2 million self-employed
Their interests are our interest
It's your contract: Take control of it!
We say you should control your contract. Here's how. Check for clauses that are:
Red for Stop
Amber for Caution
Green for Go
You can also make use of our Contract Template to design your contract.

Matrixes and template are available here (ICA members only). Not a member? Join here for as little as $55.
You and Your Contract
Charter of Contractual Fairness.

Debate: Suck it up?

Contract problems?
Fixing business disputes
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.
Watching: Self-employed entrepreneurs
Our discussion on enabling innovation
Watching: The coordinated attack against self-employed in Australia
Do unions hate the self-employed?
Federal tax attack
Sham contracting small problem
Watching: New Technology
Opportunities and new threats for self-employed people
Charles Dickens on debt and misery
'Income 20 pounds; expenditure 21 pounds; result misery!'
Bureaucracy can be so confusing!
The perils of designing a traffic sign
Great truths ...
25 great quotations
Our Campaigning
We need unfair contract protections
Defend contractor tax laws
Watching: Your Superannuation
Scary super stories

Abbott says ATO to administer Super

Super Review and Govt response.
Watching: Work Safety Laws
Harmonised laws have big problems.
Watching: Government Contracts
Military Aircraft (JSF)

National Broadband Network
Watching: Fair Work Act
We're watching

What the AIG wants
Handy ATO Links
Filing your tax return:
A member's problem
ATO advice

Handy ATO tax links:
ATO debt collection: overview
ATO debt collection: 'Products'
Guide to managing your debt
Not-for-profit tax guide
Lodge your BAS online
PAYG withholding tax tables
New tax form: Taxpayer Statement of Account
New tax form: Notice of Assessment
Mortgage scams
Small business support
Payment arrangement calculator
Want an ATO visit?
ATO Help for small business
ABN eligibility rules
Self managing your tax debt

Handy Super links:
ATO SMSF compliance
ATO free seminars.
SMSF Admin advice
New Super clearing house
Tax on SMSF loans
Watching Global Economies
Watching Global Economies
Watching the USA
Watching China
Central Banks on Debt
Watching Housing Bubbles
Ken Phillips on the debt equation

Election 2010: Which Way?

18 August 2010

Recently, we've had emails from some Labor Party MPs saying that we are a 'front for the Liberal Party'. This is a bit of reverse history for us, because in the lead-up to the 2007 federal election we had people in the Liberal Party accusing us of 'being in bed with the ALP'. It appears that some Labor MPs think that our policy judgements indicate that we believe the Abbott Coalition has better policies for small business/self-employed people.

Here's a quick run-down on the policy issues as we see them. We seek to make our judgement calls based on each specific policy. We'd ask people to take these factors into account when weighing up how they intend to vote. As in most things, there are swings and turns and we all have to make our individual voting decision based on a balanced judgment.

Update 18 August 2010: The ABC's Lateline Business programme (17 August) featured both Minister Craig Emerson and his Shadow, Bruce Billson, discussing small business policy and the election. For the videos, go here [Introductory, 17 Mb] and here [Head to head, 39 Mb] or visit the Lateline website for videos and transcripts.

Gillard-Abbott Official small business policies

• The Gillard Government has not released a small business policy for this election. Note we wrote to the Small Business Minister on 3 August 2010 asking if a small business policy would be released. We have not received a reply (as of 17 August). (Note: Late evening, 17 August: the Government sent us this Ministerial Statement.)

• Here's the Abbott Coalition's policy. It's extensive and comprehensive.

Self-employed tax issues

We started campaigning on this back in late-2009 when Assistant Treasurer Nick Sherry backed the Board of Taxation's report to turn the Personal Services Income tax rules on their head. The proposals would create commercial transaction chaos for self-employed/small business people.
  • We wrote to the PM setting out our concerns.
  • The government has now written to us saying '... the issue is not government policy' and 'is not Federal Labor policy'.
  • We have replied asking for the same commitment the ALP gave at the 2007 election---namely, that 'no change' is proposed.
  • The Abbott Coalition has given a commitment to 'no change' to the PSI laws.
*** ICA's position: No change to PSI laws. We have argued this consistently since 2006. The ALP should not be surprised by our campaign to stop any change. Here are our reasons.

Unfair contract protections for small business people

We have been campaigning on this issue for more than three years, but we became particularly active in mid-2009. In mid-2009 the Labor Government proposed introducing unfair contract protections for consumers and small businesses. But by May 2010 it had dropped the protections for small business people. We want the protections introduced. Here's our analysis and our reasons.
  • The Abbott Coalition has promised to introduce unfair contract protections for small business people.
  • The Gillard Government withdrew proposals for unfair contract protections for small business people
*** ICA's position: We want unfair contract protections for small business people.

Mining tax

This is not a normal 'core issue' for ICA, but we do see the proposed tax affecting many thousands of self-employed people working in the mining industry. We have joined the opposition to the tax. Here are our reasons.
    • The Gillard Government has proposed the tax.

    • The Abbott Opposition will abolish the tax.
*** ICA's position: No mining tax.

Construction union harassment and violence

We have been long-time supporters of the retention of the construction cop, the ABCC. Here are our reasons.

We see repeated instances of construction workers being subjected to harassment, extreme bullying and even violence on construction sites.
  • The Gillard Government proposes to abolish the construction cop.
  • The Abbott Opposition promises to keep the construction cop.
***ICA's position: Keep the construction cop, the ABCC.

Self Managed Super Funds

We strongly support self-employed people having access to easy-to-run SMSFs. During 2009-10, the government held a review into all superannuation (the Cooper Review). We suspected that the review would recommend making life hard for SMSFs, but it has done the reverse and made sensible suggestions on SMSF operations. This is a big plus. Here's a good commentary.
  • We are not aware of either the Gillard Government's or the Abbott Opposition's formal positions on SMSF and the Review's recommendations.
***ICA's position. Implement the Cooper Review recommendations on SMSFs.

Small Business Minister in Cabinet

ICA is a member of COSBOA which is a peak small business association. For years COSBOA has been calling for the Small Business Minister to be in Cabinet, thereby giving small business issues real institutional 'grunt' inside government.

• The Gillard Government has no policy for the Small Business Minister to be in Cabinet.

• The Abbott Opposition promises to have the Small Business Minister in Cabinet.

*** ICA's position: We want the Small Business Minister in Cabinet.

National Broadband Network

COSBOA has been vocal in supporting the Gillard Government's NBN plan.

*** ICA's position. We have not adopted a formal view.

The choice seems to be between
  • Gillard's 'Rolls Royce' NBN at $43 billion and
  • Abbott's 'Toyota Camry' at $6 billion
Any decision appears to be based on what you think Australia can afford.

What the Labor Government has done 2007-10

Because the Gillard Government has not released a small business policy for this election (as of 17 August), it appears that it intends to stand on its record. (Note: Late evening, 17 August: the Government sent us this Ministerial Statement.)

It has done a number of things that we support: Each of these reforms is an important step along the micro-economic reform path that will assist self-employed people. However, we'd like to know what the Gillard ALP's small business intentions are for the future. (Note: Late evening, 17 August: the Government sent us a Ministerial Statement on small business, detailing its achievements and future plans. The Statement is available here.)

An assessment of the Abbott Opposition's proposals

The Abbott Opposition's small business policy is perhaps the most substantial and far-reaching small business policy we have seen.

In particular, the decision to introduce unfair contract protections for small business people is a major micro-economic reform initiative that has the potential to be a 'game changer' in the economy. If implemented, entrepreneurship amongst small business/self-employed people will have a real chance to flourish.

ICA's election campaigning: Marginal-seats letterbox drop

Our election campaigning on issues is primarily limited to what we say on this, our website. However, many of the issues we push have also been picked up by the mainstream media.

We joined with COSBOA and NIRA (National Independent Retailers Association) in a marginal-seat letterbox drop on small business/self-employed issues. Here's the brochure.

We have not tried to tell people how to vote, but have put policy facts to them as clearly as we could.

Advocacy, lobbying, politicians and all that stuff

Being a lobby organization involves rather strange and sometimes strained relationships with political parties. Every political party is a complex combination of differing and frequently opposing views. These forces and views, however, unite in an effort to win government. In relation to small business/self-employed issues:
  • In the ALP and Labor movement there are factions and groupings that are deeply antagonistic toward self-employed people. Self-employed people are seen in a perverse way to be 'traitors' to the working class cause. They will do anything to hinder self-employed people running their businesses---for example, by creating tax complexity. There are other groupings inside the ALP who see self-employed people for what we are and recognise our importance---new and different players in a changing workforce and economy.
  • In the Liberal Party there are groupings who think that small business/self-employed people should automatically support the Liberal Party. Others are aware that self-employed people are generally not wedded to any political side and that they must fight for the self-employed vote on every occasion.
It is in this general environment that Independent Contractors Australia must conduct its advocacy and lobbying.

There are some industry and representative organization who seem to think that to be successful lobbyists they need to stay 'inside the tent' of the incumbent or the likely government. These organizations frequently receive direct government funding and/or seek government subsidies and funding for their members. Often they feel that they should not criticise the government and only make comments in private.

ICA does not take this view. At ICA, we take the view that our task is to be focused on policy issues, to do detailed policy analysis and be prepared to take stands on policy positions and publish them accordingly. In our view, policy must be 'king'! This means that occasionally we are likely to upset people (and we have) because our policy stances do not fit with their positions.

(Note: ICA received federal government funding in 2009 to conduct self-employed business support programmes during the global financial crisis. This resulted in a wide range of business help videos and other resources being produced and promoted.)

For example, during 2006-07, we were heavily critical of the Howard Government because when it introduced the Independent Contractors Act (which we strongly supported and still support) it prevented owner-drivers in NSW and Victoria from having access to the protections under the Act. Further, ICA made a number of positive comments about the Rudd ALP's small business/self-employed policies. What followed was an immense strain on the relationship with the Howard Government that flowed over into the 2007 election campaign.

This is the reality of lobbying and advocacy as far as we are concerned. Politicians will naturally want everyone to support them and will not be happy with people who do not favour their positions. At this election there seem to be Labor MPs who are not happy with our comments.

But we see it this way. We analyse policy and make a stand. We look at a political party's policies to see if and where they match with our positions. We point out where there is a match and highlight the differences. If a politician becomes upset with that, well---that's life! Mostly we find our relationships with politicians are friendly and professional. There are some very good policy-focused MPs around and we enjoy dealing with them and discussing issues.

Our task is to try and win on the policy front for Australia's 2 million self-employed people through what we hope are sound arguments.