Guide to Subcontracting Master Builders Australia Ltd & Master Builders Association of the Australian Capital Territory
2011 Building Australia
™
Table of Contents 1. 2.
Purpose ....................................................................................................... 1 Contracting and subcontracting ................................................................... 1 2.1 Contracts.................................................................................................. 1 2.2 Contract law ............................................................................................. 2 2.3 Validity of contracts .................................................................................. 2 Elements of a workable contract ..................................................................... 3 2.4 Subcontracting ......................................................................................... 4 3. Advantages and benefits of independent contracting ....................................... 5 4. Contractor or employee? ................................................................................. 7 4.1 Sham contracts ........................................................................................ 8 4.2 Penalties .................................................................................................. 9 4.3 Onus of proof ........................................................................................... 9 4.4 Further information ................................................................................... 9 5. Types of subcontracting............................................................................. 10 5.1 Independent contractors agreement ...................................................... 10 5.2 Period Trade Contract ............................................................................ 11 6. Statutory obligations applying to builders and subcontractors ....................... 12 6.1 General .................................................................................................. 12 6.2 Superannuation...................................................................................... 12 6.3 Taxation ................................................................................................. 13 6.4 Independent Contractors Act ................................................................. 14 6.5 Workers‘ compensation ......................................................................... 16 7. Other compliance issues: Keeping out of trouble ............................................. 23 8. Occupational Health and Safety (OH&S) ......................................................... 27 9. Further information ........................................................................................ 34
Guide to subcontracting 1. Purpose This guide is intended to assist companies and individuals who are engaged as subcontractors to work on specific aspects of a building project under subcontract arrangements. It will also be helpful to building and construction firms and small builders operating as a company that engage subcontractors for these purposes. This document provides general advice only. For more specific information you should refer to the detailed guides to the various types of contract also published by Master Builders Australia, or to other information issued by State and Commonwealth government authorities. If you are in doubt about aspects of your obligations or rights as a subcontractor you should seek advice from your local Master Builders office or from the appropriate professionals.
2. Contracting and subcontracting 2.1 Contracts A contract is a legally enforceable agreement between two or more parties (either persons or businesses). The usual situation is that one party (the contractor) agrees to provide specified services for the other party (the principal), and the principal agrees to provide payment. Simple contracts, such as when you arrange for somebody to mow the lawn or clean out the guttering, are usually verbal, but as the work becomes more complex, written contracts that clearly spell out the obligations of each party are needed. A typical simple contract might consist of the following terms: A will repair the leak in B‘s roof. A seeks $1000 for the job. B agrees to pay $1000. A contract consists of both express and implied terms. The express terms are those set out in the agreement (either verbal or in writing): in this example, the leak will be repaired and the contractor will be paid $1000 for the job. The implied terms of a contract are more vague, but might consist of the following conditions:
The work will be completed within a reasonable time.
The work will be done competently.
B will give A access to the roof. 1
Payment will be made when the work is completed.
Of course, any of these assumptions could be altered by specific agreement – for example, that the work would be done next Tuesday, or that payment would not be made until B was satisfied that the problem really had been fixed. Since it is usually disagreements about the implied terms of a contract that end up in expensive court cases, it is a good idea to make any contract as specific and comprehensive as possible.
2.2 Contract law Contracts are covered by a large and complex area of law known as the law of obligation or law of contract. Unlike most fields of activity, which are regulated by statute law (acts of parliament), contract law is governed by relatively few specific statutes and is largely based on previous court decisions. Importantly, however, the building and construction industry is an exception to this pattern: the industry is an area where both the States and the Commonwealth have passed a substantial amount of relevant legislation. When entering into a contract it is important that you are aware of any specific legislation relating to the transaction. To establish whether two parties have entered into a contract it is helpful to ask two questions:
Have A and B reached consensus on something?
If so, have they agreed on all the essential elements?
If the answer is No, there is probably no contract. If the answer is Yes, it is likely that a contract has been formed so long as the following are satisfied:
A and B intended to create a legal relationship between them.
A and B both had the legal capacity to do so.
The agreement was freely made (without pressure on either party).
The contract can be performed without breaking the law.
The terms of the contract are clear.
2.3 Validity of contracts Just because you have signed a document or shaken somebody‘s hand does not mean that you have a valid contract. To be legally enforceable the following elements must be present: 2
1.
Intention to create a legally binding relationship.
2.
Offer and acceptance.
3.
Valuable consideration. (There must be some form of payment or exchange for the services provided).
4.
The parties must have the legal capacity to consent. (For example, neither may be a minor, a mentally incompetent person, or somebody under a legal disability, such as a bankruptcy order.)
5.
There must be genuine consent. (Both parties must understand the terms of the contract, and neither may be under pressure (duress) or the influence of alcohol or other drugs.)
6.
The objects of the contract must be legal. (A contract to commit a crime would not be legally enforceable.)
7.
The terms of the contract must be certain.
If you are not sure whether you have entered into an agreement it is a good idea to seek professional advice.
Elements of a workable contract When drafting a contract, you should consider including the following information, either in the body of the contract or in a schedule:
results to be achieved and services to be performed;
insurance and professional indemnity responsibilities;
a clear dispute resolution process;
intellectual property rights;
termination of the contract;
timing and payment;
reporting arrangements;
confidentiality obligations; and
provision of tools and equipment necessary to undertake the work.
A well thought-out and clearly written contract allows the parties to identify the working relationship, rights and responsibilities, expected outcomes and payments due before starting work. It is important that you understand your rights, obligations and what is expected in the business relationship in order to avoid misunderstandings. 3
2.4 Subcontracting Subcontracting is the mainstay of the Australian building and construction industry. Without subcontractors, no homes would be built and office blocks would remain empty shells. A subcontract works in the same way as any other contract, but it is only one component of the numerous agreements that are usually needed for any large building project. A typical, simple situation is that a home owner signs a contract with a building company to build or renovate a house, and the building company in turn engages skilled tradespeople to carry out the particular jobs required: bricklaying, carpentry, electrical, plumbing etc. A subcontractor can be either an individual who does the work himself, or a company that either employs labour for the purpose, or in turn engages further contractors for the project. The first set of subcontractors may be termed first tier, the next set second tier and so forth. The legal and financial relationships established by these contracts are confined to the parties to each contract. The home owner‘s legal relationship is with the building company, not with the subcontractors that he engages. The building company‘s legal and financial relationships are with the subcontractors he engages, not with any workers they may employ or with any firms or individuals these subcontractors may engage as second tier subcontractors. (See diagram.) An important exception to this general rule, however, are matters relating to occupational health and safety (OH&S), where a principal has broad duties imposed by legislation: see separate section of this guide on OH&S. There may well be communication between the home owner and the subcontractors, but on legal, financial and contract management matters he/she will deal with the building company with which he/she has the contract. Distinguishing the Subcontract Relationship
The word subcontract derives from the Latin word sub, meaning under, commonly attached to English words to indicate a lower position in space (e.g. subterranean: underground) or in a hierarchical chain of command (e.g. sub-station: a minor electrical installation; subordinate: a person subject to the authority of another). In the building and construction context, however, the prefix sub does not mean that 4
the contract is less important. On the contrary: because subcontracts deal with the nitty gritty details of construction they are often the most important contracts of all.
3. Advantages and benefits of independent contracting Subcontracting has been an increasingly significant feature of the Australian construction industry since the late 1960s and is now a vital part of the construction process. In the building sector subcontractors perform over 90 per cent of all construction work. The rise of subcontracting was an intelligent adaptation to the more turbulent economic conditions that followed the stability of the 1950s, involving periodic slumps, rising inflation, high interest rates and increased industrial disputation. In addition, building projects became larger and more complex, requiring the services of highly specialised personnel, both technical and managerial. Subcontracting was welcomed by many tradespeople because it gave them the opportunity to become independent and establish their own business, and by large companies because it enabled them to rationalise their workforces. The importance of subcontractors within the Australian building and construction industry is related to the structure of the industry, which consists mainly of independent operators and small firms employing fewer than 20 staff. These characteristics give the industry great flexibility in responding to fluctuating economic conditions and allow it to shift resources as old projects wind down and concentrate them quickly as new projects come up. In a report issued in 2006, the Productivity Commission found that a quarter of the building and construction workforce were subcontractors and that the proportion was increasing. It is generally agreed that subcontracting raises the productivity and increases the efficiency of the building industry by encouraging both skill specialisation and flexibility in the allocation of resources. The subcontracting system offers great advantages to both subcontractors and builders, project managers and other principals who seek their services. The system allows small operators to prosper without needing a large capital, and gives large firms the flexibility to buy the expertise required for particular jobs without the need to employ a large permanent workforce that would face retrenchment at times when business was slow. It allows project managers to obtain the most suitable workers for particular jobs at a competitive price and subcontractors to select the projects that best suit their expertise and work interests. The value of the subcontracting system as a means of increasing work options has been recognised by the Productivity Commission, which stressed its importance in widening the range of non-traditional employment opportunities. It considers that such non-traditional work assists the operations of the labour market by making it easier for individuals to find work that suited their circumstances and preferences. In particular, it provides: 
a bridge between unemployment and permanent employment for those who prefer permanent employment to non-traditional work; and 5
a means by which individuals can continue working even when unable to undertake permanent employment for reasons related to personal choices about education, child rearing or partial retirement.
The following are some of the many advantages that the subcontracting system offers to industry participants:
Barriers to entry are low, and contractors can enter the industry with very little capital outlay.
The system provides opportunities for skilled tradespersons to significantly increase their earnings, since their income is related directly to their efficiency in the actual time they work.
The system is simple to administer, requires relatively little paperwork, and reduces the need for supervision, as the principal contractor is not faced with the administrative burdens that result from employing staff.
The system provides more incentive to solve problems quickly and effectively, since contractors (unlike employees) do not get paid for delays and down-time.
A contractor quotes a price for a job which reflects both the level of demand and the complexity and scale of the job, thus leading to increased efficiency and fairness.
The results-based contracts characteristic of subcontracting are generally more efficient than time-costed labour.
The building and construction work process is well suited to contractors because it requires a variety of tasks that require different skills at different times; the completion of these tasks to the required level of quality can be easily monitored.
Because of the fluctuations in demand in building and construction, there is much competition between firms and often uncertainty about demand. In this situation many firms prefer to engage contractors rather than to employ staff.
The current skills shortages in the industry mean that contractors are able to respond more quickly than employees to meet the needs of companies, projects and the industry at any particular time.
Regional variations in the prices paid to contractors encourage contractors to be mobile, thus improving balance between labour demand and supply within regional markets.
The subcontracting system results in fewer labour disputes. The housing sector, which predominately uses contractors, experiences many fewer stoppages or strikes than other sector of the industry. This is because 6
contractors are bound by the contracts they sign in respect of the work to be performed, and they thus have an incentive to get on with the job with as few interruptions as possible.
4. Contractor or employee? One of the most important issues that both principals and providers of services in the building and construction industry need to establish is whether they are setting up an employer-employee relationship or a principal-contractor relationship. The distinction is vital because the legal rights and obligations of those who engage subcontractors are significantly different from those applying to persons or firms that employ staff. To take one example, employers are required to provide benefits such as annual leave, personal leave, parental leave and long service leave to their employees, but principals are not required to provide these benefits to independent contractors. The law defines an independent contractor as a person who works under a commercial contract or a contract for services. The independent contractor can operate as an individual or through a partnership, company or trust. An employee is defined as a person who works under an employment contract or a contract of service. If one party can control the way the work is performed, where and when it is performed and by whom, the contract is probably an employment contract. The courts have established several tests to determine what it means to be in control and therefore whether the worker is an employee or a contractor. No single test can determine whether control exists, but courts have developed a process that weighs the answers to numerous tests to decide whether, on balance, control exists. If the answer to most of the questions in the list below is Yes, it is highly probable the person is an independent contractor and should be engaged as a subcontractor. If the answer to most of the questions is No, the person is very probably an employee and should be engaged as an employee.
QUESTION
YES/NO
1
The person is being employed to achieve an end result. When the job is done he/she will leave.
2
The person is paid for doing the job rather than by the hour.
3
The person can decide how to perform the work so long as the job gets done.
4
There is no obligation to accept work and the person can reject work if he/she wishes.
5
The person can determine when he/she does the work so long as the job gets done.
6
The person is responsible for any mistakes made and must fix them at his/her
7
own expense. 7
The person can delegate some or all of the work to another person so long as the job gets done.
8
The person can employ others to perform the work or some of the work.
9
The person provides his/her own tools and machinery and is responsible for their upkeep, fuel etc.
10
The person is paid on the basis of invoices not wages.
11
The hirer does not pay holiday pay, sick pay or other entitlements.
12
The person pays his/her own tax.
13
The person has an ABN.
14
The person pays his/her own accident and public liability insurance.
15
The person works for other people as well.
16
The person says he/she are an independent contractor and advertises this fact.
4.1 Sham contracts The Commonwealth Fair Work Act 2009 makes sham contracting arrangements unlawful. A sham contract arrangement arises where an employer deliberately treats an employee as an independent contractor or coerces employees into signing contracts that represent them as being contractors rather than employees. An employer may try to do this in order to avoid meeting the normal obligations towards employees, such as leave, sickness benefits or superannuation entitlements. Employers who are convicted of creating sham contract situations may be subject to substantial penalties. The following are offences under the Fair Work Act: 
misrepresentation of genuine employment: A person misrepresents an employment relationship, or a proposed employment arrangement, to be an independent contracting arrangement.

re-engagement: An employer dismisses, or threatens to dismiss, an employee in order to engage that employee as an independent contractor to perform substantially the same work.

false and misleading statements: An individual knowingly makes a false statement with the intention of persuading or influencing a worker to become an independent contractor to do the same or substantially the same work. 8
4.2 Penalties If an employer is found guilty of any of these offences, the court may:
grant a injunction to stop an employee from being dismissed;
order the reinstatement of a dismissed person;
order compensation; and/or
impose a fine.
The maximum penalties are $6,600 for an individual and $33,000 for a body corporate for each offence. This may not seem all that much, but it soon adds up. For example, if an employer of 10 workers misrepresented all the relationships as independent contracting arrangements, the business could be liable for a maximum penalty of $330,000 (that is, ten times $33,000).
4.3 Onus of proof What makes a charge of sham contracting particularly serious for employers is that the law imposes the burden on them to prove that they did not create a sham arrangement. The situation is similar to one in which an accused person is considered guilty until proved innocent.
4.4 Further information If you are uncertain whether the relationship you are establishing is a principal-contractor relationship or a employer-employee relationship, the following sources of advice may be helpful. Independent Contractors: The Essential Handbook guide issued by Commonwealth Government available at www.business.gov.au Independent Contractors Hotline: 1300 667 850. Fair Work Online website: www.fairwork.gov.au
Employee or contractor online decision-making tool: www.business.gov.au/contractors
Tax Office employee/contractor decision-making tool: www.ato.gov.au or 13 28 66
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5. Types of subcontracting There are many different types of subcontracting arrangements. This guide covers two of the most common varieties: 
independent contractors agreement;

period trade contract.
5.1 Independent contractors agreement The Independent Contractors Agreement is recommended for use in one-off jobs, that is, in situations where builders require the services of subcontractors to perform specific tasks related to building works not covered by other contracts. A common instance might be when a builder wishes to engage a subcontractor on a one-off basis for a specific task (such as tiling, carpentry or painting) on a residential or commercial project. Master Builders model contract IC-2007, Independent Contractors Agreement, has been designed for use in these situations. This establishes the legal rights and obligations of each party, along with their powers and duties. This document will also assist compliance with the Independent Contractors Act 2006 (discussed below in section 6). The User Guide that accompanies the model contract provides detailed information that will assist builders to be clear that they are engaging an independent contractor rather than an employee. It also provides details about possible workers compensation and superannuation liabilities, and a clause by clause explanation of the contract. The contract comes in two parts. The first is the contract proper, which has a standard wording that applies to all jobs and covers basic issues, such as provision of tools and materials, site safety, insurance, quality control, dispute resolution procedures and other matters that will be uniform in all situations. The second part, called the schedule, sets out the full details of the work to be performed in this particular case, start and finish dates, payment arrangements, and has space for any other specific conditions. The idea behind the two-part contract is to simplify the contract procedure by separating the common elements of a contract that will be the same for all agreements from the specific requirements of a particular job, which will be different each time.
10
5.2 Period Trade Contract The Period Trade Contract is designed for situations where builders require the ongoing but intermittent services of subcontractors to perform specific tasks related to building works not covered by other contracts. The Period Trade Contract permits the engagement of subcontractors on known terms and conditions, but in this case the subcontractor is engaged for a defined period and particular jobs are agreed on as the need arises. In these situations it may be appropriate to use Master Builders model contract PTC2009. This contract establishes the legal rights and obligations of each party, along with their powers and duties, on the basis of a quotation provided by the subcontractor and accepted by the contractor through a work order. That agreement for the specific work is governed by the terms and conditions of Schedule 2 of PTC-2009. The User Guide that accompanies the contract explains the administrative procedures to give effect to these arrangements and provides information that will assist builders to be clear that they are engaging an independent contractor rather than an employee, and provides a clause by clause explanation of the contract provisions and those of the associated schedules. Use of this contract will also assist builders to comply with the Independent Contractors Act. PTC-2009 works on the same principle as IC-2007, but it is slightly more detailed in that it requires a contract plus two schedules, followed by a quotation from the subcontractor and a work order from the builder. The first schedule includes basic information such as the subcontractor‘s business details, a broad description of the work to be done, and the period over which the subcontractor‘s services are retained. The second schedule covers the administrative and financial details that apply when agreement about a specific job is reached. The advantage of this system is that it does away with the requirement for a separate fresh contract each time a job is needed. Once the basic contract and schedules are signed engagement, the builder contacts the subcontractor each time a job needs to be done, the subcontractor supplies a quotation for the job, and the principal issues a work order that accepts the quotation. This kind of arrangement means it is a bit more work getting the initial contract written and finalised, but much less effort when it comes to arranging the various jobs that come up.
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6. Statutory obligations subcontractors
applying
to
builders
and
6.1 General There are several obligations under both Commonwealth and State/Territory law that may apply to a contract between a builder and a subcontractor. These laws establish their own tests as to whether a worker is an employee or a subcontractor, and they are different from the test described above in section 4. In some cases their effect may be to define contractors as employees and impose obligations on the builder as though they were employees. Before engaging a person to work as a subcontractor it is therefore a good idea to consider the following areas:
superannuation guarantee legislation;
tax legislation:
the Independent Contractors Act, 2006;
workers‘ compensation legislation.
6.2 Superannuation The Commonwealth superannuation guarantee legislation provides that a contractor will be defined as an employee for superannuation purposes if:
the person is paid wholly or principally for their labour and skills; and
the person is required by the contract to perform the work personally and cannot delegate the task; and
the person is not paid to produce a result.
If these conditions apply to a subcontractor, the builder must pay superannuation at the rate of 9 per cent of the person‘s base earnings (the labour component of the contract) to a complying superannuation fund at least every quarter. Base earnings are the proportion of the agreed contract price made up of labour. If the contract is with a company, a trust or partnership, it is not regarded as a contract for a person‘s labour or skills and the superannuation guarantee legislation does not apply.
12
The penalties for a breach of superannuation requirements are severe; professional advice should be obtained whenever there are doubts as to the application of these rules.
6.3 Taxation The personal services income legislation sets out a series of tests to determine whether the tax office treats a contractor as a business for tax purposes. Personal services income is income which is mainly a reward for a person‘s effort or skill. Personal services income does not include income that is mainly:
for the supply of goods;
generated by an income producing asset (e.g. a bulldozer);
for the granting of a right to use property (e.g. the right to a computer programme); or
generated by a business structure (e.g. an accountant working for a large accounting firm).
The following conditions must be met to satisfy the Australian Tax Office that the builder or subcontractor is a business for tax purposes:
the person receives personal services income.
the person meets the ―results test‖.
To satisfy the ―results test‖ all of the following conditions must apply to 75 per cent of the person‘s personal services income:
the person is an independent contractor at common law (that is, as defined by the test in Section 4 above).
the person is paid to achieve a specified result or outcome.
the person has to provide their own tools or equipment (if necessary) to do the work.
the person is liable for rectifying defects.
If the person does not meet the ―results test‖ and more than 80 per cent of his/her personal services income comes from one client, in order to remain classified as a business the person must apply to the Australian Taxation Office for a ―personal services business determination‖. Such a determination 13
may be appropriate where the applicant does not formally satisfy any of the other tests or where it wishes its status to be conclusively determined. If the person does not meet the ―results test‖ but less than 80 percent of his personal services income comes from one client, in order to remain or be classified as a business at least one of the following conditions must also be met: 1.
The personal services income comes from two or more clients who are not associated with each other or the person.
2.
The personal services income is a direct result of making offers to the public
3.
The person has employees or engages subcontractors who perform at least 20 per cent of the principal work.
4.
The person meets the ―business premises test‖.
The ―business premises test‖ will be met if every day when the personal services income is earned the person has the right to occupy and use business premises that are:
owned or leased by the person;
mainly used to conduct the work from which the personal services income is derived (more than 50 per cent of the use);
used exclusively by the person;
physically separate from the person‘s residence; and
physically separate from the person‘s clients.
Taxation issues are always complex. If you are in doubt as to your status for tax purposes you should consult an appropriate professional.
6.4 Independent Contractors Act The Independent Contractors Act 2006 came into effect on 1 March 2007. This is a Commonwealth Act that applies nationwide and provides a statutory definition of ―independent contractor‖ consistent with the common law test (see section 4 above), overrides any State/Territory workplace relations laws that define contractors as employees and sets up a Commonwealth unfair contracts jurisdiction.
Coverage of the Independent Contractors Act The Act applies to all independent contractors if at least one party to the contract runs his business and trades through a corporation. 14
The independent contractors legislation also applies if:
at least one party is a resident in a Territory;
at least one party is a company that is registered in a Territory;
the work to be performed is in a Territory;
the contract is entered into in a Territory; or
a party to the contract is a Commonwealth authority.
The legislation does not apply to contracts that are solely for the supply of goods. The contract must be at least partly for the performance of work.
State and Territory definitions of contractor are overridden The main effect of the legislation is to nullify State and Territory legislation that defines independent contractors as employees for ―workplace relations purposes‖. ―Workplace relations purposes‖ is defined to include the following:
remuneration, allowance or other amounts payable to employees;
leave entitlements of employees;
hours of work of employees;
enforcing or terminating contracts of employment;
making, enforcing or terminating agreements determining terms and conditions of employment;
disputes between employees or employers or the resolution of such disputes;
industrial action.
State or Territory laws that deal with these issues are no longer applicable if the subcontractor meets the definition of an independent contractor for the purposes of the Independent Contractors Act.
Exceptions The Independent Contractors Act does not affect State and Territory laws relating to:
workers compensation; 15
occupational health and safety;
anti-discrimination and equal opportunity.
Unfair contracts The Independent Contractors Act invalidates State and Territory unfair contract laws and establishes a process by which contracts can be reviewed in the Federal Magistrates Court and varied or set aside if found to be unfair. Any individual can take advantage of the unfair contract provisions in the Act unless they are performing private or domestic work. Corporations that are independent contractors are entitled to have their contracts (excluding contracts for private or domestic services) reviewed only where the work is wholly or mainly performed by the corporation‘s director or members of the director‘s family. These unfair contract provisions are different from the comprehensive unfair contracts legislation relating to consumers that came into effect on 1 July 2010. This legislation is not discussed in this document. For information about it, see the guide published by the Australian Competition and Consumer Commission: http://www.accc.gov.au/content/index.phtml/itemId/930750
6.5 Workers’ compensation Although subcontractors are not employees, they can be regarded as ―workers‖ under workers‘ compensation legislation. Workers‘ compensation is the responsibility of State and Territory governments, and the rules differ widely from place to place. Whether a builder has responsibility for payment of workers‘ compensation to a subcontractor depends upon the definition of ―worker‖ in the workers‘ compensation legislation of the State or Territory where the work is being done. The legislation may define persons as ―workers‖, and therefore as employees, despite the fact that by other tests and for all other purposes they are independent contractors. If a building firm wishes to engage subcontractors who are defined as workers under the workers‘ compensation legislation in the relevant State or Territory legislation it will have to make workers‘ compensation payments. The definition of ―worker‖ is different in every State and Territory. The following section gives details of workers‘ compensation arrangements in each State and Territory as they apply to contractors in the building and construction industry. In many instances contractors or subcontractors are ―deemed‖ to be employees. ―Deemed‖ is a word commonly used in legislation, meaning much the same as ―defined‖, ―classified‖ or ―treated as‖. If a person is ―deemed‖ to be an 16
employee it means that the law treats the person as an employee even if by other tests or laws he/she would be a contractor.
WARNING These laws may change. The following information is correct at the time of printing. It is recommended that builders and subcontractors check with their State or Territory workers compensation authority that there have been no changes to this legislation before entering into any contracts.
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New South Wales Section 5 of the Workplace Injury, Management and Workers Compensation Act 1998 deems certain classes of workers as defined in Schedule 1 of that Act to be workers for the purposes of workers compensation regardless of their status by other tests. Schedule 1 deems contractors to be workers if all three of the following apply: 1. The contract is for work exceeding $10 in value. 2. The person does not carry out a trade or business in their own name or under a business or firm name. 3. The person does not subcontract the work or employ other workers. Queensland Schedule 2 of the Workers’ Compensation and Rehabilitation Act 2003 defines particular circumstances in which a contractor will be regarded as a worker. Contractors engaged under a contract mainly for the supply of labour will be deemed to be workers unless they meet all three of the following criteria: 1. The contractor is paid to achieve a specified result or outcome; and 2. The contractor provides all of the plant, tools and equipment needed for the job; and 3. The contractor is liable under the contract to rectify defects. This is called the ―results test‖. If the contractor has a personal services determination under the Income Tax Assessment Act 1997 (discussed earlier in this guide) he/she will not be regarded as a worker even if he/she does not pass the results test. If a contractor does not fall within the definition in the paragraph above the contractor will still be deemed to be a worker if any one of the following conditions applies: 1. The contractor makes a contract for performance of work that is not incidental to a trade or business carried on by the contractor individually or by a partnership. 2. The contractor does not subcontract the work. 3. The contractor does not employ a worker. 4. The contractor employs a worker but performs some of the work personally. The following are specifically excluded from the definition of worker:
a person who performs work as an employee of a corporation (company) if the person is a director of that company;
a person who performs work as an employee of a trust if the person is a trustee for that trust; 18
a person who performs work as an employee of a partnership if the person is a partner in that partnership.
Victoria The Accident Compensation Act 1985 provides two broad tests for deciding whether contractors will be deemed to be workers. (1) By the first test, the contractor is deemed to be a worker for workers compensation purposes if the contractor is a natural person (not a company) and that person:
contracts to perform work that is not part of a trade or business regularly carried on under the person‘s name or a business name;
and
either performs all of the work; or
subcontracts or employs workers for some of the work and performs the rest of the work personally.
If the contractor is a partnership the contractor is deemed to have performed the work personally if one or members of the partnership actually perform part of the work personally. (2) By the second test, the principal is deemed to be an employer for workers compensation purposes if the contract is formed in the course of a business carried on by the contractor and one of the following applies:
The contract is for supply of services for or in relation to the performance of work.
The contract is for supply of persons for or in relation to the performance of work.
The contract involves the giving out of goods to persons (not companies) who perform work and then re-supply the goods to the first person.
The contractor will not be regarded as a worker for workers compensation purposes if one of the following conditions apply: 1. where labour is ancillary to the supply of materials and/or equipment; 2. where the contracted services are not ordinarily required by the contract principal, and the contractor ordinarily provides those services to the public generally; 3. where the contract is for services ordinarily required by the contract principal for less than 180 days in a financial year; 19
4. where the contract is for a period or several periods not exceeding 90 days in a financial year; 5. if a worker is injured and has not at that time worked 90 days; (a) 6. where paragraphs 2, 3 and 4 do not apply and the contract is for services ordinarily provided by the contractor to the public generally in that financial year; 7. where the contractor employs or engages others to perform the work or part of the work; 8. where the contract is for door-to-door sales. (a) But the exemption will not apply if the workers compensation authority considers that if that person had not been injured he/she would have worked more than 90 days. NOTE: principals are considered to be the employer of injured employees of a non-insured contractor or subcontractor. South Australia The Workers Rehabilitation and Compensation Act 1986 extends the definition of ―employer of workers‖ to certain ―prescribed classes of work‖. Building work is included as a prescribed class of work, and the definition of building work is the same as in the Building Work Contractors Act 1995: 1. the whole or part of the work of constructing, erecting, underpinning, altering, repairing, improving, adding to or demolishing a building; or 2. the whole or part of the work of excavating or filling a site for work referred to in paragraph 1; or 3. work of a prescribed class. Wall and floor tiling are excluded. A contractor is deemed to be a worker and workers compensation levies must be paid if all of the following criteria are met: 1. The type of work done by the contractor must be carried out for the trade or business of the other party. 2. The work must be performed personally by the contractor, whether or not their own tools, plant or equipment are used. 3. The contractor must not employ others to carry out part or all of the work. 4. The value of the materials supplied is les than $50 or 4 per cent of the contract price (whichever is greater). 5. The contractor does not own or lease any item of equipment or any tool which exceeds the yearly indexed ―prescribed amount‖, excluding vehicles used to transport the contractor to the site. The ―prescribed amount‖ is calculated as follows: 20
In 1999 the amount was $12,000. In subsequent years, the sum will be $12,000 plus the percentage movement in the Consumer Price Index from the September quarter 1998, calculated to the nearest multiple of $100. In 2009 the amount was $16,600. Tasmania The Workers Rehabilitation and Compensation Act 1988 deems contractors to be employees for the purpose of workers compensation if they: 1. contract to perform work in excess of $100.00 (one hundred dollars); and 2. do not carry on a trade or business in their own name or a business name; and 3. do not subcontract the work or employ workers to do the work. If contractors takes out their own personal accident insurance they are not deemed to be employees. Contractors are legally obliged to advise the principal as to whether they have personal accident insurance. Western Australia The Workers Compensation and Rehabilitation Act 1981 contains an expanded definition of worker that may apply to contractors in the building industry. By this definition contractors may be employees for workers compensation purposes if  
the contractor is engaged by the principal to work for the purpose or efficient conduct of the principal‘s trade or business; and payment is in substance for personal manual labour or services.
Both the principal and the contractor are considered to be the employer of any workers the contractor may employ, and an injured worker may claim against either or both. Northern Territory The Work Health Act defines all contractors who perform work or services for another as workers for the purpose of workers compensation unless they have provided written notification of an Australian Business Number (ABN) to the contract principal and the parties have not agreed that the ABN does not apply to the work of the contractor. Australian Capital Territory The Workers Compensation Act 1951 defines contractors as workers for the purposes of workers compensation if they are engaged on a regular and systematic basis or engaged with the expectation of work on a regular and systematic basis. The following factors are relevant in determining whether a contractor has been engaged or expects to be engaged on a regular and systematic basis: 21
the terms of all relevant contracts;
the working relationship between the contractor and the principal and all associated circumstances
the period or periods of the engagement;
the frequency of work;
the number of hours worked;
the type of work;
the normal arrangements for someone engaged to perform that type of work.
The Act provides guidance notes and specifically states that a bricklayer engaged under contracts by a particular builder for some years and who has worked for almost nobody else over that period would be defined as a worker even if there were no express or implied guarantee of continuing work. Further information is available from workers compensation authorities in each state and territory.
Workers’ compensation agency contact details
State
Name
Phone
Website
Cwlth
Safe Work Australia
02 6121 5317
www.safeworkaustralia.gov.au
ACT
WorkSafe ACT
02 6205 0200
www.ors.act.gov.au www.worksafety.act.gov.au
NSW
WorkCover NSW
13 10 50
www.workcover.nsw.gov.au
NT
NT WorkSafe
1800 019 115
www.worksafe.nt.gov.au
Qld
Fair and Safe Work Qld
1300 369 915
www.justice.qld.gov.au/fairandsafe-work
SA
Work Cover SA
13 18 55
www.workcover.com
SafeWork SA
1300 365 255
www.safework.sa.gov.au
Tas
Workplace Standards
1300 366 322
www.wst.tas.gov.au
Vic
Worksafe Victoria
1800 136 089
www.worksafe.vic.gov.au
WA
WorkSafe WA
1300 307 877
www.worksafe.wa.gov.au
WorkCover WA
1300 794 744
www.workcover.wa.gov.au
22
7. Other compliance issues: Keeping out of trouble Insurance Unlike employees, subcontractors are generally responsible for their own insurance cover and bear the commercial risk for losses suffered from any work performed. Subcontractors need to know whether they are covered by the workers‘ compensation and liability insurance of the business that has engaged their services. Subcontractors should obtain professional advice on the types of insurance cover they need. However, the following should be considered:
Types of insurance cover Subcontractors not covered by the builder‘s workers compensation policy should consider personal accident and illness insurance to meet situations where accident or illness prevents them from working. Liability insurance protects against the financial risk of being found liable to a third party for death or injury, loss or damage of property or monetary loss resulting from negligence, advice or provision of unsafe products or services. Asset and revenue insurance provides protection in the event of theft, natural disaster, machinery breakdown and other forms of damage. If a subcontractor works from home, it may be necessary to have specific insurance to protect the business. Normal home and contents insurance policies do not necessarily cover home-based businesses, including tools of trade, office furniture or computer equipment used for business purposes.
Intellectual property (IP) New working techniques you develop or original pieces of work you produce as subcontractor may be examples of IP if it is the result of the application of your mind or intellect to the creation of something new or original. IP can exist in many different forms, including trademarks, designs, building plans and circuit layouts. The legal protection of IP rights, usually in the form of patents or copyright, provides designers, artists, business people, entrepreneurs and inventors with the exclusive right to profit from their intellectual and creative work. Ownership of IP for builder and subcontractor relationships is treated differently to employer/employee relationships:
IP created by an employee is the property of their employer.
IP created by a subcontractor for a builder is by law considered the property of the subcontractor, unless otherwise stated in the contract. 23
It is not a situation that often comes up in building and construction work, but if you think you may be inventing or producing anything that could be considered IP and thus have ongoing value, you should consider including a clause clarifying the ownership of IP in the contract. Further information IP Australia: Phone 1300 651 010; website: www.ipaustralia.gov.au
Long Service Leave Subcontractors in the industry may be liable to pay a levy or other contribution to a long service leave scheme. Portability of long service leave is the most significant feature of the long service scheme operating in each State and Territory. Entitlement to long service leave is determined by reference to the time that an employee has worked in the industry, rather than time worked with a particular employer. Portability enables employees to receive a payment after they have worked a requisite number of years in the industry, regardless of the number of different employers or whether the employment was continuous. Employers contribute to a fund and the administrator of the fund, rather than the employer, then accepts responsibility for an employee‘s long service entitlements when they become due. Arrangements are in place for the schemes to recognise eligible work that has been recorded in the various schemes to be added together for payment of a long service leave benefit. Subcontractors should contact the relevant fund in each State and Territory for details of the requirements to register and pay into the fund. The authorities area as follows: STATE ACT NSW
NT QLD SA TAS VIC WA
NAME ACT Long Service Leave Authority Building and Construction Industry Long Service Payments Corporation NT Build Portable Long Service Leave QLeave CBS Long Service Leave Board TasBuild Portable Long Service Scheme CoInvest Long Service Leave Payments Board
PHONE
WEBSITE
02 62473900
www.actlslb.act.gov.au
131441
www.lspc.nsw.gov.au
1300795855
www.ntbuild.com.au
07 32126811 08 83334314
www.bciplsla.qld.gov.au www.cbserv.com.au
03 62337670
www.tasbuild.com.au
03 96647677 08 94765400
www.coinvest.com.au www.lslboard.com.au
24
Other taxation issues Tax file number (TFN) A TFN is a unique number issued by the Tax Office to individuals and organisations that is used to administer tax. If you are operating as a sole trader you must use your individual TFN. If you are part of a partnership, trust or a registered company you will need to apply for a separate TFN.
Australian Business Number (ABN) An ABN is a unique identifying number that businesses or subcontractors operating as a business must use when dealing with other businesses. Your ABN should be printed on all invoices or other documents relating to the work you provide. Obtaining an ABN is advisable before undertaking work as a subcontractor. If you do not have an ABN, the businesses for which you do jobs may deduct tax at the rate of 46.5 per cent from the payments they make to you. Applications for an ABN may be made online at the Australian Business Register: www.abr.gov.au phone 1300 720 092
Goods and services tax The Goods and Services Tax (GST) is a consumption tax charged at the rate of 10 per cent on the value of the taxable supply of most goods, services and other items sold or consumed in Australia. It is recommended that GST be included in the price of quotations for jobs and shown separately. GST does not apply to services provided by an employee to his/her employer (wages or salary), but it does apply to services provided by a subcontractor to a builder.
Registering for GST Subcontractors must register for GST if you have a GST turnover of $75 000. In order to register for GST, you must have an ABN. This will also be your GST registration number. Once you have registered for GST you must add GST to the goods or services you supply to the builder under your contract. You can also claim input tax credits for any GST paid on items you buy or use in performing the work. If you are not registered for GST, you cannot include GST in the price of the goods or services you supply, and you will not be entitled to claim input tax credits for GST paid on items you buy or use in the course of your contract. 25
Paying GST You are required to pay the GST that you collect to the Tax Office. Because you are still liable to pay GST if you fail to include it in the quotation, it is important to include GST in the price quoted for your services. Failure to do so can be quite costly, as the tax will then be taken from your profits.
Business Activity Statements A Business Activity Statement is used to report your business tax entitlements and obligations, including GST. The Tax Office has developed resources, including sample statements and a reminder function, to help you understand the reporting requirements. Further information Tax Office website: www.ato.gov.au, phone 13 28 66 Business Activity Statements: phone 1300 720 092 to request a copy of the business account form to register for GST. GST information: www.business.gov.au Register for an ABN and GST online at www.abr.gov.au
Payroll Tax Subcontractors may be liable for payroll tax. This is a tax levied by State and Territory Governments. Generally, the tax is calculated on wages paid or payable by an employer to an employee. Wages are often calculated inclusive of allowances. There are some situations where relationships are, however, not employer/employee relationships and payments to subcontractors could be deemed to be (―as if they were‖) made to employees. Therefore, subcontractors could be liable for payroll tax as an employer based on the quantum of wages paid to their employees, or where the principal must include payments to subcontractors in the amount calculated as wages for the purposes of the particular deeming provision of State or Territory legislation. Because of the complexity of this subject, detailed discussion is not provided in this guide. If you pay wages above $550,000 per annum (the lowest threshold amount before the tax kicks in, which applies in Victoria) you should seek professional advice. Payroll tax authorities in each State and Territory: ACT
ACT Revenue Office
NSW
NSW Office Revenue
of
02 62070079 State 1300139185 26
www.revenue.act.gov.au www.osr.nsw.gov.au
NT
Territory Revenue Office
1300305353
www.nt.gov.au/ntt/revenue
QLD
Office of State Revenue
1300300734
www.osr.qld.gov.au
Revenue SA
08 82049880
www.revenuesa.sa.gov.au
TAS
State Revenue Office
03 62332813
www.sro.tas.gov.au
VIC
State Revenue Office
132161
www.sro.vic.gov.au
WA
Office of State Revenue
08 92260842
www.dtf.wa.gov.au
SA
8. Occupational Health and Safety (OH&S) OH&S is the responsibility of State and Territory governments, and the rules differ widely. In most States and Territories there are specific OH&S requirements for the construction industry, in addition to the requirements that apply more broadly. OH&S is a complex area of law. This guide provides very high level information and you should seek advice about the obligations that apply in your particular circumstances. What are the main OH&S requirements? Health and safety requirements imposed by State and Territory OH&S legislation on subcontractors include:
general duties to provide a safe working environment;
specific duties for businesses involved in upstream activities (for example subcontractors who might be the designers, manufacturers and suppliers of plant and substances);
consulting with employees and their health and safety representatives;
controlling the risks from hazards such as manual handling, noise, falls, confined spaces, plant, hazardous substances, asbestos and lead;
licensing and registrations, and
notification of serious injuries and incidents.
Duties of care are imposed on duty holders because they influence one or more aspects of how work is performed. This applies to subcontractors as it does to all participants in the construction task. They can therefore affect the health or safety of themselves or others. Duties of care require duty holders to ensure that, in their role and by their conduct, they do not adversely affect health or safety. The general duty of care in each State and Territory is outlined below. Other than in Queensland and NSW, duty holders need to meet the duty of care ‗so far as is reasonably practicable‘. This is essentially a limit on the duty of care. What is considered to be reasonably practical will depend on the circumstances, taking into account the following: 27
the likelihood of a hazard or risk eventuating;
the degree of harm that would result;
the state of knowledge about the hazard or risk and any ways of eliminating or reducing the hazard or risk;
the availability and suitability of ways to eliminate or reduce the hazard or risk; and
the cost of eliminating or reducing the hazard or risk.
General duty to provide a safe working environment New South Wales If you have employees that are employed under a contract of employment or apprenticeship, you have a duty under section 8 of the Occupational Health and Safety Act 2000 to ensure the health, safety and welfare at work of those employees. The duty includes:
ensuring that any premises you control are safe and without risks to health;
ensuring that any plant or substance you provide for use by employees is safe and without risks to health when properly used;
ensuring that systems of work and the working environment are safe and without risks to health;
providing information, instruction, training and supervision to employees; and
providing adequate facilities for the welfare of employees.
If you do not have employees, you still have a duty of care under the NSW Act. The duty is to ensure that other people (for example the employees of second tier subcontractors or visitors to the site) are not exposed to risks to their health or safety arising from the conduct of your business while they are at your place of work e. g the site where you are working. The NSW OH&S Act is different to other State and Territory legislation because if you breach a duty and are charged, it is up to you to prove that one of the two defences applies. The two defences are:
That it was not reasonably practicable to comply with the OHS Act.
That the offence was due to causes over which you had no control and it was impracticable to do so.
Victoria If you are an employer, you must, so far as is reasonably practicable, provide and maintain a working environment that is safe and without risks to health of employees. Independent contractors and any employees of the independent contractor are considered to be employees but only in relation to matters over 28
which you as the employer have control or would have control other than for an agreement which seeks to limit or remove that control. In particular to meet this duty, you must, so far as is reasonably practicable,
provide or maintain plant or systems of work that are safe and without risks to health;
make arrangements for the safe use, handling, storage or transport of plant or substances;
if you manage and control the workplace, maintain it in a condition that is safe and without risks to health and provide adequate facilities for the welfare of employees;
provide employee with the information, instruction, training or supervision necessary to enable them to perform their work in a way that is safe and without risks to health.
If you are an employer, you must also ensure, so far as is reasonably practicable, that persons other than your employees are not exposed to risks to their health or safety arising from the conduct of the undertaking of the employer. If you are self-employed, you must ensure, so far as is reasonably practicable, that other persons are not exposed to risks to their health or safety arising from the conduct of your undertaking (that is your business and work that your business undertakes). Queensland Under section 28 of the Workplace Health and Safety Act 1995, if you conduct a business or undertaking you must ensure that you, your workers and any other persons (including volunteers) are not exposed to risks to their health and safety arising out of the conduct of your business or undertaking. This obligation applies whether or not you conduct the business or undertaking as an employer, selfemployed person or otherwise and regardless of whether the business or undertaking is conducted for profit. To meet this obligation, depending on the circumstances, you need to:
provide and maintain a safe and healthy work environment;
provide and maintain safe plant;
ensure the safe use, handling, storage and transport of substances;
ensure safe systems of work; and
provide information, instruction, training and supervision to ensure health and safety. 29
The Queensland OH&S legislation sets out a number of ways that you can demonstrate that you met the duty in section 28. These include:
that you followed a way of preventing or minimising the risk that is prescribed in a regulation or ministerial direction;
that you followed a code of practice;
that you took reasonable precautions and exercised proper diligence.
South Australia If you have employees you must ensure, so far as is reasonably practicable, that your employees are safe from injury and risks to health. In particular you must:
provide and maintain, so far as is reasonably practicable, a safe working environment, safe systems of work and plant and substances that are in a safe condition;
provide adequate facilities if the workplace is under your control and management; and
provide information, instruction, training and supervision to employees.
If you are self-employed, you must take reasonable care to protect your own health and safety at work. You must also ensure, so far as is reasonably practicable, that any other person is safe from injury and risks to health where the person could be adversely affected through an act or omission connected with your work. Western Australia If you have employees, you must ensure that they are not exposed to hazards. In particular, you must:
provide and maintain workplaces, plant, and systems of work so that, so far as is practicable, employees are not exposed to hazards;
provide employees with the information, instruction, training and supervision they need to enable them to perform their work safely;
consult and cooperate with safety and health representatives, if any, and other employees about OH&S at the workplace;
where it is not practicable to eliminate hazards, provide personal protective clothing and equipment to protect employees against those hazards, at no cost to the employees; and make arrangements to ensure, so far as is practicable, that the following things are done in a way that does not expose employees to hazards—
o the use, cleaning, maintenance, transportation and disposal of plant; and 30
o the use, handling, processing, storage, transportation and disposal of substances. If you are self-employed you must take reasonable care to ensure your own safety and health at work. You must also ensure, so far as is practicable, that the safety or health of other people (for example the employees of second tier subcontractors or visitors to the site) is not adversely affected wholly or in part as a result of your work or any hazard that arises from or is increased by your work. Tasmania If you have employees, you must ensure, so far as is reasonably practicable, that while they are at work they are safe from injury and risks to health. In particular you must:
provide and maintain, so far as is reasonably practicable, a safe working environment, safe systems of work and plant and substances in a safe condition; and
provide facilities for the welfare of employees if the workplace is under your control or management; and
provide any information, instruction, training and supervision that is reasonably necessary to ensure that each employee is safe from injury and risks to health.
If you are self-employed you must ensure, so far as is reasonably practicable, that you are not exposed to risks to your health and safety arising from your work. You must also ensure, so far as is reasonably practicable, that no-one else is exposed to risks to their health or safety arising from your work. ACT The ACT OH&S legislation uses the terms ―person conducting a business or undertaking‖ and ―worker‖ rather than ―employer‖ and ―employee‖. A person conducting a business or undertaking includes an employer, selfemployed person, subcontractor or franchisor. As a person conducting a business or undertaking, you have a duty to ensure the health, safety and wellbeing of people in relation to work by taking reasonably practicable steps to identify risks associated with the duty and eliminate those risks. If it is not reasonably practicable to eliminate each risk you must reduce the risk as far as is reasonably practicable. You must do each of the following, in the order listed, to reduce the risk:
substitute the thing giving rise to the risk with something that gives rise to a lesser risk;
isolate the thing from persons who might be put at risk;
minimise the risk by engineering means; 31
minimise the risk using administrative means (such as the adoption of safe systems of work);
use personal protective and safety equipment.
To meet the general safety duty in the ACT OH&S legislation you need to:
provide and maintain a safe workplace and safe systems of work;
provide and maintain plant that is safe and ensure that plant is only operated by people who are qualified to operate it;
ensure that safe use, handling, storage and transport of substances;
provide adequate facilities;
monitor work safety;
provide appropriate information, instruction, training or supervision to workers; and
consult workers on matters that directly affect their work safety.
Northern Territory The Northern Territory OH&S Act requires a person who carries on a business to ensure, as far as reasonably practicable, that workers and other people are not exposed to risks to health or safety arising from the conduct of the business. A subcontractor would be considered to be carrying on a business. To meet this duty you must:
identify hazards;
identify, and assess the seriousness of, risks resulting from the hazards;
determine appropriate risk management measures to eliminate, as far as reasonably practicable, avoidable risks and to minimise, as far as reasonably practicable, unavoidable risks;
put the risk management measures into place and monitor and review their effectiveness.
Construction industry specific requirements Construction induction training All States and Territories require construction workers to have completed construction induction training before they commence work on a construction site. 32
Construction induction training includes:
General induction training – this is a course provided by registered training organisations which covers OHS legal obligations, the major hazards and risks in construction work and how these risks should be controlled. Following successful completion of the course, attendees need to apply for an induction card – commonly referred to as a white card. The RTO that provides the training will let you know how to apply for the white card. You will need to show the white card to the principal contractor. If you employ workers, you will also need to ensure that each worker has completed the general induction training and you will need to sight proof that they have done so (either the ―white card‖ or a statement of attainment if the worker has applied for but not yet received the white card).
Site induction training - site induction provides information and instruction about the site, including the contractor‘s rules and procedures for site safety and emergency management.
Safe Work Method Statements Most State and Territory OH&S legislation (except South Australia and Tasmania) requires safe work method statements to be prepared for high risk construction work. Safe Work Method Statements set out the measures to control hazards and risks to health or safety associated with high risk construction work and how those control measures will be implemented. Responsibility for preparing Safe Work Method Statements rests with the subcontractor who is undertaking the work. Principal contractors have responsibility for ensuring that Safe Work Method Statements are prepared by subcontractors. Although safe work method statements are not required by South Australian or Tasmanian OH&S law, principal contractors in these States may still require you to prepare safe work method statements for the work that you do if the project is funded in whole or part by the Australian Government and the value of the project is above certain thresholds. This is because the Australian Government OH&S Accreditation Scheme, run by the Federal Safety Commissioner, applies to such projects. OH&S agency contact details State
Name
Phone
Website
Cwlth
Safe Work Australia
02 6121 5317
www.safeworkaustralia.gov.au
Federal Safety Commissioner
1800 652 500
http://www.fsc.gov.au/
ACT
Work Safe ACT
02 6205 0333
www.worksafety.act.gov.au
NSW
WorkCover NSW
13 10 50
www.workcover.nsw.gov.au
NT
NT WorkSafe
1800 019 115
www.worksafe.nt.gov.au
33
Qld
Workplace Health and Safety Qld
1300 650 662
http://www.deir.qld.gov.au/workplace/index.htm
SA
SafeWork SA
1300 365 255
www.safework.sa.gov.au
Tas
Workplace Standards
1300 366 322
www.wst.tas.gov.au
Vic
Worksafe Victoria
1800 136 089
www.worksafe.vic.gov.au
WA
WorkSafe WA
1300 307 877
www.worksafe.wa.gov.au
9. Further information Independent Contractors: The Essential Handbook: guide Commonwealth Government available at www.business.gov.au Independent Contractors Hotline: 1300 667 850. Master Builders Australia offices Master Builders Australia Limited Level 1, 16 Bentham Street Yarralumla ACT 2600 PO Box 7170 Yarralumla ACT 2600 (02) 6202 8888, Fax: (02) 6202 8877 enquiries@masterbuilders.com.au www.masterbuilders.com.au Master Builders Association of Australian Capital Territory 1 Iron Knob Street Fyshwick ACT 2609 PO Box 1211 Fyshwick ACT 2609 (02) 6247 2099, Fax: (02) 6249 8374 canberra@mba.org.au www.mba.org.au Newcastle Master Builders Association Level 1, 165 Lambton Road Broadmeadow NSW 2292 PO Box 266 Hunter Regional Mail Centre NSW 2310 (02) 4953 9400, Fax: (02) 4953 9433 enquiries@newcastle-mba.com.au www.newcastle-mba.com.au
34
issued
by
Master Builders Association of New South Wales 52 Parramatta Road Forest Lodge NSW 2037 Private Bag 9 Broadway NSW 2007 (02) 8586 3555, Fax: (02) 9660 3700 enquiries@mbansw.asn.au www.mbansw.asn.au Master Builders Association of Northern Territory Cnr Winnellie Road and Hickman St Winnellie NT 0820 PO Box 37121 Winnellie NT 0821 (08) 8922 9666, Fax: (08) 8922 9600 info@mbant.com.au www.mbant.com.au Master Builders Association of Queensland 417-419 Wickham Terrace Brisbane QLD 4000 (07) 3225 6444, Fax: (07) 3225 6545 ask@masterbuilders.asn.au www.masterbuilders.asn.au Master Builders Association of South Australia 47 South Terrace Adelaide SA 5000 PO Box 10014 Adelaide SA 5000 (08) 8211 7466, Fax: (08) 8231 5240 buildsa@mbasa.com.au www.mbasa.com.au Master Builders Association of Tasmania 34 Patrick Street Hobart TAS 7000 GPO Box 992K Hobart TAS 7001 (03) 6234 3810, Fax: (03) 6234 3860 headoffice@mbatas.org.au www.mbatas.org.au Master Builders Association of Victoria 332 Albert Street East Melbourne VIC 3002 GPO Box 544 Melbourne VIC 3001 (03) 9411 4555, Fax: (03) 9411 4591 mbassist@mbav.com.au www.mbav.com.au 35
Master Builders Association of Western Australia 35-37 Havelock Street West Perth WA 6005 PO Box 167 West Perth WA 6872 (08) 9476 9800, Fax: (08) 9476 9801 mba@mbawa.com www.mbawa.com
36
Commonwealth Government departments and agencies with responsibilities for matters discussed in this guide Agency
Phone
Website
Australian Building and Construction Commissioner
1800003338
www.abcc/gov.au
Safe Work Australia
02 6121 5317
www.safeworkaustralia.gov.au
Australian Taxation Office
13 28 66
www.ato.gov.au www.abr.gov.au
Fair Work Australia
1300 799 675
www.fwa.gov.au
IP Australia
1300 651 010
www.ipaustralia.gov.au
Education, Employment & Workplace Relations
1300 363 079
www.deewr.gov.au
Innovation, Industry, Science and Research
02 6213 6000
www.innovation.gov.au
State and Territory departments responsible for business (including contract) matters State
Name
Phone
Website
ACT
Business and Industry Development
1800 244 650
www.business.act.gov.au
NSW
Dept Industry and Investment
1300 134 359
www.smallbiz.nsw.gov.au
NT
Dept Business and Employment
1800 193 111
www.nt.gov.au/business
Qld
Dept Employment, Economic Development and Innovation
1300 363 711
www.business.qld.gov.au
SA
Dept Trade and Economic Development
08 8303 2400
www.southaustralia.biz
Tas
Dept Economic Development, Tourism and the Arts
1800 440 026
www.development.tas.gov.au
Vic
Dept Innovation, Industry and Regional Development
13 22 15
www.business.vic.gov.au
WA
Small Business Development Corporation
13 12 49
www.sbdc.com.au
37
Notes
Š Master Builders Australia Ltd, 2011 This publication is copyright and all rights are reserved. No part of it may be reproduced, stored, transmitted or otherwise distributed, in any form or by any means without the prior written permission of the copyright holder. Written by Richard Calver, Robert Darby Suzanne Williams and Michael Baldwin Disclaimer Master Builders Australia Ltd (ABN 68 137 130 182) issues this publication to assist members and others in understanding subcontracting obligations. It does not constitute legal advice. It is for general guidance purposes only. While all care has taken in its preparation, Master Builders Australia Ltd, its directors, officers and the authors accept no responsibility for the completeness, accuracy or currency of this publication ISBN 978-0-908222-28-5
Š Master Builders Australia Ltd, 2011 This publication is copyright and all rights are reserved. No part of it may be reproduced, stored, transmitted or otherwise distributed, in any form or by any means without the prior written permission of the copyright holder.