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Answering this question is a core reason for the existence of ICA. Confusion exists in the community on the legal, tax, statutory, industrial and managerial definitions and how they interrelate. In fact, the answers are straightforward.
Common law (You need to be a member to access this page.) The starting point is the common-law definition. All other issues radiate from the common-law understanding. Despite what some commentators say, the common-law definition is clear and comprehensive.
Tax: (You need to be a member to access this page.) Huge confusion once existed in Australia. With the introduction of PAYG (2000) and the Personal Services Legislation (2001), however, the tax status of independent contractors in Australia is clear and equitable. ICA has worked closely with the ATO to develop a layperson's explanation of PSI.
Statutory Obligations: Legislation covering workers' compensation, payroll tax, occupational health and safety matters, and equal opportunity and anti-discrimination issues can be confusing. Particularly confusing is the erroneous but common practice of "deeming" independent contractors to be employees.
Work Regulation: This should be clear-cut, but many people seek to confuse the issue in Australia. Independent contractors operate and are regulated within commercial regimes that are freed from industrial relations restrictions.
Dictionary (You need to be a member to access this page.) ICA dictionary will give you a starting point for understanding many of these terms and ideas.
Remember: The first and key issue is to understand the centrality of the common law.
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