THE status of superannuation and independent contractors was last month injected into a long-running inquiry by the House of Representatives Standing Committee on Employment, Workplace Relations and Workforce Participation.
The committee announced in mid-June that taxation issues and superannuation obligations for independent contactors and labour hire workers would be among the topics raised at what was expected to be the final hearing of the committee.
Appearing before the committee was the Department of Employment and Workplace Relations, the Australian Taxation Office and Treasury.
A number of submissions to the Committee, including the NSW Government’s, raised concerns about the manner in which people moving into contracting arrangements could be denied access to workplace benefits such as workers’ compensation and superannuation.
The NSW Government’s submission accepted that many, though certainly not all, dependent contractors quite happily accepted their status believing they would be better off financially. However, it warned that these people may have failed to take account of the value of factors such as leave entitlements and superannuation contributions.
In similar fashion, the Australian Council of Trade Unions’ submission argued that contracting in the form of disguised employment should not be permitted to be used as a mechanism to avoid taxation, superannuation, occupational health and safety, workers compensation or employment obligations.
In contrast, the Australian Chamber of Commerce and Industry argued that laws regulating contractors, particularly laws which deem contractors to be employees, or which provide unfair contracts protection, are flawed, counterproductive and should be repealed.
