Workplace relations Protecting the legitimate rights and Security of payment was once again operations of independent contractors in the spotlight during 2017, headlined in the residential building industry is a by a national review carried out by the policy imperative for the Association. Commonwealth Government and Throughout the year HIA gave through reforms introduced by the evidence before Commonwealth Queensland Government. parliamentary hearings into ‘Corporate Strongly opposed by HIA, the avoidance of the Fair Work Act’ to Queensland legislation will defend the lawful use of independent fundamentally redefine the contractors across the residential contractual interaction between building industry. builders, subcontractors and HIA also appeared in support of suppliers. The most significant draft Commonwealth legislation to change is the introduction of Project accelerate the transition to a new Bank Accounts (PBAs) for private building code that significantly sector building projects with a value reduces the ability of unions to greater than of $1 million. Project interfere in independent contracting payments are to be directed into a arrangements, introduce a public dedicated PBA, from which interest test for union mergers and payments to subcontractors are increase the accountability and directly made by the bank. Under behaviour of officials of unions and threat of imprisonment, the builder is other registered organisations. unable to access or use any funds HIA was appointed as a sole paid by the client into the PBA until building industry representative on the payments due to subcontractors and Federal Government’s black economy suppliers have been made. taskforce. HIA has argued that any HIA continues to advocate against proposals from the taskforce must be the security of payment, arguing that focused on real problems of cash every entity in the building process has payments and not used to reduce the a right to be paid for the work that they taxation benefits of independent have performed, including the builder’s contracting or to ‘overhaul’ the right to payment from their clients. alienation of personal services income Looking after the payment rights of laws. Independent contractors should one party at the expense of others in be taxed as businesses and have the industry will significantly increase access to legitimate business disputation and erode trust and expense deductions. working relationships in the industry. > HIA ANNUAL REPORT 2017 7|