CareerCafeIndependent contractors the essential handbook November 2010Independent contracts made simple November 2010In the authors lifetime at least two major wars have been fought over what was considered “the communist menace”. Right or wrong, win or lose, many thousands of Australian servicemen died for the right to “be free”. This includes the freedom to associate, religious freedom, and the freedom to be pretty much who you want to be. You can be a bricklayer, a lawyer, a banker, or you can be self-employed-currently pretty much anything including unemployed. In most cases you are protected by law from exploitation and inappropriate remuneration or what is called exploitation. If you want to trade freely as your own entity-say sub-contract, however, you come into the sights of the Australian Government, and in particular the Australian Tax Office, who are given the powers to strip you of your assets and dignity.
The Federal Government loathes subcontractors, and has treated subbies with complete disdain for as long as the author has been in the employment game-some twenty years. It is understood that there is a need for a part-time work force. It is understood that the lower socio-economic tier of labourers quite frequently require protection from exploitation-we get that. Clear, concise, precise and accessible laws are actually in place to protect Bob the Builder. The unions, bless their belligerent buttocks, are to a large part responsible for this When professional services comes into play they leave the Unions behind. Don’t need ‘em. Don’t like ‘em. Don’t want ‘em. Are we cool with that? Computer says no. The ICT industry has resisted Unionism for as long as it has existed, mostly due to the three “D’s”. Sensing a weakness in the force, the Feds have sought to penalise the ICT industry. Why? Is it because the average ICT worker earns more? Doesn’t wear blue? Seems to be too blithely happy? Just the vibe?
Grandad did it for Oz
For whatever reason there is not a clear cut, safe method of sub contracting. The thin ice that is current subcontract law shifts with the mood of the ATO. It’s deliberately thin, as evinced by the “Personal Services Income Test” for sole traders, which was cobbled together by someone very fond of cryptic crosswords and multisyllabic obfuscation.
To maintain subcontractors in the firing line they have no compulsion to superannuate like everyone else. There’s no easy way of paying tax. The state governments are generally cool with subcontracting, save for the idiotic state payroll tax grab. In this one case only they treat the subbies as employees.
Is it a coincidence that Australia is the only western democracy with no bill of rights?
Wake up Australia-we need a flexible workforce, and an easy way to do that legally. It’s good for our careers and our pockets. We learn so much more through flexibility and the clients don’t need us full time-once the implementation is over we skedaddle. Many of our clients can’t afford IBM and the big guns. Most subcontractors genuinely want to pay tax-they are not all stupid, so don’t treat the ICT professional world like they are nascent criminals. Get annoyed-I am!
Update here is a decision tool from the ATO. Ta.
