Engagement of contractors and consultants procedure


To ensure that compliance with ATO, SRO and WorkSafe requirements are in place when external contractors are engaged by RMIT staff members.


This procedure is applicable for each engagement of external consultants and contractors.


Overseas registered entities and individuals.


First clarify whether you are purchasing the services of a consultant/contractor or employing staff to complete work.

Only ‘genuine’ consultants/ contractors will be engaged and paid via accounts payable, with all other service providers deemed to hold employee status and remunerated via payroll.

The following table provides some guidance to assist a staff member determine if the services to be engaged result from a genuine contractor / consultant. Given the qualitative nature of the differences between each category, each engagement must be judged upon its individual merits.

Contractor / Consultant



Offered to the public and other enterprises.

Offered to RMIT only.


Specialised service not ordinarily available within RMIT

Part of RMIT core operations


Paid for results provided or agreed output delivered.

Paid for time worked.

Equipment and consumable materials

Supplies own equipment and materials.

RMIT provides equipment and consumable materials


Scope of work agreed, but has freedom to decide how work is to be performed

Receives direction from RMIT staff and must perform duties of the position

Leave entitlements

None provided

Receives paid leave from RMIT


Engagement of contractor / consultant form (PDF 199 KB, 4p)


Failure by RMIT to comply with certain legal requirements may result in significant penalties being levied (for example: Australian Taxation Office [PAYG: pay as you go, SGL: superannuation guarantee levy], State Revenue Office [payroll tax], WorkCover premium). Staff should contact the Deputy Director Financial Operations for or Recruitment Manager (Human Resources) for assistance. Alternatively please e-mail financial.operations@rmit.edu.au.

If a breach of any relevant legislation is identified and RMIT is penalised, the fine will be recharged to the originating area.

In general, an individual will not be able to be recorded as a Consultant / Contractor where they provide teaching, research or ancillary academic and support services (either casually, part or full time) as these type of services form part of RMIT’s core offering and are generally provided by an individual in their capacity as an employee.

Contractor decision flow chart

If the Contractor / Consultant has not previously been engaged by RMIT or their situation has changed, please complete a New vendor request form (DOC 50.5 KB, 2p) and submit this to Accounts Payable.

RMIT Quotation and Tender policy should be consulted for the engagement of any Contractor / Consultant.

RMIT Conflict of Interest and Outside Activities policies should be consulted when current or a former staff member is considered for the provision of services to RMIT as a Consultant / Contractor.

[Next: Supporting documents and information ]