Freelancer Contract
A freelancer contract protects you on every engagement — confirming scope, securing payment, and establishing that you own your time and output.
What is a Freelancer Contract?
A freelancer contract is a project-based agreement between a freelancer and a client that defines the scope of the work, the payment terms, the IP ownership, the delivery timeline, and the nature of the relationship. It is the foundational document that protects the freelancer's commercial interests on every engagement.
Unlike an employment contract, a freelancer contract establishes that the freelancer is an independent business providing services — not an employee. This affects tax obligations, superannuation, and entitlements. However, if the reality of the engagement resembles employment (exclusive hours, direction and control, provision of tools), the arrangement may be considered sham contracting under the Fair Work Act.
For freelancers, a contract does three critical things: it confirms exactly what you agreed to do, it establishes your right to be paid, and it confirms you own (or have licensed) the work you create. Operating on handshakes and emails leaves all three of these at risk.
When do you need a Freelancer Contract?
- ✓Before beginning any paid project for a client
- ✓When a client wants to engage you on a new or renewed project
- ✓When the scope of an existing project is being changed
- ✓Before investing significant time in a project without payment confirmation
- ✓When working with a new client for the first time
Key provisions to include
Project Scope
What you will deliver, the format, and what is explicitly excluded from the engagement.
Fees & Payment Schedule
Your rate, payment milestones, and when invoices are due.
Deliverables
What the client will receive, by when, and in what format.
Revisions
Number of revisions included and the rate for additional revision rounds.
IP Ownership
Who owns the work created — the freelancer, the client, or a shared arrangement.
Contractor Status
Confirms you are an independent contractor, responsible for your own tax and not an employee.
Kill Fee
Compensation due if the client cancels the project after work has begun.
Confidentiality
Obligation to keep client information confidential during and after the engagement.
Common mistakes to avoid
Starting work without a signed contract — verbal agreements are difficult to enforce
Not specifying the number of revision rounds included, leading to endless scope changes
Not including a kill fee, leaving you uncompensated for work done on a cancelled project
Not tying the IP transfer to payment — if the client does not pay, you should retain the IP
Not including a late payment provision, making it difficult to recover unpaid invoices
Frequently asked questions
Do I need a contract for every project?
Yes. Even for small or short projects, a written contract confirms scope and payment terms, creating a basis for resolving disputes. For very small amounts, a detailed email exchange confirming scope and rate can serve as evidence of the agreed terms, but a formal contract is always preferable.
Who should own the IP in my freelance work?
This is negotiable. Many clients expect to own the IP in custom work they commission, and this is often appropriate if they are paying for a fully custom deliverable. However, you can retain IP in any background tools, templates, or frameworks you use, with a licence to the client for the final deliverable. Consider including a clause that IP transfers only on receipt of full payment.
Can I include a clause to use the work in my portfolio?
Yes. A portfolio rights clause giving you the right to display the work in your portfolio (while maintaining confidentiality of business details) is reasonable and commonly accepted by clients. Include it as a standard provision in your template.
Am I entitled to superannuation as a freelancer?
Sometimes. If you work substantially full-time for a single client under a services contract, the superannuation guarantee may apply even if you are nominally a contractor. If you have an ABN and genuinely provide services to multiple clients, superannuation generally is not payable by the client. This depends on the specifics of your arrangement.
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