The building and construction sector has welcomed the Australian Building and Construction Commission’s final report on sham contracting, saying it is a sound approach to tackling the issues facing the industry.
The ABCC today handed down ten recommendations from its initial inquiry into sham contracting, including coordinating an integrated whole-of-government approach to eliminating the practice; conducting more research to build a more accurate picture of sham contracting; and specifically informing construction sector employees and employers of the appropriate use of Australian Business Numbers.
Sham contracting involves workers in the building and construction sector being described as contractors, when they should, according to law, be classified as employees.
AMMA chief executive Steve Knott said the "sensible" recommendations from the ABCC would ensure genuine contracting arrangements could continue without excessive and restrictive regulation.
“The ABCC has recognised there are conflicting views on how widespread sham contracting is in the building and construction industry,” Mr Knott said.
“Despite claims by the CFMEU that the practice is rife, the reality is the current evidence doesn’t support such claims.
“It’s great news for the industry that the ABCC has acted on several of AMMA’s recommendations and decided not to impose additional compliance mechanisms on employers at this stage.”
Australian Constructors Association president Peter Brecht said improved education would be crucial to delivering better compliance.
“The proposed sham contracting guidance note, the voluntary distribution of the Fair Work Contractor Statement and the mobilisation of employer associations and the legal and accounting professions are all positive steps to ensure participants in the industry are provided with the right information on this important issue,” Mr Brect said.
“The ABCC inquiry’s recommendation for further research will also be an important step in understanding this complex issue.”
