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.
Integrity of Contract Campaign:
Was "Tom" Screwed?

In July 2009 we announced the first phase of our Integrity of Contract campaign.

Basically, integrity of contract means that when an independent contractor (a self-employed person) enters a commercial contract, he or she can have certainty that the contract and the behaviours accompanying the contract conform to the common law principles of contract. This is the best way of ensuring 'fairness' under contract.

In early September, however, we were contacted by an ICA member (we've identified him only as "Tom") who is unhappy with the treatment he has received from a federal government department under a commercial contract. We have looked closely at the case and, given the information we have seen, the member's problem appears to be a perfect example of breach of contract integrity on behalf of the department. ICA Executive Director Ken Phillips followed this up with an article in the Business Spectator.

[What do you think of "Tom's" case? Please read the original posting and if you would like to contribute to this discussion, please e-mail your thoughts to us at: integrity@contractworld.com.au.]

On 5 October 2009, an ICA member wrote:
    One of the fundamental principles of a democratic state is that all citizens are equal in the eyes of the law. By contrast to a totalitarian regime where there are different rules for different people. George Orwell once famously wrote in his novel "Animal Farm": "all animals are equal but some are more equal than others" as a parody of corrupt political systems. His message in that novel is also that we should look to the true intent of the people in our society that hold themselves out as leaders. What are they really saying and what are they really doing?

    The current government has introduced the Fair Work Act this year. In a clear expression of worker solidarity they have implemented a system that purports to protect all workers. Moreover, in a dramatic expression of egalitarianism they have also included independent contractors in the legislation. But have they really?

    Many independent contractors work under an ABN. They must operate this way if they are to comply with the taxation system and be able to function effectively. Try providing your services to a business and ask them to deduct tax on your behalf. Some organisations will but many wont as they do not want the relationship to be construed as that of employer-employee. So many contractors operate under their own ABN. However, if you do then you have no rights as an independent contractor under the Fair Work Act. This is not presumption, it is fact. Ring Fair Work Australia and ask them. So there are rights for some independent contractors but no rights for others. Sound familiar?

    It seems odd that a government with clear socialist leanings would expose itself in this way. They have implemented legislation in a democratic nation that has clear signs of totalitarian intent. They will act for some of the people but not all of the people. Isn't the role of a democratically elected government to represent every citizen?

    It is an interesting corollary between the current government and Orwell's Animal Farm: "When the animals take over the farm, they think it is the start of a better life. Their dream is of a world where all animals are equal and all property is shared. But soon the pigs take control and one of them, Napoleon, becomes the leader of all the animals. One by one the principles of the revolution are abandoned, until the animals have even less freedom than before.

On 17 September August 2009, Neville wrote:
    I read the case of "Tom". It seems to me that the dept concerned were looking for an employee on the cheap---ie having someone to perform duties but not pay the ongoing costs of an employee. In the case of someone with knowledge of the computer industry, their own costs such as research and pi insurance alone are considerable.

On 21 September August 2009, ICA Executive Director Ken Phillips responded:
    Agreed Neville. It seems its common for departments to underestimate the real costs of their own direct employees. When they compare to contractor costs, they are not doing a real apples-to-apples comparison. Regards. Ken P.

On 17 September 2009, Amanda commented:
    My thoughts on the article about "Tom" are that he should never have started the work if he wasn't satisfied a written contract had been properly agreed to by all parties. DEEWR would probably have been less likely to breach it if they had actually dotted the i's and crossed the t's of the contract, so to speak. I feel sorry for Tom, but having a properly signed contract is probably the easier thing to advise contractors to do, rather than the prospect of "reform", which seems unlikely.

On 21 September 2009, ICA Executive Director Ken Phillips responded:
    One should always try to get a written contract in place first. But often in dealing with a large organisation they can't produce the contracts quickly enough and the line managers are wanting work done 'urgently'. It seems to us that Tom was acting in reasonable good faith and was trying to help out DEEWR. We've all done this on occasions and just hope we don't get caught out. Regards. Ken P.

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