• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Home
  • Join Self-Employed Australia
  • Protected Members
    • Tax Audit Support
    • Unfair Contract Help
  • About US
    • Who We Are
    • SEA Board
    • Annual Reports
    • No Spam Policy
    • Content Disclaimer
  • Contact Us
  • Log in/Log out
  • Update your details

Self Employed Australia

"Everyone needs an Advocate"

“Everyone needs an Advocate”

  • Current Advocacy
    • Reforming the ATO
    • Small Business Tax Tribunal
    • Fair Contracts
    • Fixing Disputes/Prompt Payment
    • The ‘Gig’ Economy
  • Past Advocacy
    • Submissions
    • Defending ABN Contractors
    • Work Safety
    • Independent Contractors Act
    • Owner-Drivers
    • International Labour Organisation
    • Independent Contractors: How Many?
  • SEA Submissions
    • Submissions
    • Independent Contractors: How Many?
  • Members-only Articles
    • About ICA
    • Contract Design and Templates
    • Independent Contractors Act
    • Practical Assistance
    • Taxation Matters
    • What is an Independent Contractor?
  • News Categories
  • NotAboveTheLaw

Independent Contractors Act 2006: the Basics

23 June 2006

  • Definition: The common law definition of an independent contractor is used. This applies to individuals, partnerships and directors of small corporations.
  • Constitutional application: Independent contractors secure rights under the Act if they have a contract with (a) a corporation (b) the Commonwealth or Territory (c) a non-corporation that is established or headquartered in a Territory.
  • Overrides State IR laws: State laws that pull independent contractors into their provisions are overridden by the Act and do not apply.

However:

  • Not Outworkers & Owner-drivers: State IR laws covering clothing outworkers and NSW and Vic owner-drivers have not been overridden.
  • Three-year Transition: It will take three years for State IR laws covering independent contractors to be overridden. This is to give time for businesses and others to adjust and alter their arrangements.

But

  • Opting ability: Independent contractors, with their clients, can jointly choose to opt into the Independent Contractors Act and exclude the State IR provisions from their individual arrangements, except for NSW and Victorian Owner-Drivers.
  • Only IR issues: The Act does not apply to laws such as taxation, equal opportunity, workers’ compensation, occupational health and safety and so on.
  • Unfair contracts: Unfair contract applications can be made to the Federal Magistrates Court.
    • ‘Harsh’ or ‘unfair’ have established common-law meaning. However, a contract paying less than the total remuneration of an employee can be considered ‘unfair’. Consideration of what is ‘less’ must take account of market realities—that is, what is being paid generally across industry sectors, etc.
    • The Federal arrangements override State unfair contracts provisions— for example, those in NSW and Queensland.
    • Large companies are not able to use the provisions.
    • Applicants have to cover their own costs unless a claim is ‘vexatious’.

Primary Sidebar

  • Facebook
  • LinkedIn
  • Twitter
  • YouTube


Protected Member $40/month
Standard Member $20/month
Campaign Member: You decide $
Compare Member Benefits
Please support our efforts.
We depend entirely on your $
Join Now!


Click here to $  support
Not Above The Law – Info

We explain the case for prosecutions

Sign up to our mailing list!

* indicates required




Reforming the ATO

ABC confronts ATO” (3′ 42″)
More info here

SEA Email Help

Contact us here (choose “Membership” from the options)

Authorised SEA Content

The use of Self-Employed Australia’s logo or its website materials requires our prior written consent. Self-Employed Australia does not issue printed material. All authorised content is published on our website or on our officially linked social media pages. Any material found outside these sources is unauthorised and constitutes a breach of copyright. If you wish to report any suspect material, please contact us.

SEA Advice Referral

Self-Employed Australia does not provide tax, financial, legal or other professional advice. We seek to understand members’ situations and make referrals to our partner, outsourced, self-employed specialist Lawyers, Accountants, Insurance Brokers and other professionals. More information here.

Footer

  • Facebook
  • LinkedIn
  • Twitter

Copyright © 2022 · News Pro on Genesis Framework · WordPress · Log in