There's lots happening for new dispute resolution services for small business people. The Small Business Commissioner (SBC) model is being rolled out across Australia. Explanation of developments.
It seems that we at Independent Contractors Australia are often on the other end of the policy debate to the construction union, the CFMEU. It wants changes to tax laws to close down many independent contractors. ICA objects to the CFMEU's position and we said so on ABC radio on Tuesday. (MP3 audio and transcript.)
The CFMEU makes claims about sham contracts which we say are not valid. There are now strong laws to stop shams and we support these laws. If the CFMEU thinks there are sham contracts, all it has to do is lodge a complaint with the Fair Work Ombudsman. We are aware of the Ombudsman's undertaking many sham contracting investigations and we are monitoring the prosecutions.
In addition, the CFMEU has put a submission to the Henry Tax Review seeking to change the ABN and PSI laws. The ABN is designed to ensure that the tax office can effectively collect GST. The ATO have already tightened up ABN eligibility. It seems the CFMEU is far too often out of date with the law.
The CFMEU wants to alter the Personal Services Income tax laws. In our submission to the Henry Review we say this would create a mess. It was only early this year (2009) that the last legal test case was finalized, bringing clarity to the laws (see our commentary). We say the PSI laws are working and should be allowed to settle. Self-employed people need some certainty and the CFMEU agenda would disrupt this.
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