Independent Contractors Australia
Independent Contractors Australia
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Independent Contractors Australia

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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. 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. ICA is a not-for-profit association incorporated under the Associations Incorporation Act (1981) of Victoria.

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

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

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.

Ken Phillips has been Executive Director of ICA since 2000.

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.

There are 1.1 million independent contractors in the Australian workforce of 11.3 million.[citation needed] 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.

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