Charter of Contractual Fairness
On 1 July we launched our Charter of Contractual Fairness

We have heavily drawn the principles of contract fairness from the new consumer unfair contract protections laws. If it's fair for consumers, it's fair for small business people - the self-employed and independent contractors.

We are currently writing to Australian corporations asking them to commit to contract fairness in their dealings with small business people.
Election Face-off 2010
Here's how the 2 sides currently shape up for small business/self employed people! (10 July 2010)
Gillard's ALP

So far, they've told us "here's what we've done!"

• Started a superannuation clearing house
• Begun a small business online inquiry service
• Established a Small Business Advisory Committee
• New liability contract guidelines for government procurement
• National Business Name Registration
• A new guide for self-employed people
Abbott's Coalition
They've announced the first part of "here's what we're going to do!"

• A dedicated Small Business Minister who will be in Cabinet
• A new Small Business Ombudsman to handle and resolve small business complaints about the federal government
• The extension of consumer unfair contract protections to small business people
• Retention of the current self-employed (PSI) tax laws
• Stop small business red tape on Paid Parental Leave
• Mr Abbott's and Mr Billson's joint press release
What we've been asking for
• The extension of consumer unfair contract protections to small business people

• Retention of the current self-employed (PSI) tax laws. Our letter to the PM (28 May 2010)

Failure to fix unfair business contracts
ICA says "extend unfair contract protections for consumers to small business".

New laws:
Legislation #1 (March 2010)
Legislation #2 (June 2010)

Here's our summary of the situation.
How the legislation defines unfair contract terms.
Why small business people should have TPA protections from unfair contracts.
We need an answer on tax, please
We've made it quite clear that self-employed (PSI) tax should not be changed.

We've written to the PM for an answer, but we do not yet have a reply.

Tony Abbott has been clear. NO change!
Industry/Retail super funds must come out
The Cooper Review into superannuation says the big funds are not disclosing enough and must be forced to do so. This is vital. See Chapter 4.

Here's why workers' money is at risk if disclosure is not enforced.
Look after your retirement
The Cooper Review of superannuation says Self Managed Super Funds are good and need little change to existing arrangements. This is welcome. See Chapter 8.

The Report also seems to have stopped the attack against SMSF's.
Stand Up for Your (Contract) Rights!
We're monitoring contracts in general and promoting good contracts in particular. For example:
Another bad contract (Jun 2010)
One of the worst contracts we've seen (Jan 2010)
'Tom' versus DEEWR (Nov 2009)
But a positive development from government
Ken Phillips comments
And some interesting discussions
Central Banks on Debt
Since mid-May, central banks have been worried about sovereign debt. Click here for a list of useful links and summaries.
Problems with Phoenix companies
Two ICA members' tell their stories
ATO information on reporting suspect activity.

Govt's attempts to do something:
ICA comment

Newspaper comment:
The Australian
The Age/Sydney Morning Herald
Business Spectator

What 'Tom' thinks
What 'Jim' thinks
Dick Davies Writes...
"...the human fabric of the workplace precedes in importance that of technology!"
Dick Davies prods us to think about management, independence and motivation. Click here.
Stop Sham Contracts!
ICA supports the prevention of sham contracts. We monitor what's happening with them:
One person's story
Successful FWO prosecution (Dec 2009)
Info from Fair Work Ombudsman (July 2009)
First sham contract prosecution: ICA summary
Make a complaint to FWO
Business Spectator article
Read the debate
... Unquote
The Pessimists' Economic Views
(Posted January 2010)
We've brought together some pessimistic views about economics and likely economic trends in 2010:
US toxic loans
'US as sick as Greece'
Ken Phillips's summary
An 'IMF' perspective
Predicting 2010
Government debt a giant ponzi scheme?


Click to enlarge.

Ken Phillips on the debt equation


Watching Goldman Sachs
Rolling Stone magazine has blown the lid on Goldman Sachs:
Article 1 [July 2009]
Article 2 [April 2010]
Article 3 [May 2010]
Tax burden: UK versus Australia
Just as the UK is moving toward more sensible small business (contractor) tax laws, in Australia we're having to defend the progress we've made.
Laughing lawyers
You'll be amazed by the 'slips' that some lawyers make in court.

Dick Davies on Contracts:
Your Thoughts and Opinions


After reading our recent post on the plight of "Tom" and his dispute with the Department of Education, Employment and Workplace Relations, long-time industry observer and management consultant Dick Davies wrote a short article for us on the possibility of contractors cutting out the recruitment middle men and organising themselves to do it instead. Responses to that story appear below.

[Do you have any thoughts or opinions about Dick's suggestions? Please read his posting and if you would like to contribute to this discussion, please e-mail your thoughts to us at: dickdavies@contractworld.com.au.]

On 26 September August 2009, an ICA member wrote:
    Dick
    Your observations are correct and insightful. The problem is that organisations (private and public sector) only want to engage with labour hire firms. There are several examples of ICs banding together to tout for work but they are generally ignored when it is discovered that they are really a firm of professionals. This is a bizarre situation as many organisations will form agreements with panels of lawyers, accountants and other consultants but when it comes to independent contractor they only deal with recruitment/labour hire firms. The public sector, for example, will engage a labour hire firm that then has the responsibility of locating a resource. In some way the APS sees the engagement of an IC as a temporary employee yet the ATO has legislation to try and prevent this and the courts have tests that make operating in such a fashion difficult. The end result is that ICs find themselves in a bizarre situation of wanting to be treated as independent, deliverable based professionals and some sort of quasi employee.... The reality is that many organisations rely upon HR departments to engage resources and these HR departments can only seem to deal with HR-like firms. It is frustrating.

On 24 September August 2009, Serg wrote:
    This is the first I have replied to any email. Been a contractor for 15 years. Who is listening that is really required (Governement, Employers, etc) are taking any notice off these things? Tax man screws contractors, Government screws contractors, and unfortunately laws don't protect any contractor either. Can you highlight any major improvements for contractors over the last 10 years?

    Kind regards
    Serg.

On 26 September August 2009, ICA Executive Director Ken Phillips replied:
    Serg
    We think we have seen some improvements. The tax laws do give some equal treatment to independent contractors and the ATO has a very improved approach to dealing with us. But of course who wants to pay tax?!

    The Independent Contractors Act does offer protection from unfair contracts but taking legal action is always difficult.

    Our big emphasis now is on the culture of behaviour by government and big business to us little guys. They need to lift their game and respect contracts. It's a long campaign and we want to work with government and big business to achieve good results.

    Rgds. Ken

[If you would like to contribute to the discussion, please e-mail your thoughts to us at: dickdavies@contractworld.com.au.]