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Sham Contracting

Fair Work Act 2009, Independent Contractors Act 2006, Awards – what happens when you are in breach of 3 pieces of legislation?

You get fined a lot of money.

What if you have 3 contracts that are Sham? You get fined for all 3 contracts.

What if you have 2 Directors?  You get fined for each Director.

Do the maths approximately $1600 fine by 3 pieces of legislation $4800 multiplied by 3 contracts $14,400, multiplied by 2 Directors – $28,800.  Those lands on your lap, you are really going to wish you hadn’t got out of bed this morning!!

What is Sham?  The problem with that answer is it is not a simple answer.  So don’t try and work out if your relationship with your Contractors is true contracts.  Get help.  Ask for assistance.  Then you can leap out of bed every morning, confident you will go to bed tonight with $28,800 still in your bank account.

Article written by Karen Vercoe from HR Online for Australian Bookkeepers Network (ABN)

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01 Mar 2016
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