I would suggest that as a contractor you would be required to cover your own workers comp insurance and super as a minimum. If you are a contractor and fail to cover your own super and workers comp I would suggest you may be in breach of the law. I haven't looked it up so someone may want to do that. Not sure how the insurance for passengers works. What are pilots getting paid as "contractors"? If I were in that situation I would demand that I was getting enough to cover the award casual rate plus super & insurance. Of course I wouldn't get the job because someone else would be willing to work for peanuts.