5Services contract

5 Services contract

General meaning (1) A services contract is a contract for services: (a) to which an independent contractor is a party; and (b) that relates to the performance of work by the independent contractor; and (c) that has the requisite constitutional connection specified in subsection (2).

Note: Conditions or collateral arrangements relating to a services contract may be taken to be part of the services contract: see subsection (4).

The requisite constitutional connection (2) A contract for services has the requisite constitutional connection if: (a) at least one party to the contract is: (i) a constitutional corporation; or (ii) the Commonwealth or a Commonwealth authority; or (iii) a body corporate incorporated in a Territory in Australia; or (b) one or more of the following subparagraphs is satisfied: (i) the work concerned is wholly or principally to be performed in a Territory in Australia; (ii) the contract was entered into in a Territory in Australia; (iii) at least one party to the contract is a natural person who is resident in, or a body corporate that has its principal place of business in, a Territory in Australia. (3) Without limiting its effect apart from this subsection, subparagraph (2)(a)(i) also has the effect it would have if the reference to a constitutional corporation were, by express provision, confined to a constitutional corporation that has entered into the contract for the purposes of the business of the corporation. Conditions and collateral arrangements (4) A condition or collateral arrangement that relates to a services contract is taken to be part of that services contract if, were the condition or arrangement itself a contract for services, it would have the requisite constitutional connection.