What was the difference between a convict and a free settler?

Answer 1

Convicts were convicted criminals. They had to serve a period of seven, fourteen or twenty-one years, or "the term of their natural life". They had few rights; few possessions of their own; had to abide by the rules of the people guarding them; had to do the work they were told to do and work for whomever they were sent to; and had few choices when it came to food. They could be punished with flogging, or reduced rations.

Free settlers were just that: free settlers. They were ordinary people who had come to Australia for a new life, and in the early days were allocated land which they were free to work however they best saw fit.