Independent Contractors Australia

Independent Contractors of Australia (ICA) was established in 1999, with the aim to create a national association to represent independent contractors in the Australian workplace.[1][2][3] Independent contractors operate in the workplace by contracting out their services rather than being engaged under an employment agreement. They are able to be distinguished from employees by some key differences. Independent contractors operate their business entity in order to provide a good or service for an agreed price usually stipulated in a commercial contract. Other differences are that in most cases independent contractors are paid for the results they achieve; provide the materials and equipment needed to complete the work they do and are free to delegate their work to others. Also, they are free to accept or refuse work and may make a profit or a loss from the contracts they enter into with their clients.[4] ICA is a not-for-profit association incorporated under the Associations Incorporation Act (1981) of Victoria.[5]

Independent Contractors Australia
AbbreviationICA
Formation2000
TypeNot-For-Profit
Legal statusAssociation
PurposeRepresentation of independent contractors in the Australian workplace
HeadquartersMelbourne, Victoria
Location
Websitehttp://www.independentcontractors.net.au

Governance

ICA is governed by a Board under the rules established by its Articles of Association.[6]

Articles of Association

The articles[6] under which ICA was established determine that the purpose of the association is:

  1. to uphold and defend the right of all eligible Australians to engage in the labour market as free and independent contractors, and to be recognised by governments, tax officials and regulators as independent contractors;
  2. to engage in lobbying and public debate to ensure that the Australian community is aware that if Australians' rights to engage freely in the labour market are impaired or denied, then the rights of all Australians to live in freedom will be at risk;
  3. to maintain the common law distinctions which the courts have made between employment and contract in labour market relationships;
  4. to take all such action as the association or the committee shall think conducive to the attainment of these objectives.

Board

The ICA constitution requires the election of ten Board members, with four who are independent contractors, up to at least three who are company members, and up to three who are association members. The elected Board can then appoint an additional two members.

Past presidents
  • The Hon Norman Lacy (November 2008 – Present)
  • Marie-Louise MacDonald (December 2007-November 2008)
  • Michael Kelson (April 2007-December 2007)
  • Angela MacRae (July 2005-April 2007)
  • Bob Day (2001-July 2005)

Executive Director

Ken Phillips has been Executive Director of ICA since 2000.[7][8][9]

Funding, membership, and location

ICA is funded by its membership fees and revenue raised from sponsorship, advertising and events. Membership is open to independent contractors; to companies who engage independent contractors; and to industry associations whose members engage independent contractors. Membership fees range from $50 per annum for individual affiliate members to $12,000 per annum for industry associations with more than 201 member companies.[6]

There are 1.1 million independent contractors in the Australian workforce of 11.3 million. However, Other Business Operators (OBOs) are also self-employed and make up another 1 million workers.

The Australian Bureau of Statistics (ABS) separates OBOs from independent contractors on the basis that they are self-employed workers whose primary activity is managing others (i.e. they have employees) and/or selling goods and services to earn income rather than relying on the provision of their labour. Whereas independent contractors are defined as workers who provide their time and labour and who only manage themselves. Hence the self-employed total 2.1 million and make up 18.6% of the total workforce.[10]

FORM OF EMPLOYMENT2008200920102008/2010
(000)(000)(000)(%)
Total Workforce10,651.110,664.911,300.05.74
Employees8,619.68,660.9

9,2000.0 !! 6.31

Independent Contractors967.11,029.0

1,100.0 !! 12.08

Other Business Operators1,064.4975.0

1,000.0 !! -6.44

Total Self Employed2,0331.52,004.02,100.03.26
Self Employed/Workforce (%)19.0718.7918.58

[11][12]

ICA is based in Melbourne, Victoria. Board meetings are held monthly at 150 Lonsdale Street, Melbourne,

Mission

ICA's mission is to:

  • present to Government and the public a clear and positive view of independent contractors;
  • provide an ideal legal and professional framework in which independent contractors can thrive and feel legally secure;
  • support members by creating an environment that allows them to grow within the economy;
  • provide members with access to relevant services, including education, literature and news updates.

Campaigns

ICA's lobbying campaigns have focused on:

2000-2001 the introduction of the Personal Services Income (Tax) legislation;[13][14][15]

2003–6 participation in the International Labour Organization (ILO) debates regarding the Scope of the Employment Relationship resulting in a 2006 ILO Recommendation protecting the legitimacy of independent contractors and the commercial contract.

2005–6 the introduction of the Independent Contractors' Act (2006).[16][17][18]

2007-2011 the establishment of Small Business Commissioners in each state and territory and in the Commonwealth Government.

2009-12 the development and promotion of Charter of Contractual Fairness[19] to governments and corporations and to have the Trade Practices Act amended to extend the protections for contractual fairness, available to consumers, to small businesses.

References
  1. Australian Broadcasting Commission The Drum
  2. "Australian Chambers Business Congress 1-3 June 2011". Archived from the original on 3 March 2013. Retrieved 17 October 2012.
  3. Fairwork Australia Fact Sheet
  4. "Independent Contractors The Essential Handbook Commonwealth of Australia (Department of Industry, Innovation, Science, Research and Tertiary Education)2011 pp 2-3" (PDF). Archived from the original (PDF) on 2013-03-28. Retrieved 2012-10-17.
  5. Directory of Government and Business Associations in Australia
  6. "ICA brochure" (PDF). Archived from the original (PDF) on 2017-02-18. Retrieved 2014-12-01.
  7. Business Spectator
  8. The NAB National Small Business Summit
  9. Online Opinion
  10. CFMEU, Race to the Bottom - Sham Contracting in Australia's Construction Industry. A report by CFMEU Construction & General, March 2011, p 11
  11. Australian Bureau of Statistics, Form of Employment Survey, Cat. 6359.0, published data, November 2008, (updated with 2010 figures).
  12. Independent Contractors: How Many?
  13. Income tax: the meaning of personal services income
  14. Australian Financial Review, Plea for Leniency on Contractors, "The Howard Government may be forced to accept a lower revenue yield from its planned crackdown on contractors, prompting industry to lobby senior ministers for a more sympathetic contractor test." 24 March 2000
  15. Australian Financial Review, ATO unreasonably rejects travel claims of IT contractors, 7 August 2012
  16. ABC transcript from The World Today, Government Introduces Independent Contractors Bill to Parliament, 22 June 2006
  17. Independent Contractors Act 2006
  18. O'Malley Nick, Workplace Reporter, New Law Threatens Pay Rights of Workers, Sydney Morning Herald, June 23, 2006
  19. Charter of Contractual Fairness
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