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.

Illegal Workers and Phoenix Companies

April 2010


We've received information from several different sources complaining about illegal workers and phoenix companies. These unrelated stories describe dubious operations in northern New South Wales and Queensland in the tourism and construction industries, involving specific overseas nationals. There's a fair bit of grassroots anger about what's happening.

Two (edited) stories read as follows:

    A: "This group of 124 Phoenix companies who owe $100 mil to the tax department and scores of hundreds of thousands to Subbies, 40 are being investigated by the ATO yet they are still letting them trade.

    A lot of the small companies are over Public servants not doing their jobs---ASIC or ATO---which lets these jokers stay in business.

    We are contemplating an aggressive move to force the hands of all three levels of government to act re: more like "Government of the people, by the people, for the people".

    As an ultimatum, in 12 months time if they have not acted or legislated against this rogue trader or other rogue traders we (20-50) are going to divert our GST payments to another regional infrastructure administrator to acquire land, build roads, hospitals, bolster law & order, dredge the waterways---ie fill in the service gaps left by Local, State and Federal Governments.

    It is a little heavy handed, but we are sick of being screwed by just about everyone---ie Unions, Big Business, all levels of Government, employees, customers and now government condoned rogue traders."


    B: "I am providing information to the Department of Fair Trading Qld, Queensland Transport, The Fair Work Ombudsman Qld and the OTSI (Office of Transport Safety Investigations NSW), in the fight to stop rogue overseas operators run inbound tour operators ruining the Tourist Industry within Australia.

    One Inbound Tour Operator is a company run by a Ms [name omitted], known as [name omitted] Tours. I did work for this person for four months, last year, but left after what I believed to be unscrupulous work ethics. I currently have a claim against her with the [authority named].

    Ms [name omitted] calls all her staff Independent Contractors, yet treats all her staff as employees. She has been using the ABNs to her advantage, as currently she has some 73 ABNs, with differing Company names and addresses [evidence supplied]. QANTAS only has 66 ABNs globally!!!

    There will always be people trying to rort the system, but people like this only cause damage to our country, its reputation and its workers.

    Ms [name omitted] lost her Accreditation in NSW in 2009 and is not allowed to have a business in her name ever again in that state. As well, she faces many fines according to the Office of Transport Safety Investigation.

    I am curious if she has ever paid any tax with such an assortment of ABN companies?

    I believe that this sort of operator should sound alarm bells to the authorities and her unethical business ethics only bring harm Australia and erode working conditions."
ICA comment: The ATO recently released a news alert about phoenix companies. (See below for contact details to make a report to the ATO).


ATO news release (extract):


Focus on phoenix operators (April 2010)
A phoenix activity occurs when a company places itself into voluntary liquidation with the intention of avoiding its creditors, including us. Like the mythical phoenix, operators and promoters of these schemes rise again and continue to operate their businesses through a new company structure.

Phoenix operators deliberately place their companies in an insolvent position and fraudulently avoid the tax they are liable to pay. We target directors of companies that have gone into liquidation leaving tax debts but have continued trading through another business entity.

Our increased focus on phoenix activities involves:
  • identifying and tracking phoenix operators through better use of systems and intelligence
  • contacting operators earlier about their behaviour
  • identifying tax agents with links to phoenix behaviour
  • developing strategies with other organisations, including ASIC and industry associations, to deter phoenix activity.
If you suspect someone of being a phoenix operator, let us know by: