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.
ICA Statement on 'Making it Work': The report of the Parliamentary Inquiry into independent contracting and labour hire arrangements

On Wednesday 17 August 2005, the Federal Parliamentary Inquiry into independent contracting and labour hire released its report. The report is over 200 pages long and contains 17 recommendations. Click here for the full report.

Summary:
The report itself is a summary of the wide range of views on independent contracting and labour hire put to the lower house parliamentary committee. It is written in such a way that, on any given topic, readers will find paragraphs with which they strongly agree and other paragraphs with which they strongly disagree.

It is split, however, into a majority report and a dissenting minority report, based on party political lines. The ALP committee members support the minority report.

The important items in the document are the 16 recommendations. All of the committee support nine of the recommendations. The minority report rejects seven recommendations and proposes some alternative recommendations.

The nine majority recommendations call for:
  • Statistical data collection on independent contracting and labour hire. (Recommendation 1)
  • Development of a best practice guide for labour hire. (Recommendation 5)
  • Improvements in work safety processes and practices related to independent contracting and labour hire. (Recommendations 6,7,8,9)
  • Creating of consistency in workers' compensations schemes. (Recommendation 10)
  • The creation of a voluntary code of practice for the labour hire industry. (Recommendation 11)
  • Development of a series of business education resources for independent contractors. (Recommendation 12)

The seven recommendations supported by the government members but not supported by the ALP committee members call for:
  • Maintaining a common-law approach for distinguishing independent contractors from employees. (Recommendation 2)
  • Adding a PSI component to common law for federal legislation. (Recommendation 3)
  • Creating national consistency with the States in identifying independent contractors. (Recommendation 4)
  • Broaden the description of independent contractor for the Workplace Relations Act to extend beyond a 'natural person'. (Recommendation 14)
  • Protections for independent contractors consistent with being a small business under commercial law, with access to small claims processes. (Recommendations 14,15)
  • Enabling the Federal Magistrates Court to provide dispute resolution for independent contractors. (Recommendation 16)

The minority report effectively rejects the common-law position as defining the difference between independent contractors and employees, and proposes an overriding statute definition which it details. [See alternative recommendation 2.]

Comment
It is refreshing to see cross-party political support for statistical data collection, work safety improvements, consistency in workers' compensation regimes and development of educational resources. Workers' compensation consistency is urgently needed. ICA had made considerable comment on work safety laws. (See our submissions to the Victorian OHS Review and the NSW OHS Review.) The creation of a voluntary code of practice is probably consistent with the operation of most labour hire businesses, who already comply with codes established in the industry.

The majority report's position seeking to secure common law as the defining difference between independent contractors and employees is strongly endorsed by Independent Contractors of Australia. This is, and must remain, the bedrock of independent contracting.

Incorporating aspects of PSI into the foreshadowed Independent Contractors Act has the potential to resolve many practical, operational issues in some industry sectors.

Ensuring that independent contractors are treated as small businesses and afforded all the protections available under commercial law---including effective and cheap contract dispute-resolution procedures---has long been a position at the core of ICA's lobbying efforts.

The effective rejection of common law in the minority report is perplexing. The suggested statute definition is an incoherent shambles that would create massive commercial confusion and effectively dump known and stable commercial legal systems and relationships. The suggested statute definition amounts to no more than a legal banning of independent contracting and labour hire, and replicates the attempts to outlaw independent contracting made by State governments over the last decade or more. In addition, it effectively rejects the latest International Labour Organisation acceptance of, and support for, the legitimacy of independent contracting. ICA strongly opposes the minority report.