Well said Tailwheel. I get sick of the "I'm not getting paid enough" brigade AFTER they have AGREED to and ACCEPTED rubbish wages in the first place.
Walk away and look for a decent job!
And although it seems odd to do a course without doing this research first, good on this guy for asking around now and hopefully other newbies are reading this too.
If the employer tells you that you will have to get an ABN and be a "Contractor" then turn around and walk away. A flying instructor acts under the direction of the CFI at all times so it instrucing doesn't fall under the definition. Plus it could leave you with some very unpleasant insurance liabilities if something goes wrong. The only way we will stop these "You are a contractor" types is if no-one will work for them. Tell me I'm dreaming.
They undercut the employers who are doing the right thing because they wriggle out of super, compo etc. And they do it by telling the eager newbie that this is the only way they will ever get a start in the industry.