a particular period.

Unlike a bailment agreement, it is unlikely that a lease will allow you to end the agreement without reasonable notice. A lease agreement will usually contain a minimum notice period – the amount of time between one person telling the other that they would like the agreement to end, and the agreement actually ending.

Different types of lease agreements

Whilst both fall under a lease agreement, the lease of a vehicle is not the same as the lease of a licence (sometimes referred to as a 'plate') by a licence owner to someone operating a taxi business or limousine business.

More information on bailment agreements

Department of Transport and Main Roads model taxi service bailment agreement

The Queensland Government no longer regulates the requirement for mandatory written bailment agreements between taxi operators and drivers.

We have published a model bailment agreement which may be used by operators and drivers.

Taxi Council Queensland standard bailment agreement

Taxi Council Queensland has published a standard bailment agreement which may be used by operators and drivers.

The standard bailment agreement covers general terms and conditions for bailment. It covers topics such as what payment will be given by the driver to the operator for the right to bail their vehicle for a period of time as well as any other entitlements or obligations agreed to.

Employment agreements

In some limited circumstances, a taxi or limousine driver may receive a wage or salary in return for providing services for the benefit of an operator. This type of agreement is an employment agreement.

Employment agreement

An employment agreement is an agreement between an employer and an employee that sets out the rights and obligations of each party.

According to the Fair Work Ombudsman, an employee usually:

• works standard or set hours
• has an ongoing expectation of work
• is paid regularly
• is entitled to received paid leave (for example, annual leave, personal/carers' leave)
• has their tax and superannuation handled by their employer.

Visit Fair Work Ombudsman for more information.

Employment agreements are unusual in the personalised transport industry. Most drivers perform their work in a way that is similar to an entrepreneur with their own small business. Drivers manage the vehicle during their shift and agree to share the fares received with the operator in return for use of the vehicle.

Working as a self-employed person

There are a number of rules and regulations to keep in mind if you're self-employed.

The matters mentioned below are not exhaustive but are a good starting point for all drivers who are self-employed – no matter what type of vehicle you drive (taxi, limousine, or ride-booking).

Registrations

If you plan to be a self-employed driver, you will need to complete a number of registrations.

Goods and services tax (GST)

The fares you charge for services are GST inclusive.

You must regularly pay the GST you collect to the Australian Taxation Office (ATO). The GST registration threshold does not apply to self-employed drivers.

Most Australian businesses must register for GST if they have a GST turnover (gross income) of $75,000 or more. Businesses that provide taxi travel or ride-booking services must register for GST regardless of their GST turnover.

You will need to register for GST from the day you start driving, regardless of how much you earn, and will be responsible for completing business activity statements.

Find more information about GST obligations, or phone the ATOs business infoline on 13 28 66.

Tax file number (TFN)

Make sure you are aware of your tax obligations before you start to drive.

You will need to ensure that you have a TFN appropriate for your operations:

• drivers operating as a sole trader must use their individual TFN
• drivers operating as part of a partnership, trust or a registered company will need to apply for a separate TFN.

For more information about applying for a TFN:

• sole traders can phone the ATO on 1300 720 092 to request a paper application
• partnerships, trusts and companies can apply online.

Australian business number (ABN)

You may require an ABN if you're carrying on an enterprise or you intend to register for goods and services tax (GST). If you are a self-employed driver, you must apply for an ABN.

An ABN is a unique way of identifying your business when dealing with a range of government departments and agencies.

Find more information about registering for an ABN, or phone the Australian Business Register's information line on 13 92 26.

Superannuation

If you are self-employed, you do not have to make super fund contributions for yourself. However, you may want to consider this as a way of saving for your retirement.

If you are an employee, it is compulsory for your employer to make superannuation contributions on top of your wages.

Find more information about superannuation guarantee obligations, or phone the ATOs superannuation infoline on 13 10 20.

Types of insurance

Self-employed people are generally responsible for their own insurance cover. In some instances, the owner of a vehicle you bail, lease or rent may hold insurance policies that provide certain types of cover. You need to be aware of the different kinds of insurance you may need for the type of driving that you do (and whether an operator has taken out insurance that provides you cover).

Drivers who are self-employed may need to consider the following.

Compulsory third party (CTP) insurance

CTP insurance is mandatory in all states and territories and provides compensation for physical injuries caused by vehicles.

Vehicle owners must select the correct CTP insurance class for the service they are providing, or the vehicle they are using. Different CTP insurance classes may apply to:

• taxis
• limousines
• private or leased booked hire vehicles
• booked hire vehicles subject to rental agreements.

CTP does not provide cover for any damage to the vehicle.

For more information about CTP insurance, you can:

• contact your insurance provider
• visit the Motor Accident Insurance Commission.

Vehicle insurance

In addition to Compulsory third party (CTP) insurance there are other non-mandatory types of vehicle insurance which you may wish to consider if you own a vehicle.

• Comprehensive insurance
  Comprehensive insurance covers damage to your own vehicle and other people's property, as well as theft and some other risks, plus legal costs.
• Fire and theft
  Fire and Theft insurance provides cover if your car is stolen, damaged by fire, or damaged by an uninsured vehicle.
• Third party property only
  Third party property insurance covers damage to other people's property and legal costs, but not damage to your own vehicle.

For more information about vehicle insurance, contact your insurance provider.

Workers' compensation and workplace personal injury insurance

If you have a business in Queensland and employ workers, you are required to insure them against work-related injuries with WorkCover Queensland.

If you are self-employed, you are generally not considered a 'worker' and should arrange your own insurance.

Whether you are covered by your employer-funded workers' compensation insurance or need to arrange your own workplace personal injury insurance will depend on your agreement and personal circumstances.

Personal accident insurance may be covered in your bailment agreement. You should read the conditions of your agreement carefully and consider what insurance is needed to ensure that you are financially secure should any accident or illness prevent you from working.

Find more information on workers' compensation and personal injury insurance, or phone WorkCover Queensland on 1300 362 128.

Public liability insurance

Public liability insurance is designed to protect you against the financial risk of being found liable to a third party for:

• death or injury
• loss or damage of property
• monetary loss resulting from negligence or the provision of unsafe services.

Whilst public liability insurance is not compulsory, the costs of being found liable or negligent can be extremely high. Where this is not included within your agreement, you should consider liability insurance to ensure you remain financially secure in the case of an incident.

For more information about getting the right insurance:

• consult an insurance broker
• visit Insurance Council of Australia.

Other insurance

If you are self-employed, you should talk with a number of insurance companies or insurance brokers to find the most appropriate insurance for your business.

Insurance requirements vary considerably from business to business, and your individual circumstances and needs may benefit from other types of insurance.

Licences and authorisations for driving

Information about the qualifications and checks you need to complete to become a personalised transport driver in Queensland is available from the Department of Transport and Main Roads (TMR).

TMR also provides information on the regulatory requirements for the industry and any upcoming regulatory changes.

For more information about the requirements for providing a personalised transport service, you can:

• phone TMR on 13 23 80
• read more about personalised transport
• visit a local passenger transport office.

Disputes about my working conditions

If a dispute arises between you and an operator about working conditions, you should meet and attempt to resolve the dispute. In the first instance, you should refer to your agreement which may provide guidance in relation to dispute resolution or, if represented, the Transport Worker's Union (TWU) may provide advice.

If, after you and the operator have met to attempt to resolve the dispute and the dispute is not resolved, you may be able to access mediation services through the Queensland Civil and Administrative Tribunal (QCAT).

For minor civil disputes or minor debt disputes, a mediator can assist you to discuss your differences and find a solution that suits everyone.

Find out more about how QCAT works and its processes, or phone QCAT on 1300 753 228.

You may wish to consider independent legal advice if you have a dispute about your pay or other working conditions. The Queensland Law Society may be able to refer you to a private lawyer or other services which may be able to help.

Help deciding if you're self-employed

The Fair Work Ombudsman is an independent statutory agency that provides information about Australia's workplace relations system as well as help resolving workplace issues.

Visit the Fair Work Ombudsman for more information or phone 13 13 94.

You can also:

• use the Australian Government's online independent contractors decision tool
• visit the Transport Worker's Union (TWU) or phone them on 1800 804 533.

The following legislation may be helpful when determining your work arrangements:

• Independent Contractors Act 2006 (Cwlth)
• Competition and Consumer Act 2010