{"id":"C2006A00162","name":"Independent Contractors Act 2006","slug":"independent-contractors-act-2006","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"162 of 2006","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":7914,"registerId":"commonwealth-C2006A00162-current","compilationNumber":null,"startDate":"2026-03-30","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Part 1","sectionType":"part","heading":"Preliminary","content":"## Part 1—Preliminary","sortOrder":0},{"sectionNumber":"1","sectionType":"section","heading":"Short title","content":"#### 1 Short title\n\n This Act may be cited as the Independent Contractors Act 2006.","sortOrder":1},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.\n\n```html\n

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

1. Sections 1 and 2 and anything in this Act not elsewhere covered by this table

The day on which this Act receives the Royal Assent.

11 December 2006

2. Sections 3 to 43

A single day to be fixed by Proclamation.

However, if any of the provision(s) do not commence within the period of 6 months beginning on the day on which this Act receives the Royal Assent, they commence on the first day after the end of that period.

1 March 2007

(see F2007L00412)

\n```\n\n> Note: This table relates only to the provisions of this Act as originally passed by the Parliament and assented to. It will not be expanded to deal with provisions inserted in this Act after assent.\n\n (2) Column 3 of the table contains additional information that is not part of this Act. Information in this column may be added to or edited in any published version of this Act.","sortOrder":2},{"sectionNumber":"3","sectionType":"section","heading":"Objects of this Act","content":"#### 3 Objects of this Act\n\n (1) The principal objects of this Act are:\n (a) to protect the freedom of independent contractors to enter into services contracts; and\n (b) to recognise independent contracting as a legitimate form of work arrangement that is primarily commercial; and\n (c) to prevent interference with the terms of genuine independent contracting arrangements.\n (2) The Act achieves these objects, principally, by providing for the rights, entitlements, obligations and liabilities of parties to services contracts to be governed by the terms of those contracts, subject to:\n (a) the rules of common law and equity as applying in relation to those contracts; and\n (b) the laws of the Commonwealth as applying in relation to those contracts; and\n (c) the laws of the States and Territories as applying in relation to those contracts, other (in general) than any such laws that confer or impose rights, entitlements, obligations or liabilities of a kind more commonly associated with employment relationships.","sortOrder":3},{"sectionNumber":"4","sectionType":"section","heading":"Definitions","content":"#### 4 Definitions\n\n In this Act:\n\n> Commonwealth authority means:\n\n (a) a body corporate established for a public purpose by or under a law of the Commonwealth; or\n (b) a body corporate:\n (i) incorporated under a law of the Commonwealth or a State or Territory; and\n (ii) in which the Commonwealth has a controlling interest.\n\n> constitutional corporation means a corporation to which paragraph 51(xx) of the Constitution applies.\n\n> Court means the Federal Court of Australia or the Federal Circuit and Family Court of Australia (Division 2).\n\n> exclusion provisions means subsections 7(1) and 10(1).\n\n> Fair Work Inspector has the same meaning as in the Fair Work Act 2009.\n\n> independent contractor is not limited to a natural person.\n\n> organisation means an organisation that is registered or an association that is recognised under the Fair Work (Registered Organisations) Act 2009.\n\n> services contract has the meaning given by section 5.","sortOrder":4},{"sectionNumber":"5","sectionType":"section","heading":"Services contract","content":"#### 5 Services contract\n\n General meaning\n (1) A services contract is a contract for services:\n (a) to which an independent contractor is a party; and\n (b) that relates to the performance of work by the independent contractor; and\n (c) that has the requisite constitutional connection specified in subsection (2).\n\n> Note: Conditions or collateral arrangements relating to a services contract may be taken to be part of the services contract: see subsection (4).\n\n The requisite constitutional connection\n (2) A contract for services has the requisite constitutional connection if:\n (a) at least one party to the contract is:\n (i) a constitutional corporation; or\n (ii) the Commonwealth or a Commonwealth authority; or\n (iii) a body corporate incorporated in a Territory in Australia; or\n (b) one or more of the following subparagraphs is satisfied:\n (i) the work concerned is wholly or principally to be performed in a Territory in Australia;\n (ii) the contract was entered into in a Territory in Australia;\n (iii) at least one party to the contract is a natural person who is resident in, or a body corporate that has its principal place of business in, a Territory in Australia.\n (3) Without limiting its effect apart from this subsection, subparagraph (2)(a)(i) also has the effect it would have if the reference to a constitutional corporation were, by express provision, confined to a constitutional corporation that has entered into the contract for the purposes of the business of the corporation.\n Conditions and collateral arrangements\n (4) A condition or collateral arrangement that relates to a services contract is taken to be part of that services contract if, were the condition or arrangement itself a contract for services, it would have the requisite constitutional connection.","sortOrder":5},{"sectionNumber":"5A","sectionType":"section","heading":"Rules may modify application of this Act in Norfolk Island","content":"#### 5A Rules may modify application of this Act in Norfolk Island\n\n (1) The Minister may, by legislative instrument, make rules prescribing modifications of this Act or the regulations for their application in relation to Norfolk Island.\n (2) To avoid doubt, the rules may not do the following:\n (a) create an offence or civil penalty;\n (b) provide powers of:\n (i) arrest or detention; or\n (ii) entry, search or seizure;\n (c) impose a tax;\n (d) set an amount to be appropriated from the Consolidated Revenue Fund under an appropriation in this Act;\n (e) directly amend the text of this Act or the regulations.\n (3) If the rules prescribe modifications of this Act or the regulations for their application in relation to Norfolk Island, then this Act or the regulations have effect as so modified in relation to Norfolk Island.\n\n> Note: This Act and the regulations would, in the absence of any such rules, apply in relation to Norfolk Island in the same way as they apply in relation to the rest of Australia.","sortOrder":6},{"sectionNumber":"Part 2","sectionType":"part","heading":"Exclusion of certain State and Territory laws","content":"## Part 2—Exclusion of certain State and Territory laws","sortOrder":7},{"sectionNumber":"6","sectionType":"section","heading":"Definitions","content":"#### 6 Definitions\n\n In this Part:\n\n> officer, of a body corporate, has the same meaning as in the Corporations Act 2001.\n\n> party, in relation to a services contract to which a body corporate is a party, includes a person who is an officer of the body corporate.\n\n> State or Territory industrial law has the same meaning as in the Fair Work Act 2009.","sortOrder":8},{"sectionNumber":"7","sectionType":"section","heading":"Exclusion of certain State and Territory laws","content":"#### 7 Exclusion of certain State and Territory laws\n\n (1) Subject to subsection (2), the rights, entitlements, obligations and liabilities of a party to a services contract are not affected by a law of a State or Territory to the extent that the law would otherwise do one or more of the following:\n (a) take or deem a party to a services contract to be an employer or employee, or otherwise treat a party to a services contract as if the party were an employer or employee, for the purposes of a law that relates to one or more workplace relations matters (or provide a means for a party to the contract to be so taken, deemed or treated);\n (b) confer or impose rights, entitlements, obligations or liabilities on a party to a services contract in relation to matters that, in an employment relationship, would be workplace relations matters (or provide a means for rights, entitlements, obligations or liabilities in relation to such matters to be conferred or imposed on a party to a services contract);\n (c) without limiting paragraphs (a) and (b)—expressly provide for a court, commission or tribunal to do any of the following in relation to a services contract on an unfairness ground:\n (i) make an order or determination (however described) setting aside, or declaring to be void or otherwise unenforceable, all or part of the contract;\n (ii) make an order or determination (however described) amending or varying all or part of the contract.\n\n> Note 1: For the meaning of workplace relations matter, see section 8.\n\n> Note 2: For the meaning of unfairness ground, see section 9.\n\n> Note 3: Division 1 of Part 5 provides for a transitional period during which the State and Territory laws (other than laws that provide as mentioned in paragraph (1)(c)) may continue to apply despite this subsection.\n\n (2) Subsection (1) does not apply in relation to:\n (a) a law of a State or Territory, to the extent that the law deals with matters relating to outworkers (including entry of a representative of a trade union to premises for a purpose connected with outworkers), other than matters mentioned in paragraph (1)(c); or\n (b) any of the following laws:\n (i) Chapter 6 of the Industrial Relations Act 1996 of New South Wales (and any other provision of that Act to the extent that it relates to, or has effect for the purposes of, a provision of Chapter 6);\n (ii) the Owner Drivers and Forestry Contractors Act 2005 of Victoria; or\n (c) a law of a State or Territory that is specified in regulations made for the purposes of this paragraph, to the extent that the law is so specified.","sortOrder":9},{"sectionNumber":"8","sectionType":"section","heading":"What are workplace relations matters","content":"#### 8 What are workplace relations matters\n\n (1) Subject to subsection (2), workplace relations matter means any of the following matters:\n (a) remuneration, allowances or other amounts payable to employees;\n (b) leave entitlements of employees;\n (c) hours of work of employees;\n (d) enforcing or terminating contracts of employment;\n (e) making, enforcing or terminating agreements (not being contracts of employment) determining terms and conditions of employment;\n (f) disputes between employees and employers, or the resolution of such disputes;\n (g) industrial action by employees or employers;\n (h) any other matter that is substantially the same as a matter that relates to employees or employers and that is dealt with by or under:\n (i) the Fair Work Act 2009; or\n (ia) the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009; or\n (ii) a State or Territory industrial law;\n unless the matter is specified in regulations made for the purposes of this paragraph;\n (i) any other matter specified in regulations made for the purposes of this paragraph.\n (2) None of the following is a workplace relations matter:\n (a) prevention of discrimination or promotion of EEO, but only if the State or Territory law concerned is neither a State or Territory industrial law nor contained in such a law;\n (b) superannuation;\n (c) workers compensation;\n (d) occupational health and safety (including entry of a representative of a trade union for a purpose connected with occupational health and safety);\n (e) child labour;\n (f) the observance of a public holiday, except the rate of payment of an employee for the public holiday;\n (g) deductions from wages or salaries;\n (h) industrial action affecting essential services;\n (i) attendance for service on a jury;\n (j) professional or trade regulation;\n (k) consumer protection;\n (l) taxation;\n (m) any other matter specified in regulations made for the purposes of this paragraph.","sortOrder":10},{"sectionNumber":"9","sectionType":"section","heading":"What is an unfairness ground","content":"#### 9 What is an unfairness ground\n\n (1) Subject to subsection (2), each of the following grounds is an unfairness ground in relation to a services contract:\n (a) the contract is unfair;\n (b) the contract is harsh or unconscionable;\n (c) the contract is unjust;\n (d) the contract is against the public interest;\n (e) the contract is designed to, or does, avoid the provisions of:\n (i) the Fair Work Act 2009; or\n (ia) the Workplace Relations Act 1996, as in force at any time before the WR Act repeal day, or as that Act applies after that day because of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009; or\n (ii) a State or Territory industrial law; or\n (iii) an award, agreement or other instrument made under a law referred to in subparagraph (i), (ia) or (ii);\n (f) the contract provides for remuneration at a rate that is, or is likely to be, less than the rate of remuneration for an employee performing similar work;\n (g) any other ground that is substantially the same as a ground specified in any of paragraphs (a) to (f);\n (h) any other ground specified in regulations made for the purposes of this paragraph.\n (2) A ground specified in subsection (1) is not an unfairness ground in relation to a services contract to the extent that the ground relates to matters that, because of subsection 8(2), are not workplace relations matters.\n (3) In this section:\n\n> WR Act repeal day has the meaning given by Schedule 2 to the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009.","sortOrder":11},{"sectionNumber":"10","sectionType":"section","heading":"Regulations may specify laws that are intended to be excluded","content":"#### 10 Regulations may specify laws that are intended to be excluded\n\n (1) The rights, entitlements, obligations and liabilities of a party to a services contract are not affected by a law of a State or Territory that is specified in regulations made for the purposes of this subsection, to the extent that the law is so specified.\n (2) To avoid doubt, subsection (1) has effect even if a law specified in regulations made under that subsection:\n (a) is a law referred to in paragraph 7(2)(a) or (b); or\n (b) deals with matters that, because of subsection 8(2), are not workplace relations matters.","sortOrder":12},{"sectionNumber":"Part 3","sectionType":"part","heading":"Unfair contracts","content":"## Part 3—Unfair contracts","sortOrder":13},{"sectionNumber":"11","sectionType":"section","heading":"Application of Part","content":"#### 11 Application of Part\n\n (1) This Part applies to a services contract, other than:\n (a) a services contract to the extent that the contract relates to the performance of work by the independent contractor for the private and domestic purposes of another party to the contract; or\n (b) without limiting paragraph (a), a services contract to which an independent contractor that is a body corporate is a party, unless the work to which the contract relates is wholly or mainly performed by:\n (i) a director of the body corporate; or\n (ii) a member of the family of a director of the body corporate.\n (2) In this section:\n\n> director has the same meaning as in the Corporations Act 2001.","sortOrder":14},{"sectionNumber":"12","sectionType":"section","heading":"Court may review services contract","content":"#### 12 Court may review services contract\n\n (1) An application may be made to the Court to review a services contract on either or both of the following grounds:\n (a) the contract is unfair;\n (b) the contract is harsh.\n\n> Note: A proceeding pending in the Federal Circuit and Family Court of Australia (Division 2) may be transferred to the Federal Court of Australia: see section 153 of the Federal Circuit and Family Court of Australia Act 2021 and section 32AC of the Federal Court of Australia Act 1976.\n\n (2) An application under subsection (1) may be made only by a party to the services contract.\n (2A) An application must not be made in relation to a services contract unless, in the year the application is made, the sum of the independent contractor’s annual rate of earnings, and such other amounts (if any) worked out in relation to the person in accordance with the regulations made for the purposes of subsection 536ND(2) of the Fair Work Act 2009, is more than the contractor high income threshold within the meaning of the Fair Work Act 2009.\n\n> Note: Division 3 of Part 3A‑5 of the Fair Work Act 2009 sets out when the FWC may order a remedy for an unfair contract term.\n\n (3) In reviewing a services contract, the Court must only have regard to:\n (a) the terms of the contract when it was made; and\n (b) to the extent that this Part allows the Court to consider other matters—other matters as existing at the time when the contract was made.\n (4) For the purposes of this Part, services contract includes a contract to vary a services contract.\n\n> Note: The effect of subsection (4) is that a contract to vary a services contract can be reviewed under this Part, as the contract to vary will itself be a services contract.","sortOrder":15},{"sectionNumber":"13","sectionType":"section","heading":"Limitation on applications for review of services contracts—prescribed circumstances","content":"#### 13 Limitation on applications for review of services contracts—prescribed circumstances\n\n An application to review a services contract must not be made under subsection 12(1) in the circumstances prescribed by the regulations.","sortOrder":16},{"sectionNumber":"14","sectionType":"section","heading":"Limitation on applications for review of services contracts—other proceedings in progress","content":"#### 14 Limitation on applications for review of services contracts—other proceedings in progress\n\n (1) An application to review a services contract must not be made under subsection 12(1) if other review proceedings have been commenced in relation to the services contract, unless the other review proceedings:\n (a) have been discontinued by the person who commenced them; or\n (b) have failed for want of jurisdiction.\n (2) A person must not commence other review proceedings in relation to a services contract if an application to review the contract has been made under subsection 12(1), unless:\n (a) the application has been discontinued by the person who made it; or\n (b) the proceedings in relation to the application have failed for want of jurisdiction.\n (3) In this section:\n\n> other review proceedings means proceedings in relation to a services contract:\n\n (a) under a provision of a law of a State or Territory that makes provision as mentioned in paragraph 7(1)(c) and is not affected by the exclusion provisions; or\n (b) under a provision of a law of the Commonwealth, or of a State or Territory, that is specified in regulations made for the purposes of this paragraph.\n\n> Note: Paragraph 7(1)(c) relates to laws that provide for contracts to be void etc. on an unfairness ground.","sortOrder":17},{"sectionNumber":"15","sectionType":"section","heading":"Powers of Court","content":"#### 15 Powers of Court\n\n (1) In reviewing a services contract in relation to which an application has been made under subsection 12(1), the Court may have regard to:\n (a) the relative strengths of the bargaining positions of the parties to the contract and, if applicable, any persons acting on behalf of the parties; and\n (b) whether any undue influence or pressure was exerted on, or any unfair tactics were used against, a party to the contract; and\n (c) whether the contract provides total remuneration that is, or is likely to be, less than that of an employee performing similar work; and\n (d) any other matter that the Court thinks is relevant.\n (3) If the Court forms the opinion that a ground referred to in subsection 12(1) is established in relation to the whole or a part of the services contract, the Court must record its opinion, stating whether the opinion relates to the whole or a specified part of the contract.\n (4) The Court may form the opinion that a ground referred to in subsection 12(1) is established in relation to the whole or a part of the services contract even if the ground was not canvassed in the application.\n\n> Note: An alternative dispute resolution process (for example, mediation) may be used to deal with some or all of the matters in dispute in a proceeding under this Part: see Part 5 of Chapter 4 of the Federal Circuit and Family Court of Australia Act 2021 and section 53A of the Federal Court of Australia Act 1976.","sortOrder":18},{"sectionNumber":"16","sectionType":"section","heading":"Orders that Court may make","content":"#### 16 Orders that Court may make\n\n (1) If the Court records an opinion under section 15 in relation to a services contract, the Court may make one or more of the following orders in relation to the opinion:\n (a) an order setting aside the whole or a part of the contract;\n (b) an order varying the contract.\n (2) An order may only be made for the purpose of placing the parties to the services contract as nearly as practicable on such a footing that the ground on which the opinion is based no longer applies.\n (3) If an application under this Part is pending, the Court may make an interim order if it considers it is desirable to do so to preserve the position of a party to the services contract.\n (4) An order takes effect on the date of the order or a later date specified in the order.\n (5) A party to the services contract may apply to the Court to enforce an order by injunction or otherwise as the Court considers appropriate.\n (6) Subject to section 14, this section does not limit any other rights of a party to the services contract.\n\n> Note 1: The rights of a party to a services contract may be affected by the exclusion provisions.\n\n> Note 2: An appeal may be brought to the Federal Court of Australia from a judgment of the Federal Circuit and Family Court of Australia (Division 2): see section 24 of the Federal Court of Australia Act 1976.","sortOrder":19},{"sectionNumber":"17","sectionType":"section","heading":"Costs only where proceeding instituted vexatiously","content":"#### 17 Costs only where proceeding instituted vexatiously\n\n (1) A party (the first party) to a proceeding (including an appeal) in a matter arising under this Part must not be ordered to pay costs incurred by any other party to the proceeding unless the first party instituted the proceeding vexatiously or without reasonable cause.\n (2) Despite subsection (1), if a court hearing a proceeding (including an appeal) in a matter arising under this Part is satisfied that a party (the first party) to the proceeding has, by unreasonable act or omission, caused another party to the proceeding to incur costs in connection with the proceeding, the court may order the first party to pay some or all of those costs.\n (3) In this section:\n\n> costs includes all legal and professional costs and disbursements, and expenses of witnesses.","sortOrder":20},{"sectionNumber":"Part 5","sectionType":"part","heading":"Transitional provisions","content":"An Act relating to independent contractors, and for related purposes\n\n## Part 1—Preliminary\n\n#### 1 Short title\n\n This Act may be cited as the Independent Contractors Act 2006.\n\n#### 2 Commencement\n\n (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.\n\n```html\n

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

1. Sections 1 and 2 and anything in this Act not elsewhere covered by this table

The day on which this Act receives the Royal Assent.

11 December 2006

2. Sections 3 to 43

A single day to be fixed by Proclamation.

However, if any of the provision(s) do not commence within the period of 6 months beginning on the day on which this Act receives the Royal Assent, they commence on the first day after the end of that period.

1 March 2007

(see F2007L00412)

\n```\n\n> Note: This table relates only to the provisions of this Act as originally passed by the Parliament and assented to. It will not be expanded to deal with provisions inserted in this Act after assent.\n\n (2) Column 3 of the table contains additional information that is not part of this Act. Information in this column may be added to or edited in any published version of this Act.\n\n#### 3 Objects of this Act\n\n (1) The principal objects of this Act are:\n (a) to protect the freedom of independent contractors to enter into services contracts; and\n (b) to recognise independent contracting as a legitimate form of work arrangement that is primarily commercial; and\n (c) to prevent interference with the terms of genuine independent contracting arrangements.\n (2) The Act achieves these objects, principally, by providing for the rights, entitlements, obligations and liabilities of parties to services contracts to be governed by the terms of those contracts, subject to:\n (a) the rules of common law and equity as applying in relation to those contracts; and\n (b) the laws of the Commonwealth as applying in relation to those contracts; and\n (c) the laws of the States and Territories as applying in relation to those contracts, other (in general) than any such laws that confer or impose rights, entitlements, obligations or liabilities of a kind more commonly associated with employment relationships.\n\n#### 4 Definitions\n\n In this Act:\n\n> Commonwealth authority means:\n\n (a) a body corporate established for a public purpose by or under a law of the Commonwealth; or\n (b) a body corporate:\n (i) incorporated under a law of the Commonwealth or a State or Territory; and\n (ii) in which the Commonwealth has a controlling interest.\n\n> constitutional corporation means a corporation to which paragraph 51(xx) of the Constitution applies.\n\n> Court means the Federal Court of Australia or the Federal Circuit and Family Court of Australia (Division 2).\n\n> exclusion provisions means subsections 7(1) and 10(1).\n\n> Fair Work Inspector has the same meaning as in the Fair Work Act 2009.\n\n> independent contractor is not limited to a natural person.\n\n> organisation means an organisation that is registered or an association that is recognised under the Fair Work (Registered Organisations) Act 2009.\n\n> services contract has the meaning given by section 5.\n\n#### 5 Services contract\n\n General meaning\n (1) A services contract is a contract for services:\n (a) to which an independent contractor is a party; and\n (b) that relates to the performance of work by the independent contractor; and\n (c) that has the requisite constitutional connection specified in subsection (2).\n\n> Note: Conditions or collateral arrangements relating to a services contract may be taken to be part of the services contract: see subsection (4).\n\n The requisite constitutional connection\n (2) A contract for services has the requisite constitutional connection if:\n (a) at least one party to the contract is:\n (i) a constitutional corporation; or\n (ii) the Commonwealth or a Commonwealth authority; or\n (iii) a body corporate incorporated in a Territory in Australia; or\n (b) one or more of the following subparagraphs is satisfied:\n (i) the work concerned is wholly or principally to be performed in a Territory in Australia;\n (ii) the contract was entered into in a Territory in Australia;\n (iii) at least one party to the contract is a natural person who is resident in, or a body corporate that has its principal place of business in, a Territory in Australia.\n (3) Without limiting its effect apart from this subsection, subparagraph (2)(a)(i) also has the effect it would have if the reference to a constitutional corporation were, by express provision, confined to a constitutional corporation that has entered into the contract for the purposes of the business of the corporation.\n Conditions and collateral arrangements\n (4) A condition or collateral arrangement that relates to a services contract is taken to be part of that services contract if, were the condition or arrangement itself a contract for services, it would have the requisite constitutional connection.\n\n#### 5A Rules may modify application of this Act in Norfolk Island\n\n (1) The Minister may, by legislative instrument, make rules prescribing modifications of this Act or the regulations for their application in relation to Norfolk Island.\n (2) To avoid doubt, the rules may not do the following:\n (a) create an offence or civil penalty;\n (b) provide powers of:\n (i) arrest or detention; or\n (ii) entry, search or seizure;\n (c) impose a tax;\n (d) set an amount to be appropriated from the Consolidated Revenue Fund under an appropriation in this Act;\n (e) directly amend the text of this Act or the regulations.\n (3) If the rules prescribe modifications of this Act or the regulations for their application in relation to Norfolk Island, then this Act or the regulations have effect as so modified in relation to Norfolk Island.\n\n> Note: This Act and the regulations would, in the absence of any such rules, apply in relation to Norfolk Island in the same way as they apply in relation to the rest of Australia.\n\n## Part 2—Exclusion of certain State and Territory laws\n\n#### 6 Definitions\n\n In this Part:\n\n> officer, of a body corporate, has the same meaning as in the Corporations Act 2001.\n\n> party, in relation to a services contract to which a body corporate is a party, includes a person who is an officer of the body corporate.\n\n> State or Territory industrial law has the same meaning as in the Fair Work Act 2009.\n\n#### 7 Exclusion of certain State and Territory laws\n\n (1) Subject to subsection (2), the rights, entitlements, obligations and liabilities of a party to a services contract are not affected by a law of a State or Territory to the extent that the law would otherwise do one or more of the following:\n (a) take or deem a party to a services contract to be an employer or employee, or otherwise treat a party to a services contract as if the party were an employer or employee, for the purposes of a law that relates to one or more workplace relations matters (or provide a means for a party to the contract to be so taken, deemed or treated);\n (b) confer or impose rights, entitlements, obligations or liabilities on a party to a services contract in relation to matters that, in an employment relationship, would be workplace relations matters (or provide a means for rights, entitlements, obligations or liabilities in relation to such matters to be conferred or imposed on a party to a services contract);\n (c) without limiting paragraphs (a) and (b)—expressly provide for a court, commission or tribunal to do any of the following in relation to a services contract on an unfairness ground:\n (i) make an order or determination (however described) setting aside, or declaring to be void or otherwise unenforceable, all or part of the contract;\n (ii) make an order or determination (however described) amending or varying all or part of the contract.\n\n> Note 1: For the meaning of workplace relations matter, see section 8.\n\n> Note 2: For the meaning of unfairness ground, see section 9.\n\n> Note 3: Division 1 of Part 5 provides for a transitional period during which the State and Territory laws (other than laws that provide as mentioned in paragraph (1)(c)) may continue to apply despite this subsection.\n\n (2) Subsection (1) does not apply in relation to:\n (a) a law of a State or Territory, to the extent that the law deals with matters relating to outworkers (including entry of a representative of a trade union to premises for a purpose connected with outworkers), other than matters mentioned in paragraph (1)(c); or\n (b) any of the following laws:\n (i) Chapter 6 of the Industrial Relations Act 1996 of New South Wales (and any other provision of that Act to the extent that it relates to, or has effect for the purposes of, a provision of Chapter 6);\n (ii) the Owner Drivers and Forestry Contractors Act 2005 of Victoria; or\n (c) a law of a State or Territory that is specified in regulations made for the purposes of this paragraph, to the extent that the law is so specified.\n\n#### 8 What are workplace relations matters\n\n (1) Subject to subsection (2), workplace relations matter means any of the following matters:\n (a) remuneration, allowances or other amounts payable to employees;\n (b) leave entitlements of employees;\n (c) hours of work of employees;\n (d) enforcing or terminating contracts of employment;\n (e) making, enforcing or terminating agreements (not being contracts of employment) determining terms and conditions of employment;\n (f) disputes between employees and employers, or the resolution of such disputes;\n (g) industrial action by employees or employers;\n (h) any other matter that is substantially the same as a matter that relates to employees or employers and that is dealt with by or under:\n (i) the Fair Work Act 2009; or\n (ia) the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009; or\n (ii) a State or Territory industrial law;\n unless the matter is specified in regulations made for the purposes of this paragraph;\n (i) any other matter specified in regulations made for the purposes of this paragraph.\n (2) None of the following is a workplace relations matter:\n (a) prevention of discrimination or promotion of EEO, but only if the State or Territory law concerned is neither a State or Territory industrial law nor contained in such a law;\n (b) superannuation;\n (c) workers compensation;\n (d) occupational health and safety (including entry of a representative of a trade union for a purpose connected with occupational health and safety);\n (e) child labour;\n (f) the observance of a public holiday, except the rate of payment of an employee for the public holiday;\n (g) deductions from wages or salaries;\n (h) industrial action affecting essential services;\n (i) attendance for service on a jury;\n (j) professional or trade regulation;\n (k) consumer protection;\n (l) taxation;\n (m) any other matter specified in regulations made for the purposes of this paragraph.\n\n#### 9 What is an unfairness ground\n\n (1) Subject to subsection (2), each of the following grounds is an unfairness ground in relation to a services contract:\n (a) the contract is unfair;\n (b) the contract is harsh or unconscionable;\n (c) the contract is unjust;\n (d) the contract is against the public interest;\n (e) the contract is designed to, or does, avoid the provisions of:\n (i) the Fair Work Act 2009; or\n (ia) the Workplace Relations Act 1996, as in force at any time before the WR Act repeal day, or as that Act applies after that day because of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009; or\n (ii) a State or Territory industrial law; or\n (iii) an award, agreement or other instrument made under a law referred to in subparagraph (i), (ia) or (ii);\n (f) the contract provides for remuneration at a rate that is, or is likely to be, less than the rate of remuneration for an employee performing similar work;\n (g) any other ground that is substantially the same as a ground specified in any of paragraphs (a) to (f);\n (h) any other ground specified in regulations made for the purposes of this paragraph.\n (2) A ground specified in subsection (1) is not an unfairness ground in relation to a services contract to the extent that the ground relates to matters that, because of subsection 8(2), are not workplace relations matters.\n (3) In this section:\n\n> WR Act repeal day has the meaning given by Schedule 2 to the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009.\n\n#### 10 Regulations may specify laws that are intended to be excluded\n\n (1) The rights, entitlements, obligations and liabilities of a party to a services contract are not affected by a law of a State or Territory that is specified in regulations made for the purposes of this subsection, to the extent that the law is so specified.\n (2) To avoid doubt, subsection (1) has effect even if a law specified in regulations made under that subsection:\n (a) is a law referred to in paragraph 7(2)(a) or (b); or\n (b) deals with matters that, because of subsection 8(2), are not workplace relations matters.\n\n## Part 3—Unfair contracts\n\n#### 11 Application of Part\n\n (1) This Part applies to a services contract, other than:\n (a) a services contract to the extent that the contract relates to the performance of work by the independent contractor for the private and domestic purposes of another party to the contract; or\n (b) without limiting paragraph (a), a services contract to which an independent contractor that is a body corporate is a party, unless the work to which the contract relates is wholly or mainly performed by:\n (i) a director of the body corporate; or\n (ii) a member of the family of a director of the body corporate.\n (2) In this section:\n\n> director has the same meaning as in the Corporations Act 2001.\n\n#### 12 Court may review services contract\n\n (1) An application may be made to the Court to review a services contract on either or both of the following grounds:\n (a) the contract is unfair;\n (b) the contract is harsh.\n\n> Note: A proceeding pending in the Federal Circuit and Family Court of Australia (Division 2) may be transferred to the Federal Court of Australia: see section 153 of the Federal Circuit and Family Court of Australia Act 2021 and section 32AC of the Federal Court of Australia Act 1976.\n\n (2) An application under subsection (1) may be made only by a party to the services contract.\n (2A) An application must not be made in relation to a services contract unless, in the year the application is made, the sum of the independent contractor’s annual rate of earnings, and such other amounts (if any) worked out in relation to the person in accordance with the regulations made for the purposes of subsection 536ND(2) of the Fair Work Act 2009, is more than the contractor high income threshold within the meaning of the Fair Work Act 2009.\n\n> Note: Division 3 of Part 3A‑5 of the Fair Work Act 2009 sets out when the FWC may order a remedy for an unfair contract term.\n\n (3) In reviewing a services contract, the Court must only have regard to:\n (a) the terms of the contract when it was made; and\n (b) to the extent that this Part allows the Court to consider other matters—other matters as existing at the time when the contract was made.\n (4) For the purposes of this Part, services contract includes a contract to vary a services contract.\n\n> Note: The effect of subsection (4) is that a contract to vary a services contract can be reviewed under this Part, as the contract to vary will itself be a services contract.\n\n#### 13 Limitation on applications for review of services contracts—prescribed circumstances\n\n An application to review a services contract must not be made under subsection 12(1) in the circumstances prescribed by the regulations.\n\n#### 14 Limitation on applications for review of services contracts—other proceedings in progress\n\n (1) An application to review a services contract must not be made under subsection 12(1) if other review proceedings have been commenced in relation to the services contract, unless the other review proceedings:\n (a) have been discontinued by the person who commenced them; or\n (b) have failed for want of jurisdiction.\n (2) A person must not commence other review proceedings in relation to a services contract if an application to review the contract has been made under subsection 12(1), unless:\n (a) the application has been discontinued by the person who made it; or\n (b) the proceedings in relation to the application have failed for want of jurisdiction.\n (3) In this section:\n\n> other review proceedings means proceedings in relation to a services contract:\n\n (a) under a provision of a law of a State or Territory that makes provision as mentioned in paragraph 7(1)(c) and is not affected by the exclusion provisions; or\n (b) under a provision of a law of the Commonwealth, or of a State or Territory, that is specified in regulations made for the purposes of this paragraph.\n\n> Note: Paragraph 7(1)(c) relates to laws that provide for contracts to be void etc. on an unfairness ground.\n\n#### 15 Powers of Court\n\n (1) In reviewing a services contract in relation to which an application has been made under subsection 12(1), the Court may have regard to:\n (a) the relative strengths of the bargaining positions of the parties to the contract and, if applicable, any persons acting on behalf of the parties; and\n (b) whether any undue influence or pressure was exerted on, or any unfair tactics were used against, a party to the contract; and\n (c) whether the contract provides total remuneration that is, or is likely to be, less than that of an employee performing similar work; and\n (d) any other matter that the Court thinks is relevant.\n (3) If the Court forms the opinion that a ground referred to in subsection 12(1) is established in relation to the whole or a part of the services contract, the Court must record its opinion, stating whether the opinion relates to the whole or a specified part of the contract.\n (4) The Court may form the opinion that a ground referred to in subsection 12(1) is established in relation to the whole or a part of the services contract even if the ground was not canvassed in the application.\n\n> Note: An alternative dispute resolution process (for example, mediation) may be used to deal with some or all of the matters in dispute in a proceeding under this Part: see Part 5 of Chapter 4 of the Federal Circuit and Family Court of Australia Act 2021 and section 53A of the Federal Court of Australia Act 1976.\n\n#### 16 Orders that Court may make\n\n (1) If the Court records an opinion under section 15 in relation to a services contract, the Court may make one or more of the following orders in relation to the opinion:\n (a) an order setting aside the whole or a part of the contract;\n (b) an order varying the contract.\n (2) An order may only be made for the purpose of placing the parties to the services contract as nearly as practicable on such a footing that the ground on which the opinion is based no longer applies.\n (3) If an application under this Part is pending, the Court may make an interim order if it considers it is desirable to do so to preserve the position of a party to the services contract.\n (4) An order takes effect on the date of the order or a later date specified in the order.\n (5) A party to the services contract may apply to the Court to enforce an order by injunction or otherwise as the Court considers appropriate.\n (6) Subject to section 14, this section does not limit any other rights of a party to the services contract.\n\n> Note 1: The rights of a party to a services contract may be affected by the exclusion provisions.\n\n> Note 2: An appeal may be brought to the Federal Court of Australia from a judgment of the Federal Circuit and Family Court of Australia (Division 2): see section 24 of the Federal Court of Australia Act 1976.\n\n#### 17 Costs only where proceeding instituted vexatiously\n\n (1) A party (the first party) to a proceeding (including an appeal) in a matter arising under this Part must not be ordered to pay costs incurred by any other party to the proceeding unless the first party instituted the proceeding vexatiously or without reasonable cause.\n (2) Despite subsection (1), if a court hearing a proceeding (including an appeal) in a matter arising under this Part is satisfied that a party (the first party) to the proceeding has, by unreasonable act or omission, caused another party to the proceeding to incur costs in connection with the proceeding, the court may order the first party to pay some or all of those costs.\n (3) In this section:\n\n> costs includes all legal and professional costs and disbursements, and expenses of witnesses.\n\n## Part 5—Transitional provisions\n\n### Division 1—State and Territory laws other than unfair contracts laws\n\n#### 31 Definitions\n\n In this Division:\n\n> continuation contract, in relation to a services contract, has the meaning given by section 32.\n\n> contract period means the period in relation to which a contract has effect.\n\n> covers: a reform opt‑in agreement covers a services contract as described in subsection 33(3).\n\n> date of effect, in relation to a reform opt‑in agreement, has the meaning given by subsection 33(2).\n\n> pre‑reform commencement contract means a services contract that was entered into before the reform commencement.\n\n> reform commencement means the commencement of Part 2.\n\n> reform opt‑in agreement has the meaning given by subsection 33(1).\n\n> related continuation contract has the meaning given by subsection 32(3).\n\n> State or Territory contractor laws means the laws of the States and Territories, as in force from time to time after the reform commencement, to the extent that they would, apart from this Division, be affected by the exclusion provisions, but not including laws to the extent that they make provision as mentioned in paragraph 7(1)(c).\n\n> Note: Paragraph 7(1)(c) relates to laws that provide for services contracts to be void etc. on an unfairness ground. Transitional provisions relating to the effect of Part 2 on such laws are contained in Division 2 of this Part.\n\n#### 32 Continuation contracts and related continuation contracts\n\n Continuation contracts\n (1) A services contract (the later contract) is a continuation contract in relation to a pre‑reform commencement contract if:\n (a) the parties to the later contract are the same as the parties to the pre‑reform commencement contract; and\n (b) one or more of the following subparagraphs is satisfied in relation to the later contract:\n (i) the later contract is entered into pursuant to an option or similar right contained in the pre‑reform commencement contract, or contained in another contract that is a continuation contract in relation to the pre‑reform commencement contract;\n (ii) the contract period of the later contract immediately follows the contract period of the pre‑reform commencement contract;\n (iii) the contract period of the later contract immediately follows the contract period of another contract that is a continuation contract in relation to the pre‑reform commencement contract; and\n (c) the later contract relates to the performance of the same kind of work as the pre‑reform commencement contract.\n\n> Note 1: See also subsection 35(7), under which a contract may be taken to be a continuation contract.\n\n> Note 2: For how this section applies in a transfer of business situation, see section 36.\n\n (2) For the purposes of subparagraphs (1)(b)(ii) and (iii), the contract period of a services contract is taken to immediately follow the contract period of another services contract even if those periods are interrupted by an interval, but only if that interval:\n (a) is consistent with a regular pattern of contracting between the parties to the contracts; or\n (b) is covered by regulations made for the purposes of this paragraph.\n Related continuation contracts\n (3) A services contract is a related continuation contract in relation to another services contract if:\n (a) the following subparagraphs are satisfied:\n (i) the other services contract is a pre‑reform commencement contract;\n (ii) the first‑mentioned services contract is a continuation contract in relation to the other contract; or\n (b) the 2 services contracts are continuation contracts in relation to the same pre‑reform commencement contract.\n\n#### 33 Reform opt‑in agreement\n\n (1) A reform opt‑in agreement is an agreement in writing, signed by the parties to the agreement, to one or more of the following effects:\n (a) that the parties no longer want the State or Territory contractor laws to apply to a specified services contract, or to any related continuation contracts in relation to the specified contract, that the parties have entered into or may enter into;\n (b) that the parties no longer want the State or Territory contractor laws to apply to any services contracts of a specified class, or to any related continuation contracts in relation to any contracts in the specified class, that the parties have entered into or may enter into;\n (c) that the parties no longer want the State or Territory contractor laws to apply to any services contracts that they have entered into or may enter into.\n\n> Note: The agreement must relate to the whole body of the State or Territory contractor laws (rather than just to some of those laws).\n\n (2) A reform opt‑in agreement’s date of effect is:\n (a) the date on which the agreement is entered into; or\n (b) if a later date is specified in the agreement as its date of effect—that later date.\n (3) A reform opt‑in agreement covers a services contract if the agreement is to the effect that the parties to the agreement no longer want the State or Territory contractor laws to apply to the contract (whether the parties’ intent is expressed as mentioned in paragraph (1)(a), (b) or (c)).\n (4) A purported revocation or variation of a reform opt‑in agreement is of no effect for the purposes of this Division.\n\n#### 34 Prohibited conduct in relation to reform opt‑in agreements\n\n (1) A person must not:\n (a) take or threaten to take any action; or\n (b) refrain, or threaten to refrain, from taking any action;\n with intent to coerce another person (the targeted person) to enter into, or to not enter into, a reform opt‑in agreement.\n (2) A person must not knowingly make a false statement with intent to persuade or influence another person (the targeted person) to enter into, or to not enter into, a reform opt‑in agreement.\n (3) If a person breaches subsection (1) or (2), a penalty may be imposed by the Court.\n (4) The maximum penalty that may be imposed under subsection (3) for a breach of subsection (1) or (2) is:\n (a) 300 penalty units for a body corporate; or\n (b) 60 penalty units in other cases.\n (5) An application to the Court for the imposition of a penalty under subsection (3) may be made by:\n (a) a Fair Work Inspector; or\n (b) the targeted person; or\n (c) an organisation of employees, or an organisation or association of employers, of which the targeted person is a member, if it is acting with the written consent of the targeted person.\n (6) A penalty imposed under subsection (3) is payable to the Commonwealth, or to some other person if the Court so directs.\n (7) Division 4 of Part 4‑1 of the Fair Work Act 2009 has effect as if a breach of subsection (1) or (2) were a contravention of a civil remedy provision within the meaning of that Division.\n\n#### 35 Continued application of the State or Territory contractor laws to certain services contracts\n\n Services contracts to which this section applies\n (1) This section applies to a services contract (the relevant contract) if:\n (a) the relevant contract:\n (i) is a pre‑reform commencement contract; or\n (ii) is a continuation contract in relation to a pre‑reform commencement contract; and\n (b) some or all of the contract period of the relevant contract occurs after the reform commencement; and\n (c) the contractor law test is satisfied in relation to the relevant contract (see subsection (2)).\n (2) The contractor law test is satisfied in relation to the relevant contract if one of the following paragraphs applies to the contract that, as between the relevant contract and its related continuation contracts (if any), is the contract (the test contract) that was entered into both before the reform commencement and closest to the reform commencement:\n (a) if the contract period of the test contract did not start before the reform commencement—one or more of the State or Territory contractor laws would have applied before the reform commencement in relation to the test contract if its contract period had started when it was entered into;\n (b) if the contract period of the test contract started before the reform commencement—one or more of the State or Territory contractor laws applied before the reform commencement in relation to the test contract.\n (3) For the purpose of subsection (2), a reference to the State or Territory contractor laws, in relation to a time before the reform commencement, is a reference to laws that would have been State or Territory contractor laws if:\n (a) this Division had been in force at that time; and\n (b) the reform commencement had occurred before that time.\n Exclusion provisions do not apply\n (4) Subject to subsection (5), the exclusion provisions do not apply in relation to the State or Territory contractor laws in relation to so much of the contract period of the relevant contract as occurs after the reform commencement and before the first of the following days (the transition day):\n (a) the date of effect of a reform opt‑in agreement (if any) that covers the contract;\n (b) the first day after the end of the period of 3 years that started on the reform commencement.\n\n> Note: If the exclusion provisions do not apply, the State or Territory contractor laws will continue to apply.\n\n (5) The regulations may provide that subsection (4) does not affect the application of the exclusion provisions in relation to a specified State or Territory contractor law, either:\n (a) generally; or\n (b) as specified in the regulations.\n What if the contract period ends before the transition day?\n (6) If:\n (a) the contract period of the relevant contract ends before the transition day; and\n (b) there is no further contract between the parties that (disregarding subsection (7)) is a related continuation contract in relation to the relevant contract;\n the consequences that result from the contract period ending (including consequences relating to the fact that there is no further contract as mentioned in paragraph (b)) are as provided by or under the relevant terms of any contract between the parties, the State or Territory contractor laws and any other relevant laws.\n\n> Note: The independent contractor may (for example) have an entitlement under the State or Territory contractor laws to recover an amount on account of accrued entitlements (such as leave), an entitlement to a reinstatement or re‑engagement remedy, or an entitlement to a redundancy payment.\n\n (7) If:\n (a) in a situation to which subsection (6) applies, the independent contractor obtains a remedy that results in his or her reinstatement or re‑engagement, with effect from a time before the transition day; and\n (b) the services contract (the remedy contract) under which he or she is reinstated or re‑engaged would not otherwise be a continuation contract in relation to:\n (i) if subparagraph (1)(a)(i) applies—the relevant contract; or\n (ii) if subparagraph (1)(a)(ii) applies—the pre‑reform commencement contract referred to in that subparagraph;\n the remedy contract is taken to be such a continuation contract.\n What if the contract period does not end before the transition day?\n (8) If the contract period of the relevant contract does not end before the transition day, the contract is to be treated, for the purposes of the State or Territory contractor laws, as if, on the transition day, it had been brought to an end by agreement of the parties (rather than by the unilateral act of one party).\n\n> Note: Because of this subsection, the occurrence of the transition day may trigger an entitlement under a State or Territory contractor law to recover an amount on account of accrued entitlements (such as leave). But the occurrence of the transition day should not trigger an entitlement under such a law to a reinstatement or re‑engagement remedy, or to a redundancy payment, as such remedies are generally not available for the ending of contracts by agreement.\n\n#### 36 How section 35 applies if there is a transfer of business\n\n When this section applies to a post‑transfer contract—general\n (1) Subject to subsection (2), this section applies to a services contract (the post‑transfer contract) if:\n (a) under a services contract (the first contract) between an independent contractor and another person (the former principal), the independent contractor performs or performed work of a particular kind for a business; and\n (b) the first contract:\n (i) is a pre‑reform commencement contract; or\n (ii) is a continuation contract in relation to a pre‑reform commencement contract; and\n (c) after the reform commencement, there is a transfer (by whatever means, and however described) of all or part of the business; and\n (d) the post‑transfer contract is a services contract, entered into by the independent contractor with another person, that is for the performance, after the transfer takes effect, of the same kind of work for the business or the transferred part of the business.\n Section does not apply to a post‑transfer contract if reform opt‑in agreement has already taken effect\n (2) This section does not apply to the post‑transfer contract if:\n (a) a reform opt‑in agreement covered the first contract, or covered another contract that is a continuation contract in relation to:\n (i) if subparagraph (1)(b)(i) applies—the first contract; or\n (ii) if subparagraph (1)(b)(ii) applies—the pre‑reform commencement contract referred to in that subparagraph; and\n (b) the reform opt‑in agreement’s date of effect is before the transfer takes effect.\n\n> Note: If this subsection applies, subsection (3) will not apply and so the post‑transfer contract cannot be a continuation contract.\n\n If section applies, post‑transfer contract may be continuation contract (even though parties are not the same)\n (3) If this section applies to the post‑transfer contract, then, in determining for the purpose of section 35 whether the post‑transfer contract is a continuation contract in relation to:\n (a) if subparagraph (1)(b)(i) applies—the first contract; or\n (b) if subparagraph (1)(b)(ii) applies—the pre‑reform commencement contract referred to in that subparagraph;\n the following provisions have effect:\n (c) the parties to the post‑transfer contract are taken to be the same as the parties to the contract referred to in whichever of paragraphs (a) and (b) of this subsection applies;\n (d) subsection 32(2) has effect as if that subsection also contained a paragraph referring to the interval being because of the transfer of the business or the part of the business.\n\n#### 37 Application of the State or Territory contractor laws in relation to pre‑reform commencement matters not affected by exclusion provisions\n\n The exclusion provisions do not affect the application of the State or Territory contractor laws in relation to matters that occurred before the reform commencement.\n\n### Division 2—Unfair contracts laws\n\n#### 38 Definition\n\n In this Division:\n\n> reform commencement means the commencement of Part 2.\n\n#### 39 New applications relating to unfair contracts\n\n An application in relation to a services contract may be made under Part 3 even if the contract was entered into before the reform commencement.\n\n#### 40 Applications under the Workplace Relations Act 1996 in progress at the reform commencement\n\n (1) This section applies to an application in relation to a contract for services that was made before the reform commencement under section 832 of the Workplace Relations Act 1996 if the proceeding (including any appeal to a court in relation to the proceeding) in relation to the application was not finally determined before the reform commencement.\n (2) Despite the repeal of sections 832, 833 and 834 of the Workplace Relations Act 1996 by the Workplace Relations Legislation Amendment (Independent Contractors) Act 2006, those sections continue to apply to the application after the reform commencement as if they had not been repealed.\n\n#### 41 Applications under an excluded State or Territory law in progress at the reform commencement\n\n (1) This section applies to a proceeding in relation to a contract for services that was commenced before the reform commencement under a law of a State or Territory that makes provision as mentioned in paragraph 7(1)(c) if the proceeding (including any appeal) was not finally determined before the reform commencement.\n (2) The exclusion provisions do not apply in relation to the law of the State or Territory (including any law relating to appeals) to the extent that it relates to the proceeding (including any appeal).\n\n## Part 6—Regulations\n\n#### 42 Regulations may make provision for transitional matters\n\n (1) The regulations may make provision for matters of a transitional, saving or application nature arising out of, or relating to, the provisions of this Act or of the Workplace Relations Legislation Amendment (Independent Contractors) Act 2006.\n (2) Without limiting subsection (1), regulations made for the purpose of that subsection may prescribe modifications of Division 1 of Part 5.\n (3) Subsection 12(2) (retrospective application of legislative instruments) of the Legislation Act 2003 does not apply to a regulation made for the purposes of subsection (1).\n (4) Subsection 12(1A) (retrospective commencement of legislative instruments) of the Legislation Act 2003 does not apply to a regulation made for the purposes of subsection (1) that creates, modifies or otherwise affects a provision that makes a person liable to an offence or civil penalty.\n\n#### 43 Power to make regulations\n\n The Governor‑General may make regulations prescribing matters:\n (a) required or permitted by this Act to be prescribed; or\n (b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.","sortOrder":21},{"sectionNumber":"Division 1","sectionType":"division","heading":"State and Territory laws other than unfair contracts laws","content":"An Act relating to independent contractors, and for related purposes\n\n## Part 1—Preliminary\n\n#### 1 Short title\n\n This Act may be cited as the Independent Contractors Act 2006.\n\n#### 2 Commencement\n\n (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.\n\n```html\n

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

1. Sections 1 and 2 and anything in this Act not elsewhere covered by this table

The day on which this Act receives the Royal Assent.

11 December 2006

2. Sections 3 to 43

A single day to be fixed by Proclamation.

However, if any of the provision(s) do not commence within the period of 6 months beginning on the day on which this Act receives the Royal Assent, they commence on the first day after the end of that period.

1 March 2007

(see F2007L00412)

\n```\n\n> Note: This table relates only to the provisions of this Act as originally passed by the Parliament and assented to. It will not be expanded to deal with provisions inserted in this Act after assent.\n\n (2) Column 3 of the table contains additional information that is not part of this Act. Information in this column may be added to or edited in any published version of this Act.\n\n#### 3 Objects of this Act\n\n (1) The principal objects of this Act are:\n (a) to protect the freedom of independent contractors to enter into services contracts; and\n (b) to recognise independent contracting as a legitimate form of work arrangement that is primarily commercial; and\n (c) to prevent interference with the terms of genuine independent contracting arrangements.\n (2) The Act achieves these objects, principally, by providing for the rights, entitlements, obligations and liabilities of parties to services contracts to be governed by the terms of those contracts, subject to:\n (a) the rules of common law and equity as applying in relation to those contracts; and\n (b) the laws of the Commonwealth as applying in relation to those contracts; and\n (c) the laws of the States and Territories as applying in relation to those contracts, other (in general) than any such laws that confer or impose rights, entitlements, obligations or liabilities of a kind more commonly associated with employment relationships.\n\n#### 4 Definitions\n\n In this Act:\n\n> Commonwealth authority means:\n\n (a) a body corporate established for a public purpose by or under a law of the Commonwealth; or\n (b) a body corporate:\n (i) incorporated under a law of the Commonwealth or a State or Territory; and\n (ii) in which the Commonwealth has a controlling interest.\n\n> constitutional corporation means a corporation to which paragraph 51(xx) of the Constitution applies.\n\n> Court means the Federal Court of Australia or the Federal Circuit and Family Court of Australia (Division 2).\n\n> exclusion provisions means subsections 7(1) and 10(1).\n\n> Fair Work Inspector has the same meaning as in the Fair Work Act 2009.\n\n> independent contractor is not limited to a natural person.\n\n> organisation means an organisation that is registered or an association that is recognised under the Fair Work (Registered Organisations) Act 2009.\n\n> services contract has the meaning given by section 5.\n\n#### 5 Services contract\n\n General meaning\n (1) A services contract is a contract for services:\n (a) to which an independent contractor is a party; and\n (b) that relates to the performance of work by the independent contractor; and\n (c) that has the requisite constitutional connection specified in subsection (2).\n\n> Note: Conditions or collateral arrangements relating to a services contract may be taken to be part of the services contract: see subsection (4).\n\n The requisite constitutional connection\n (2) A contract for services has the requisite constitutional connection if:\n (a) at least one party to the contract is:\n (i) a constitutional corporation; or\n (ii) the Commonwealth or a Commonwealth authority; or\n (iii) a body corporate incorporated in a Territory in Australia; or\n (b) one or more of the following subparagraphs is satisfied:\n (i) the work concerned is wholly or principally to be performed in a Territory in Australia;\n (ii) the contract was entered into in a Territory in Australia;\n (iii) at least one party to the contract is a natural person who is resident in, or a body corporate that has its principal place of business in, a Territory in Australia.\n (3) Without limiting its effect apart from this subsection, subparagraph (2)(a)(i) also has the effect it would have if the reference to a constitutional corporation were, by express provision, confined to a constitutional corporation that has entered into the contract for the purposes of the business of the corporation.\n Conditions and collateral arrangements\n (4) A condition or collateral arrangement that relates to a services contract is taken to be part of that services contract if, were the condition or arrangement itself a contract for services, it would have the requisite constitutional connection.\n\n#### 5A Rules may modify application of this Act in Norfolk Island\n\n (1) The Minister may, by legislative instrument, make rules prescribing modifications of this Act or the regulations for their application in relation to Norfolk Island.\n (2) To avoid doubt, the rules may not do the following:\n (a) create an offence or civil penalty;\n (b) provide powers of:\n (i) arrest or detention; or\n (ii) entry, search or seizure;\n (c) impose a tax;\n (d) set an amount to be appropriated from the Consolidated Revenue Fund under an appropriation in this Act;\n (e) directly amend the text of this Act or the regulations.\n (3) If the rules prescribe modifications of this Act or the regulations for their application in relation to Norfolk Island, then this Act or the regulations have effect as so modified in relation to Norfolk Island.\n\n> Note: This Act and the regulations would, in the absence of any such rules, apply in relation to Norfolk Island in the same way as they apply in relation to the rest of Australia.\n\n## Part 2—Exclusion of certain State and Territory laws\n\n#### 6 Definitions\n\n In this Part:\n\n> officer, of a body corporate, has the same meaning as in the Corporations Act 2001.\n\n> party, in relation to a services contract to which a body corporate is a party, includes a person who is an officer of the body corporate.\n\n> State or Territory industrial law has the same meaning as in the Fair Work Act 2009.\n\n#### 7 Exclusion of certain State and Territory laws\n\n (1) Subject to subsection (2), the rights, entitlements, obligations and liabilities of a party to a services contract are not affected by a law of a State or Territory to the extent that the law would otherwise do one or more of the following:\n (a) take or deem a party to a services contract to be an employer or employee, or otherwise treat a party to a services contract as if the party were an employer or employee, for the purposes of a law that relates to one or more workplace relations matters (or provide a means for a party to the contract to be so taken, deemed or treated);\n (b) confer or impose rights, entitlements, obligations or liabilities on a party to a services contract in relation to matters that, in an employment relationship, would be workplace relations matters (or provide a means for rights, entitlements, obligations or liabilities in relation to such matters to be conferred or imposed on a party to a services contract);\n (c) without limiting paragraphs (a) and (b)—expressly provide for a court, commission or tribunal to do any of the following in relation to a services contract on an unfairness ground:\n (i) make an order or determination (however described) setting aside, or declaring to be void or otherwise unenforceable, all or part of the contract;\n (ii) make an order or determination (however described) amending or varying all or part of the contract.\n\n> Note 1: For the meaning of workplace relations matter, see section 8.\n\n> Note 2: For the meaning of unfairness ground, see section 9.\n\n> Note 3: Division 1 of Part 5 provides for a transitional period during which the State and Territory laws (other than laws that provide as mentioned in paragraph (1)(c)) may continue to apply despite this subsection.\n\n (2) Subsection (1) does not apply in relation to:\n (a) a law of a State or Territory, to the extent that the law deals with matters relating to outworkers (including entry of a representative of a trade union to premises for a purpose connected with outworkers), other than matters mentioned in paragraph (1)(c); or\n (b) any of the following laws:\n (i) Chapter 6 of the Industrial Relations Act 1996 of New South Wales (and any other provision of that Act to the extent that it relates to, or has effect for the purposes of, a provision of Chapter 6);\n (ii) the Owner Drivers and Forestry Contractors Act 2005 of Victoria; or\n (c) a law of a State or Territory that is specified in regulations made for the purposes of this paragraph, to the extent that the law is so specified.\n\n#### 8 What are workplace relations matters\n\n (1) Subject to subsection (2), workplace relations matter means any of the following matters:\n (a) remuneration, allowances or other amounts payable to employees;\n (b) leave entitlements of employees;\n (c) hours of work of employees;\n (d) enforcing or terminating contracts of employment;\n (e) making, enforcing or terminating agreements (not being contracts of employment) determining terms and conditions of employment;\n (f) disputes between employees and employers, or the resolution of such disputes;\n (g) industrial action by employees or employers;\n (h) any other matter that is substantially the same as a matter that relates to employees or employers and that is dealt with by or under:\n (i) the Fair Work Act 2009; or\n (ia) the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009; or\n (ii) a State or Territory industrial law;\n unless the matter is specified in regulations made for the purposes of this paragraph;\n (i) any other matter specified in regulations made for the purposes of this paragraph.\n (2) None of the following is a workplace relations matter:\n (a) prevention of discrimination or promotion of EEO, but only if the State or Territory law concerned is neither a State or Territory industrial law nor contained in such a law;\n (b) superannuation;\n (c) workers compensation;\n (d) occupational health and safety (including entry of a representative of a trade union for a purpose connected with occupational health and safety);\n (e) child labour;\n (f) the observance of a public holiday, except the rate of payment of an employee for the public holiday;\n (g) deductions from wages or salaries;\n (h) industrial action affecting essential services;\n (i) attendance for service on a jury;\n (j) professional or trade regulation;\n (k) consumer protection;\n (l) taxation;\n (m) any other matter specified in regulations made for the purposes of this paragraph.\n\n#### 9 What is an unfairness ground\n\n (1) Subject to subsection (2), each of the following grounds is an unfairness ground in relation to a services contract:\n (a) the contract is unfair;\n (b) the contract is harsh or unconscionable;\n (c) the contract is unjust;\n (d) the contract is against the public interest;\n (e) the contract is designed to, or does, avoid the provisions of:\n (i) the Fair Work Act 2009; or\n (ia) the Workplace Relations Act 1996, as in force at any time before the WR Act repeal day, or as that Act applies after that day because of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009; or\n (ii) a State or Territory industrial law; or\n (iii) an award, agreement or other instrument made under a law referred to in subparagraph (i), (ia) or (ii);\n (f) the contract provides for remuneration at a rate that is, or is likely to be, less than the rate of remuneration for an employee performing similar work;\n (g) any other ground that is substantially the same as a ground specified in any of paragraphs (a) to (f);\n (h) any other ground specified in regulations made for the purposes of this paragraph.\n (2) A ground specified in subsection (1) is not an unfairness ground in relation to a services contract to the extent that the ground relates to matters that, because of subsection 8(2), are not workplace relations matters.\n (3) In this section:\n\n> WR Act repeal day has the meaning given by Schedule 2 to the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009.\n\n#### 10 Regulations may specify laws that are intended to be excluded\n\n (1) The rights, entitlements, obligations and liabilities of a party to a services contract are not affected by a law of a State or Territory that is specified in regulations made for the purposes of this subsection, to the extent that the law is so specified.\n (2) To avoid doubt, subsection (1) has effect even if a law specified in regulations made under that subsection:\n (a) is a law referred to in paragraph 7(2)(a) or (b); or\n (b) deals with matters that, because of subsection 8(2), are not workplace relations matters.\n\n## Part 3—Unfair contracts\n\n#### 11 Application of Part\n\n (1) This Part applies to a services contract, other than:\n (a) a services contract to the extent that the contract relates to the performance of work by the independent contractor for the private and domestic purposes of another party to the contract; or\n (b) without limiting paragraph (a), a services contract to which an independent contractor that is a body corporate is a party, unless the work to which the contract relates is wholly or mainly performed by:\n (i) a director of the body corporate; or\n (ii) a member of the family of a director of the body corporate.\n (2) In this section:\n\n> director has the same meaning as in the Corporations Act 2001.\n\n#### 12 Court may review services contract\n\n (1) An application may be made to the Court to review a services contract on either or both of the following grounds:\n (a) the contract is unfair;\n (b) the contract is harsh.\n\n> Note: A proceeding pending in the Federal Circuit and Family Court of Australia (Division 2) may be transferred to the Federal Court of Australia: see section 153 of the Federal Circuit and Family Court of Australia Act 2021 and section 32AC of the Federal Court of Australia Act 1976.\n\n (2) An application under subsection (1) may be made only by a party to the services contract.\n (2A) An application must not be made in relation to a services contract unless, in the year the application is made, the sum of the independent contractor’s annual rate of earnings, and such other amounts (if any) worked out in relation to the person in accordance with the regulations made for the purposes of subsection 536ND(2) of the Fair Work Act 2009, is more than the contractor high income threshold within the meaning of the Fair Work Act 2009.\n\n> Note: Division 3 of Part 3A‑5 of the Fair Work Act 2009 sets out when the FWC may order a remedy for an unfair contract term.\n\n (3) In reviewing a services contract, the Court must only have regard to:\n (a) the terms of the contract when it was made; and\n (b) to the extent that this Part allows the Court to consider other matters—other matters as existing at the time when the contract was made.\n (4) For the purposes of this Part, services contract includes a contract to vary a services contract.\n\n> Note: The effect of subsection (4) is that a contract to vary a services contract can be reviewed under this Part, as the contract to vary will itself be a services contract.\n\n#### 13 Limitation on applications for review of services contracts—prescribed circumstances\n\n An application to review a services contract must not be made under subsection 12(1) in the circumstances prescribed by the regulations.\n\n#### 14 Limitation on applications for review of services contracts—other proceedings in progress\n\n (1) An application to review a services contract must not be made under subsection 12(1) if other review proceedings have been commenced in relation to the services contract, unless the other review proceedings:\n (a) have been discontinued by the person who commenced them; or\n (b) have failed for want of jurisdiction.\n (2) A person must not commence other review proceedings in relation to a services contract if an application to review the contract has been made under subsection 12(1), unless:\n (a) the application has been discontinued by the person who made it; or\n (b) the proceedings in relation to the application have failed for want of jurisdiction.\n (3) In this section:\n\n> other review proceedings means proceedings in relation to a services contract:\n\n (a) under a provision of a law of a State or Territory that makes provision as mentioned in paragraph 7(1)(c) and is not affected by the exclusion provisions; or\n (b) under a provision of a law of the Commonwealth, or of a State or Territory, that is specified in regulations made for the purposes of this paragraph.\n\n> Note: Paragraph 7(1)(c) relates to laws that provide for contracts to be void etc. on an unfairness ground.\n\n#### 15 Powers of Court\n\n (1) In reviewing a services contract in relation to which an application has been made under subsection 12(1), the Court may have regard to:\n (a) the relative strengths of the bargaining positions of the parties to the contract and, if applicable, any persons acting on behalf of the parties; and\n (b) whether any undue influence or pressure was exerted on, or any unfair tactics were used against, a party to the contract; and\n (c) whether the contract provides total remuneration that is, or is likely to be, less than that of an employee performing similar work; and\n (d) any other matter that the Court thinks is relevant.\n (3) If the Court forms the opinion that a ground referred to in subsection 12(1) is established in relation to the whole or a part of the services contract, the Court must record its opinion, stating whether the opinion relates to the whole or a specified part of the contract.\n (4) The Court may form the opinion that a ground referred to in subsection 12(1) is established in relation to the whole or a part of the services contract even if the ground was not canvassed in the application.\n\n> Note: An alternative dispute resolution process (for example, mediation) may be used to deal with some or all of the matters in dispute in a proceeding under this Part: see Part 5 of Chapter 4 of the Federal Circuit and Family Court of Australia Act 2021 and section 53A of the Federal Court of Australia Act 1976.\n\n#### 16 Orders that Court may make\n\n (1) If the Court records an opinion under section 15 in relation to a services contract, the Court may make one or more of the following orders in relation to the opinion:\n (a) an order setting aside the whole or a part of the contract;\n (b) an order varying the contract.\n (2) An order may only be made for the purpose of placing the parties to the services contract as nearly as practicable on such a footing that the ground on which the opinion is based no longer applies.\n (3) If an application under this Part is pending, the Court may make an interim order if it considers it is desirable to do so to preserve the position of a party to the services contract.\n (4) An order takes effect on the date of the order or a later date specified in the order.\n (5) A party to the services contract may apply to the Court to enforce an order by injunction or otherwise as the Court considers appropriate.\n (6) Subject to section 14, this section does not limit any other rights of a party to the services contract.\n\n> Note 1: The rights of a party to a services contract may be affected by the exclusion provisions.\n\n> Note 2: An appeal may be brought to the Federal Court of Australia from a judgment of the Federal Circuit and Family Court of Australia (Division 2): see section 24 of the Federal Court of Australia Act 1976.\n\n#### 17 Costs only where proceeding instituted vexatiously\n\n (1) A party (the first party) to a proceeding (including an appeal) in a matter arising under this Part must not be ordered to pay costs incurred by any other party to the proceeding unless the first party instituted the proceeding vexatiously or without reasonable cause.\n (2) Despite subsection (1), if a court hearing a proceeding (including an appeal) in a matter arising under this Part is satisfied that a party (the first party) to the proceeding has, by unreasonable act or omission, caused another party to the proceeding to incur costs in connection with the proceeding, the court may order the first party to pay some or all of those costs.\n (3) In this section:\n\n> costs includes all legal and professional costs and disbursements, and expenses of witnesses.\n\n## Part 5—Transitional provisions\n\n### Division 1—State and Territory laws other than unfair contracts laws\n\n#### 31 Definitions\n\n In this Division:\n\n> continuation contract, in relation to a services contract, has the meaning given by section 32.\n\n> contract period means the period in relation to which a contract has effect.\n\n> covers: a reform opt‑in agreement covers a services contract as described in subsection 33(3).\n\n> date of effect, in relation to a reform opt‑in agreement, has the meaning given by subsection 33(2).\n\n> pre‑reform commencement contract means a services contract that was entered into before the reform commencement.\n\n> reform commencement means the commencement of Part 2.\n\n> reform opt‑in agreement has the meaning given by subsection 33(1).\n\n> related continuation contract has the meaning given by subsection 32(3).\n\n> State or Territory contractor laws means the laws of the States and Territories, as in force from time to time after the reform commencement, to the extent that they would, apart from this Division, be affected by the exclusion provisions, but not including laws to the extent that they make provision as mentioned in paragraph 7(1)(c).\n\n> Note: Paragraph 7(1)(c) relates to laws that provide for services contracts to be void etc. on an unfairness ground. Transitional provisions relating to the effect of Part 2 on such laws are contained in Division 2 of this Part.\n\n#### 32 Continuation contracts and related continuation contracts\n\n Continuation contracts\n (1) A services contract (the later contract) is a continuation contract in relation to a pre‑reform commencement contract if:\n (a) the parties to the later contract are the same as the parties to the pre‑reform commencement contract; and\n (b) one or more of the following subparagraphs is satisfied in relation to the later contract:\n (i) the later contract is entered into pursuant to an option or similar right contained in the pre‑reform commencement contract, or contained in another contract that is a continuation contract in relation to the pre‑reform commencement contract;\n (ii) the contract period of the later contract immediately follows the contract period of the pre‑reform commencement contract;\n (iii) the contract period of the later contract immediately follows the contract period of another contract that is a continuation contract in relation to the pre‑reform commencement contract; and\n (c) the later contract relates to the performance of the same kind of work as the pre‑reform commencement contract.\n\n> Note 1: See also subsection 35(7), under which a contract may be taken to be a continuation contract.\n\n> Note 2: For how this section applies in a transfer of business situation, see section 36.\n\n (2) For the purposes of subparagraphs (1)(b)(ii) and (iii), the contract period of a services contract is taken to immediately follow the contract period of another services contract even if those periods are interrupted by an interval, but only if that interval:\n (a) is consistent with a regular pattern of contracting between the parties to the contracts; or\n (b) is covered by regulations made for the purposes of this paragraph.\n Related continuation contracts\n (3) A services contract is a related continuation contract in relation to another services contract if:\n (a) the following subparagraphs are satisfied:\n (i) the other services contract is a pre‑reform commencement contract;\n (ii) the first‑mentioned services contract is a continuation contract in relation to the other contract; or\n (b) the 2 services contracts are continuation contracts in relation to the same pre‑reform commencement contract.\n\n#### 33 Reform opt‑in agreement\n\n (1) A reform opt‑in agreement is an agreement in writing, signed by the parties to the agreement, to one or more of the following effects:\n (a) that the parties no longer want the State or Territory contractor laws to apply to a specified services contract, or to any related continuation contracts in relation to the specified contract, that the parties have entered into or may enter into;\n (b) that the parties no longer want the State or Territory contractor laws to apply to any services contracts of a specified class, or to any related continuation contracts in relation to any contracts in the specified class, that the parties have entered into or may enter into;\n (c) that the parties no longer want the State or Territory contractor laws to apply to any services contracts that they have entered into or may enter into.\n\n> Note: The agreement must relate to the whole body of the State or Territory contractor laws (rather than just to some of those laws).\n\n (2) A reform opt‑in agreement’s date of effect is:\n (a) the date on which the agreement is entered into; or\n (b) if a later date is specified in the agreement as its date of effect—that later date.\n (3) A reform opt‑in agreement covers a services contract if the agreement is to the effect that the parties to the agreement no longer want the State or Territory contractor laws to apply to the contract (whether the parties’ intent is expressed as mentioned in paragraph (1)(a), (b) or (c)).\n (4) A purported revocation or variation of a reform opt‑in agreement is of no effect for the purposes of this Division.\n\n#### 34 Prohibited conduct in relation to reform opt‑in agreements\n\n (1) A person must not:\n (a) take or threaten to take any action; or\n (b) refrain, or threaten to refrain, from taking any action;\n with intent to coerce another person (the targeted person) to enter into, or to not enter into, a reform opt‑in agreement.\n (2) A person must not knowingly make a false statement with intent to persuade or influence another person (the targeted person) to enter into, or to not enter into, a reform opt‑in agreement.\n (3) If a person breaches subsection (1) or (2), a penalty may be imposed by the Court.\n (4) The maximum penalty that may be imposed under subsection (3) for a breach of subsection (1) or (2) is:\n (a) 300 penalty units for a body corporate; or\n (b) 60 penalty units in other cases.\n (5) An application to the Court for the imposition of a penalty under subsection (3) may be made by:\n (a) a Fair Work Inspector; or\n (b) the targeted person; or\n (c) an organisation of employees, or an organisation or association of employers, of which the targeted person is a member, if it is acting with the written consent of the targeted person.\n (6) A penalty imposed under subsection (3) is payable to the Commonwealth, or to some other person if the Court so directs.\n (7) Division 4 of Part 4‑1 of the Fair Work Act 2009 has effect as if a breach of subsection (1) or (2) were a contravention of a civil remedy provision within the meaning of that Division.\n\n#### 35 Continued application of the State or Territory contractor laws to certain services contracts\n\n Services contracts to which this section applies\n (1) This section applies to a services contract (the relevant contract) if:\n (a) the relevant contract:\n (i) is a pre‑reform commencement contract; or\n (ii) is a continuation contract in relation to a pre‑reform commencement contract; and\n (b) some or all of the contract period of the relevant contract occurs after the reform commencement; and\n (c) the contractor law test is satisfied in relation to the relevant contract (see subsection (2)).\n (2) The contractor law test is satisfied in relation to the relevant contract if one of the following paragraphs applies to the contract that, as between the relevant contract and its related continuation contracts (if any), is the contract (the test contract) that was entered into both before the reform commencement and closest to the reform commencement:\n (a) if the contract period of the test contract did not start before the reform commencement—one or more of the State or Territory contractor laws would have applied before the reform commencement in relation to the test contract if its contract period had started when it was entered into;\n (b) if the contract period of the test contract started before the reform commencement—one or more of the State or Territory contractor laws applied before the reform commencement in relation to the test contract.\n (3) For the purpose of subsection (2), a reference to the State or Territory contractor laws, in relation to a time before the reform commencement, is a reference to laws that would have been State or Territory contractor laws if:\n (a) this Division had been in force at that time; and\n (b) the reform commencement had occurred before that time.\n Exclusion provisions do not apply\n (4) Subject to subsection (5), the exclusion provisions do not apply in relation to the State or Territory contractor laws in relation to so much of the contract period of the relevant contract as occurs after the reform commencement and before the first of the following days (the transition day):\n (a) the date of effect of a reform opt‑in agreement (if any) that covers the contract;\n (b) the first day after the end of the period of 3 years that started on the reform commencement.\n\n> Note: If the exclusion provisions do not apply, the State or Territory contractor laws will continue to apply.\n\n (5) The regulations may provide that subsection (4) does not affect the application of the exclusion provisions in relation to a specified State or Territory contractor law, either:\n (a) generally; or\n (b) as specified in the regulations.\n What if the contract period ends before the transition day?\n (6) If:\n (a) the contract period of the relevant contract ends before the transition day; and\n (b) there is no further contract between the parties that (disregarding subsection (7)) is a related continuation contract in relation to the relevant contract;\n the consequences that result from the contract period ending (including consequences relating to the fact that there is no further contract as mentioned in paragraph (b)) are as provided by or under the relevant terms of any contract between the parties, the State or Territory contractor laws and any other relevant laws.\n\n> Note: The independent contractor may (for example) have an entitlement under the State or Territory contractor laws to recover an amount on account of accrued entitlements (such as leave), an entitlement to a reinstatement or re‑engagement remedy, or an entitlement to a redundancy payment.\n\n (7) If:\n (a) in a situation to which subsection (6) applies, the independent contractor obtains a remedy that results in his or her reinstatement or re‑engagement, with effect from a time before the transition day; and\n (b) the services contract (the remedy contract) under which he or she is reinstated or re‑engaged would not otherwise be a continuation contract in relation to:\n (i) if subparagraph (1)(a)(i) applies—the relevant contract; or\n (ii) if subparagraph (1)(a)(ii) applies—the pre‑reform commencement contract referred to in that subparagraph;\n the remedy contract is taken to be such a continuation contract.\n What if the contract period does not end before the transition day?\n (8) If the contract period of the relevant contract does not end before the transition day, the contract is to be treated, for the purposes of the State or Territory contractor laws, as if, on the transition day, it had been brought to an end by agreement of the parties (rather than by the unilateral act of one party).\n\n> Note: Because of this subsection, the occurrence of the transition day may trigger an entitlement under a State or Territory contractor law to recover an amount on account of accrued entitlements (such as leave). But the occurrence of the transition day should not trigger an entitlement under such a law to a reinstatement or re‑engagement remedy, or to a redundancy payment, as such remedies are generally not available for the ending of contracts by agreement.\n\n#### 36 How section 35 applies if there is a transfer of business\n\n When this section applies to a post‑transfer contract—general\n (1) Subject to subsection (2), this section applies to a services contract (the post‑transfer contract) if:\n (a) under a services contract (the first contract) between an independent contractor and another person (the former principal), the independent contractor performs or performed work of a particular kind for a business; and\n (b) the first contract:\n (i) is a pre‑reform commencement contract; or\n (ii) is a continuation contract in relation to a pre‑reform commencement contract; and\n (c) after the reform commencement, there is a transfer (by whatever means, and however described) of all or part of the business; and\n (d) the post‑transfer contract is a services contract, entered into by the independent contractor with another person, that is for the performance, after the transfer takes effect, of the same kind of work for the business or the transferred part of the business.\n Section does not apply to a post‑transfer contract if reform opt‑in agreement has already taken effect\n (2) This section does not apply to the post‑transfer contract if:\n (a) a reform opt‑in agreement covered the first contract, or covered another contract that is a continuation contract in relation to:\n (i) if subparagraph (1)(b)(i) applies—the first contract; or\n (ii) if subparagraph (1)(b)(ii) applies—the pre‑reform commencement contract referred to in that subparagraph; and\n (b) the reform opt‑in agreement’s date of effect is before the transfer takes effect.\n\n> Note: If this subsection applies, subsection (3) will not apply and so the post‑transfer contract cannot be a continuation contract.\n\n If section applies, post‑transfer contract may be continuation contract (even though parties are not the same)\n (3) If this section applies to the post‑transfer contract, then, in determining for the purpose of section 35 whether the post‑transfer contract is a continuation contract in relation to:\n (a) if subparagraph (1)(b)(i) applies—the first contract; or\n (b) if subparagraph (1)(b)(ii) applies—the pre‑reform commencement contract referred to in that subparagraph;\n the following provisions have effect:\n (c) the parties to the post‑transfer contract are taken to be the same as the parties to the contract referred to in whichever of paragraphs (a) and (b) of this subsection applies;\n (d) subsection 32(2) has effect as if that subsection also contained a paragraph referring to the interval being because of the transfer of the business or the part of the business.\n\n#### 37 Application of the State or Territory contractor laws in relation to pre‑reform commencement matters not affected by exclusion provisions\n\n The exclusion provisions do not affect the application of the State or Territory contractor laws in relation to matters that occurred before the reform commencement.\n\n### Division 2—Unfair contracts laws\n\n#### 38 Definition\n\n In this Division:\n\n> reform commencement means the commencement of Part 2.\n\n#### 39 New applications relating to unfair contracts\n\n An application in relation to a services contract may be made under Part 3 even if the contract was entered into before the reform commencement.\n\n#### 40 Applications under the Workplace Relations Act 1996 in progress at the reform commencement\n\n (1) This section applies to an application in relation to a contract for services that was made before the reform commencement under section 832 of the Workplace Relations Act 1996 if the proceeding (including any appeal to a court in relation to the proceeding) in relation to the application was not finally determined before the reform commencement.\n (2) Despite the repeal of sections 832, 833 and 834 of the Workplace Relations Act 1996 by the Workplace Relations Legislation Amendment (Independent Contractors) Act 2006, those sections continue to apply to the application after the reform commencement as if they had not been repealed.\n\n#### 41 Applications under an excluded State or Territory law in progress at the reform commencement\n\n (1) This section applies to a proceeding in relation to a contract for services that was commenced before the reform commencement under a law of a State or Territory that makes provision as mentioned in paragraph 7(1)(c) if the proceeding (including any appeal) was not finally determined before the reform commencement.\n (2) The exclusion provisions do not apply in relation to the law of the State or Territory (including any law relating to appeals) to the extent that it relates to the proceeding (including any appeal).\n\n## Part 6—Regulations\n\n#### 42 Regulations may make provision for transitional matters\n\n (1) The regulations may make provision for matters of a transitional, saving or application nature arising out of, or relating to, the provisions of this Act or of the Workplace Relations Legislation Amendment (Independent Contractors) Act 2006.\n (2) Without limiting subsection (1), regulations made for the purpose of that subsection may prescribe modifications of Division 1 of Part 5.\n (3) Subsection 12(2) (retrospective application of legislative instruments) of the Legislation Act 2003 does not apply to a regulation made for the purposes of subsection (1).\n (4) Subsection 12(1A) (retrospective commencement of legislative instruments) of the Legislation Act 2003 does not apply to a regulation made for the purposes of subsection (1) that creates, modifies or otherwise affects a provision that makes a person liable to an offence or civil penalty.\n\n#### 43 Power to make regulations\n\n The Governor‑General may make regulations prescribing matters:\n (a) required or permitted by this Act to be prescribed; or\n (b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.","sortOrder":22},{"sectionNumber":"31","sectionType":"section","heading":"Definitions","content":"#### 31 Definitions\n\n In this Division:\n\n> continuation contract, in relation to a services contract, has the meaning given by section 32.\n\n> contract period means the period in relation to which a contract has effect.\n\n> covers: a reform opt‑in agreement covers a services contract as described in subsection 33(3).\n\n> date of effect, in relation to a reform opt‑in agreement, has the meaning given by subsection 33(2).\n\n> pre‑reform commencement contract means a services contract that was entered into before the reform commencement.\n\n> reform commencement means the commencement of Part 2.\n\n> reform opt‑in agreement has the meaning given by subsection 33(1).\n\n> related continuation contract has the meaning given by subsection 32(3).\n\n> State or Territory contractor laws means the laws of the States and Territories, as in force from time to time after the reform commencement, to the extent that they would, apart from this Division, be affected by the exclusion provisions, but not including laws to the extent that they make provision as mentioned in paragraph 7(1)(c).\n\n> Note: Paragraph 7(1)(c) relates to laws that provide for services contracts to be void etc. on an unfairness ground. Transitional provisions relating to the effect of Part 2 on such laws are contained in Division 2 of this Part.","sortOrder":23},{"sectionNumber":"32","sectionType":"section","heading":"Continuation contracts and related continuation contracts","content":"#### 32 Continuation contracts and related continuation contracts\n\n Continuation contracts\n (1) A services contract (the later contract) is a continuation contract in relation to a pre‑reform commencement contract if:\n (a) the parties to the later contract are the same as the parties to the pre‑reform commencement contract; and\n (b) one or more of the following subparagraphs is satisfied in relation to the later contract:\n (i) the later contract is entered into pursuant to an option or similar right contained in the pre‑reform commencement contract, or contained in another contract that is a continuation contract in relation to the pre‑reform commencement contract;\n (ii) the contract period of the later contract immediately follows the contract period of the pre‑reform commencement contract;\n (iii) the contract period of the later contract immediately follows the contract period of another contract that is a continuation contract in relation to the pre‑reform commencement contract; and\n (c) the later contract relates to the performance of the same kind of work as the pre‑reform commencement contract.\n\n> Note 1: See also subsection 35(7), under which a contract may be taken to be a continuation contract.\n\n> Note 2: For how this section applies in a transfer of business situation, see section 36.\n\n (2) For the purposes of subparagraphs (1)(b)(ii) and (iii), the contract period of a services contract is taken to immediately follow the contract period of another services contract even if those periods are interrupted by an interval, but only if that interval:\n (a) is consistent with a regular pattern of contracting between the parties to the contracts; or\n (b) is covered by regulations made for the purposes of this paragraph.\n Related continuation contracts\n (3) A services contract is a related continuation contract in relation to another services contract if:\n (a) the following subparagraphs are satisfied:\n (i) the other services contract is a pre‑reform commencement contract;\n (ii) the first‑mentioned services contract is a continuation contract in relation to the other contract; or\n (b) the 2 services contracts are continuation contracts in relation to the same pre‑reform commencement contract.","sortOrder":24},{"sectionNumber":"33","sectionType":"section","heading":"Reform opt‑in agreement","content":"#### 33 Reform opt‑in agreement\n\n (1) A reform opt‑in agreement is an agreement in writing, signed by the parties to the agreement, to one or more of the following effects:\n (a) that the parties no longer want the State or Territory contractor laws to apply to a specified services contract, or to any related continuation contracts in relation to the specified contract, that the parties have entered into or may enter into;\n (b) that the parties no longer want the State or Territory contractor laws to apply to any services contracts of a specified class, or to any related continuation contracts in relation to any contracts in the specified class, that the parties have entered into or may enter into;\n (c) that the parties no longer want the State or Territory contractor laws to apply to any services contracts that they have entered into or may enter into.\n\n> Note: The agreement must relate to the whole body of the State or Territory contractor laws (rather than just to some of those laws).\n\n (2) A reform opt‑in agreement’s date of effect is:\n (a) the date on which the agreement is entered into; or\n (b) if a later date is specified in the agreement as its date of effect—that later date.\n (3) A reform opt‑in agreement covers a services contract if the agreement is to the effect that the parties to the agreement no longer want the State or Territory contractor laws to apply to the contract (whether the parties’ intent is expressed as mentioned in paragraph (1)(a), (b) or (c)).\n (4) A purported revocation or variation of a reform opt‑in agreement is of no effect for the purposes of this Division.","sortOrder":25},{"sectionNumber":"34","sectionType":"section","heading":"Prohibited conduct in relation to reform opt‑in agreements","content":"#### 34 Prohibited conduct in relation to reform opt‑in agreements\n\n (1) A person must not:\n (a) take or threaten to take any action; or\n (b) refrain, or threaten to refrain, from taking any action;\n with intent to coerce another person (the targeted person) to enter into, or to not enter into, a reform opt‑in agreement.\n (2) A person must not knowingly make a false statement with intent to persuade or influence another person (the targeted person) to enter into, or to not enter into, a reform opt‑in agreement.\n (3) If a person breaches subsection (1) or (2), a penalty may be imposed by the Court.\n (4) The maximum penalty that may be imposed under subsection (3) for a breach of subsection (1) or (2) is:\n (a) 300 penalty units for a body corporate; or\n (b) 60 penalty units in other cases.\n (5) An application to the Court for the imposition of a penalty under subsection (3) may be made by:\n (a) a Fair Work Inspector; or\n (b) the targeted person; or\n (c) an organisation of employees, or an organisation or association of employers, of which the targeted person is a member, if it is acting with the written consent of the targeted person.\n (6) A penalty imposed under subsection (3) is payable to the Commonwealth, or to some other person if the Court so directs.\n (7) Division 4 of Part 4‑1 of the Fair Work Act 2009 has effect as if a breach of subsection (1) or (2) were a contravention of a civil remedy provision within the meaning of that Division.","sortOrder":26},{"sectionNumber":"35","sectionType":"section","heading":"Continued application of the State or Territory contractor laws to certain services contracts","content":"#### 35 Continued application of the State or Territory contractor laws to certain services contracts\n\n Services contracts to which this section applies\n (1) This section applies to a services contract (the relevant contract) if:\n (a) the relevant contract:\n (i) is a pre‑reform commencement contract; or\n (ii) is a continuation contract in relation to a pre‑reform commencement contract; and\n (b) some or all of the contract period of the relevant contract occurs after the reform commencement; and\n (c) the contractor law test is satisfied in relation to the relevant contract (see subsection (2)).\n (2) The contractor law test is satisfied in relation to the relevant contract if one of the following paragraphs applies to the contract that, as between the relevant contract and its related continuation contracts (if any), is the contract (the test contract) that was entered into both before the reform commencement and closest to the reform commencement:\n (a) if the contract period of the test contract did not start before the reform commencement—one or more of the State or Territory contractor laws would have applied before the reform commencement in relation to the test contract if its contract period had started when it was entered into;\n (b) if the contract period of the test contract started before the reform commencement—one or more of the State or Territory contractor laws applied before the reform commencement in relation to the test contract.\n (3) For the purpose of subsection (2), a reference to the State or Territory contractor laws, in relation to a time before the reform commencement, is a reference to laws that would have been State or Territory contractor laws if:\n (a) this Division had been in force at that time; and\n (b) the reform commencement had occurred before that time.\n Exclusion provisions do not apply\n (4) Subject to subsection (5), the exclusion provisions do not apply in relation to the State or Territory contractor laws in relation to so much of the contract period of the relevant contract as occurs after the reform commencement and before the first of the following days (the transition day):\n (a) the date of effect of a reform opt‑in agreement (if any) that covers the contract;\n (b) the first day after the end of the period of 3 years that started on the reform commencement.\n\n> Note: If the exclusion provisions do not apply, the State or Territory contractor laws will continue to apply.\n\n (5) The regulations may provide that subsection (4) does not affect the application of the exclusion provisions in relation to a specified State or Territory contractor law, either:\n (a) generally; or\n (b) as specified in the regulations.\n What if the contract period ends before the transition day?\n (6) If:\n (a) the contract period of the relevant contract ends before the transition day; and\n (b) there is no further contract between the parties that (disregarding subsection (7)) is a related continuation contract in relation to the relevant contract;\n the consequences that result from the contract period ending (including consequences relating to the fact that there is no further contract as mentioned in paragraph (b)) are as provided by or under the relevant terms of any contract between the parties, the State or Territory contractor laws and any other relevant laws.\n\n> Note: The independent contractor may (for example) have an entitlement under the State or Territory contractor laws to recover an amount on account of accrued entitlements (such as leave), an entitlement to a reinstatement or re‑engagement remedy, or an entitlement to a redundancy payment.\n\n (7) If:\n (a) in a situation to which subsection (6) applies, the independent contractor obtains a remedy that results in his or her reinstatement or re‑engagement, with effect from a time before the transition day; and\n (b) the services contract (the remedy contract) under which he or she is reinstated or re‑engaged would not otherwise be a continuation contract in relation to:\n (i) if subparagraph (1)(a)(i) applies—the relevant contract; or\n (ii) if subparagraph (1)(a)(ii) applies—the pre‑reform commencement contract referred to in that subparagraph;\n the remedy contract is taken to be such a continuation contract.\n What if the contract period does not end before the transition day?\n (8) If the contract period of the relevant contract does not end before the transition day, the contract is to be treated, for the purposes of the State or Territory contractor laws, as if, on the transition day, it had been brought to an end by agreement of the parties (rather than by the unilateral act of one party).\n\n> Note: Because of this subsection, the occurrence of the transition day may trigger an entitlement under a State or Territory contractor law to recover an amount on account of accrued entitlements (such as leave). But the occurrence of the transition day should not trigger an entitlement under such a law to a reinstatement or re‑engagement remedy, or to a redundancy payment, as such remedies are generally not available for the ending of contracts by agreement.","sortOrder":27},{"sectionNumber":"36","sectionType":"section","heading":"How section 35 applies if there is a transfer of business","content":"#### 36 How section 35 applies if there is a transfer of business\n\n When this section applies to a post‑transfer contract—general\n (1) Subject to subsection (2), this section applies to a services contract (the post‑transfer contract) if:\n (a) under a services contract (the first contract) between an independent contractor and another person (the former principal), the independent contractor performs or performed work of a particular kind for a business; and\n (b) the first contract:\n (i) is a pre‑reform commencement contract; or\n (ii) is a continuation contract in relation to a pre‑reform commencement contract; and\n (c) after the reform commencement, there is a transfer (by whatever means, and however described) of all or part of the business; and\n (d) the post‑transfer contract is a services contract, entered into by the independent contractor with another person, that is for the performance, after the transfer takes effect, of the same kind of work for the business or the transferred part of the business.\n Section does not apply to a post‑transfer contract if reform opt‑in agreement has already taken effect\n (2) This section does not apply to the post‑transfer contract if:\n (a) a reform opt‑in agreement covered the first contract, or covered another contract that is a continuation contract in relation to:\n (i) if subparagraph (1)(b)(i) applies—the first contract; or\n (ii) if subparagraph (1)(b)(ii) applies—the pre‑reform commencement contract referred to in that subparagraph; and\n (b) the reform opt‑in agreement’s date of effect is before the transfer takes effect.\n\n> Note: If this subsection applies, subsection (3) will not apply and so the post‑transfer contract cannot be a continuation contract.\n\n If section applies, post‑transfer contract may be continuation contract (even though parties are not the same)\n (3) If this section applies to the post‑transfer contract, then, in determining for the purpose of section 35 whether the post‑transfer contract is a continuation contract in relation to:\n (a) if subparagraph (1)(b)(i) applies—the first contract; or\n (b) if subparagraph (1)(b)(ii) applies—the pre‑reform commencement contract referred to in that subparagraph;\n the following provisions have effect:\n (c) the parties to the post‑transfer contract are taken to be the same as the parties to the contract referred to in whichever of paragraphs (a) and (b) of this subsection applies;\n (d) subsection 32(2) has effect as if that subsection also contained a paragraph referring to the interval being because of the transfer of the business or the part of the business.","sortOrder":28},{"sectionNumber":"37","sectionType":"section","heading":"Application of the State or Territory contractor laws in relation to pre‑reform commencement matters not affected by exclusion provisions","content":"#### 37 Application of the State or Territory contractor laws in relation to pre‑reform commencement matters not affected by exclusion provisions\n\n The exclusion provisions do not affect the application of the State or Territory contractor laws in relation to matters that occurred before the reform commencement.","sortOrder":29},{"sectionNumber":"Division 2","sectionType":"division","heading":"Unfair contracts laws","content":"An Act relating to independent contractors, and for related purposes\n\n## Part 1—Preliminary\n\n#### 1 Short title\n\n This Act may be cited as the Independent Contractors Act 2006.\n\n#### 2 Commencement\n\n (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.\n\n```html\n

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

1. Sections 1 and 2 and anything in this Act not elsewhere covered by this table

The day on which this Act receives the Royal Assent.

11 December 2006

2. Sections 3 to 43

A single day to be fixed by Proclamation.

However, if any of the provision(s) do not commence within the period of 6 months beginning on the day on which this Act receives the Royal Assent, they commence on the first day after the end of that period.

1 March 2007

(see F2007L00412)

\n```\n\n> Note: This table relates only to the provisions of this Act as originally passed by the Parliament and assented to. It will not be expanded to deal with provisions inserted in this Act after assent.\n\n (2) Column 3 of the table contains additional information that is not part of this Act. Information in this column may be added to or edited in any published version of this Act.\n\n#### 3 Objects of this Act\n\n (1) The principal objects of this Act are:\n (a) to protect the freedom of independent contractors to enter into services contracts; and\n (b) to recognise independent contracting as a legitimate form of work arrangement that is primarily commercial; and\n (c) to prevent interference with the terms of genuine independent contracting arrangements.\n (2) The Act achieves these objects, principally, by providing for the rights, entitlements, obligations and liabilities of parties to services contracts to be governed by the terms of those contracts, subject to:\n (a) the rules of common law and equity as applying in relation to those contracts; and\n (b) the laws of the Commonwealth as applying in relation to those contracts; and\n (c) the laws of the States and Territories as applying in relation to those contracts, other (in general) than any such laws that confer or impose rights, entitlements, obligations or liabilities of a kind more commonly associated with employment relationships.\n\n#### 4 Definitions\n\n In this Act:\n\n> Commonwealth authority means:\n\n (a) a body corporate established for a public purpose by or under a law of the Commonwealth; or\n (b) a body corporate:\n (i) incorporated under a law of the Commonwealth or a State or Territory; and\n (ii) in which the Commonwealth has a controlling interest.\n\n> constitutional corporation means a corporation to which paragraph 51(xx) of the Constitution applies.\n\n> Court means the Federal Court of Australia or the Federal Circuit and Family Court of Australia (Division 2).\n\n> exclusion provisions means subsections 7(1) and 10(1).\n\n> Fair Work Inspector has the same meaning as in the Fair Work Act 2009.\n\n> independent contractor is not limited to a natural person.\n\n> organisation means an organisation that is registered or an association that is recognised under the Fair Work (Registered Organisations) Act 2009.\n\n> services contract has the meaning given by section 5.\n\n#### 5 Services contract\n\n General meaning\n (1) A services contract is a contract for services:\n (a) to which an independent contractor is a party; and\n (b) that relates to the performance of work by the independent contractor; and\n (c) that has the requisite constitutional connection specified in subsection (2).\n\n> Note: Conditions or collateral arrangements relating to a services contract may be taken to be part of the services contract: see subsection (4).\n\n The requisite constitutional connection\n (2) A contract for services has the requisite constitutional connection if:\n (a) at least one party to the contract is:\n (i) a constitutional corporation; or\n (ii) the Commonwealth or a Commonwealth authority; or\n (iii) a body corporate incorporated in a Territory in Australia; or\n (b) one or more of the following subparagraphs is satisfied:\n (i) the work concerned is wholly or principally to be performed in a Territory in Australia;\n (ii) the contract was entered into in a Territory in Australia;\n (iii) at least one party to the contract is a natural person who is resident in, or a body corporate that has its principal place of business in, a Territory in Australia.\n (3) Without limiting its effect apart from this subsection, subparagraph (2)(a)(i) also has the effect it would have if the reference to a constitutional corporation were, by express provision, confined to a constitutional corporation that has entered into the contract for the purposes of the business of the corporation.\n Conditions and collateral arrangements\n (4) A condition or collateral arrangement that relates to a services contract is taken to be part of that services contract if, were the condition or arrangement itself a contract for services, it would have the requisite constitutional connection.\n\n#### 5A Rules may modify application of this Act in Norfolk Island\n\n (1) The Minister may, by legislative instrument, make rules prescribing modifications of this Act or the regulations for their application in relation to Norfolk Island.\n (2) To avoid doubt, the rules may not do the following:\n (a) create an offence or civil penalty;\n (b) provide powers of:\n (i) arrest or detention; or\n (ii) entry, search or seizure;\n (c) impose a tax;\n (d) set an amount to be appropriated from the Consolidated Revenue Fund under an appropriation in this Act;\n (e) directly amend the text of this Act or the regulations.\n (3) If the rules prescribe modifications of this Act or the regulations for their application in relation to Norfolk Island, then this Act or the regulations have effect as so modified in relation to Norfolk Island.\n\n> Note: This Act and the regulations would, in the absence of any such rules, apply in relation to Norfolk Island in the same way as they apply in relation to the rest of Australia.\n\n## Part 2—Exclusion of certain State and Territory laws\n\n#### 6 Definitions\n\n In this Part:\n\n> officer, of a body corporate, has the same meaning as in the Corporations Act 2001.\n\n> party, in relation to a services contract to which a body corporate is a party, includes a person who is an officer of the body corporate.\n\n> State or Territory industrial law has the same meaning as in the Fair Work Act 2009.\n\n#### 7 Exclusion of certain State and Territory laws\n\n (1) Subject to subsection (2), the rights, entitlements, obligations and liabilities of a party to a services contract are not affected by a law of a State or Territory to the extent that the law would otherwise do one or more of the following:\n (a) take or deem a party to a services contract to be an employer or employee, or otherwise treat a party to a services contract as if the party were an employer or employee, for the purposes of a law that relates to one or more workplace relations matters (or provide a means for a party to the contract to be so taken, deemed or treated);\n (b) confer or impose rights, entitlements, obligations or liabilities on a party to a services contract in relation to matters that, in an employment relationship, would be workplace relations matters (or provide a means for rights, entitlements, obligations or liabilities in relation to such matters to be conferred or imposed on a party to a services contract);\n (c) without limiting paragraphs (a) and (b)—expressly provide for a court, commission or tribunal to do any of the following in relation to a services contract on an unfairness ground:\n (i) make an order or determination (however described) setting aside, or declaring to be void or otherwise unenforceable, all or part of the contract;\n (ii) make an order or determination (however described) amending or varying all or part of the contract.\n\n> Note 1: For the meaning of workplace relations matter, see section 8.\n\n> Note 2: For the meaning of unfairness ground, see section 9.\n\n> Note 3: Division 1 of Part 5 provides for a transitional period during which the State and Territory laws (other than laws that provide as mentioned in paragraph (1)(c)) may continue to apply despite this subsection.\n\n (2) Subsection (1) does not apply in relation to:\n (a) a law of a State or Territory, to the extent that the law deals with matters relating to outworkers (including entry of a representative of a trade union to premises for a purpose connected with outworkers), other than matters mentioned in paragraph (1)(c); or\n (b) any of the following laws:\n (i) Chapter 6 of the Industrial Relations Act 1996 of New South Wales (and any other provision of that Act to the extent that it relates to, or has effect for the purposes of, a provision of Chapter 6);\n (ii) the Owner Drivers and Forestry Contractors Act 2005 of Victoria; or\n (c) a law of a State or Territory that is specified in regulations made for the purposes of this paragraph, to the extent that the law is so specified.\n\n#### 8 What are workplace relations matters\n\n (1) Subject to subsection (2), workplace relations matter means any of the following matters:\n (a) remuneration, allowances or other amounts payable to employees;\n (b) leave entitlements of employees;\n (c) hours of work of employees;\n (d) enforcing or terminating contracts of employment;\n (e) making, enforcing or terminating agreements (not being contracts of employment) determining terms and conditions of employment;\n (f) disputes between employees and employers, or the resolution of such disputes;\n (g) industrial action by employees or employers;\n (h) any other matter that is substantially the same as a matter that relates to employees or employers and that is dealt with by or under:\n (i) the Fair Work Act 2009; or\n (ia) the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009; or\n (ii) a State or Territory industrial law;\n unless the matter is specified in regulations made for the purposes of this paragraph;\n (i) any other matter specified in regulations made for the purposes of this paragraph.\n (2) None of the following is a workplace relations matter:\n (a) prevention of discrimination or promotion of EEO, but only if the State or Territory law concerned is neither a State or Territory industrial law nor contained in such a law;\n (b) superannuation;\n (c) workers compensation;\n (d) occupational health and safety (including entry of a representative of a trade union for a purpose connected with occupational health and safety);\n (e) child labour;\n (f) the observance of a public holiday, except the rate of payment of an employee for the public holiday;\n (g) deductions from wages or salaries;\n (h) industrial action affecting essential services;\n (i) attendance for service on a jury;\n (j) professional or trade regulation;\n (k) consumer protection;\n (l) taxation;\n (m) any other matter specified in regulations made for the purposes of this paragraph.\n\n#### 9 What is an unfairness ground\n\n (1) Subject to subsection (2), each of the following grounds is an unfairness ground in relation to a services contract:\n (a) the contract is unfair;\n (b) the contract is harsh or unconscionable;\n (c) the contract is unjust;\n (d) the contract is against the public interest;\n (e) the contract is designed to, or does, avoid the provisions of:\n (i) the Fair Work Act 2009; or\n (ia) the Workplace Relations Act 1996, as in force at any time before the WR Act repeal day, or as that Act applies after that day because of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009; or\n (ii) a State or Territory industrial law; or\n (iii) an award, agreement or other instrument made under a law referred to in subparagraph (i), (ia) or (ii);\n (f) the contract provides for remuneration at a rate that is, or is likely to be, less than the rate of remuneration for an employee performing similar work;\n (g) any other ground that is substantially the same as a ground specified in any of paragraphs (a) to (f);\n (h) any other ground specified in regulations made for the purposes of this paragraph.\n (2) A ground specified in subsection (1) is not an unfairness ground in relation to a services contract to the extent that the ground relates to matters that, because of subsection 8(2), are not workplace relations matters.\n (3) In this section:\n\n> WR Act repeal day has the meaning given by Schedule 2 to the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009.\n\n#### 10 Regulations may specify laws that are intended to be excluded\n\n (1) The rights, entitlements, obligations and liabilities of a party to a services contract are not affected by a law of a State or Territory that is specified in regulations made for the purposes of this subsection, to the extent that the law is so specified.\n (2) To avoid doubt, subsection (1) has effect even if a law specified in regulations made under that subsection:\n (a) is a law referred to in paragraph 7(2)(a) or (b); or\n (b) deals with matters that, because of subsection 8(2), are not workplace relations matters.\n\n## Part 3—Unfair contracts\n\n#### 11 Application of Part\n\n (1) This Part applies to a services contract, other than:\n (a) a services contract to the extent that the contract relates to the performance of work by the independent contractor for the private and domestic purposes of another party to the contract; or\n (b) without limiting paragraph (a), a services contract to which an independent contractor that is a body corporate is a party, unless the work to which the contract relates is wholly or mainly performed by:\n (i) a director of the body corporate; or\n (ii) a member of the family of a director of the body corporate.\n (2) In this section:\n\n> director has the same meaning as in the Corporations Act 2001.\n\n#### 12 Court may review services contract\n\n (1) An application may be made to the Court to review a services contract on either or both of the following grounds:\n (a) the contract is unfair;\n (b) the contract is harsh.\n\n> Note: A proceeding pending in the Federal Circuit and Family Court of Australia (Division 2) may be transferred to the Federal Court of Australia: see section 153 of the Federal Circuit and Family Court of Australia Act 2021 and section 32AC of the Federal Court of Australia Act 1976.\n\n (2) An application under subsection (1) may be made only by a party to the services contract.\n (2A) An application must not be made in relation to a services contract unless, in the year the application is made, the sum of the independent contractor’s annual rate of earnings, and such other amounts (if any) worked out in relation to the person in accordance with the regulations made for the purposes of subsection 536ND(2) of the Fair Work Act 2009, is more than the contractor high income threshold within the meaning of the Fair Work Act 2009.\n\n> Note: Division 3 of Part 3A‑5 of the Fair Work Act 2009 sets out when the FWC may order a remedy for an unfair contract term.\n\n (3) In reviewing a services contract, the Court must only have regard to:\n (a) the terms of the contract when it was made; and\n (b) to the extent that this Part allows the Court to consider other matters—other matters as existing at the time when the contract was made.\n (4) For the purposes of this Part, services contract includes a contract to vary a services contract.\n\n> Note: The effect of subsection (4) is that a contract to vary a services contract can be reviewed under this Part, as the contract to vary will itself be a services contract.\n\n#### 13 Limitation on applications for review of services contracts—prescribed circumstances\n\n An application to review a services contract must not be made under subsection 12(1) in the circumstances prescribed by the regulations.\n\n#### 14 Limitation on applications for review of services contracts—other proceedings in progress\n\n (1) An application to review a services contract must not be made under subsection 12(1) if other review proceedings have been commenced in relation to the services contract, unless the other review proceedings:\n (a) have been discontinued by the person who commenced them; or\n (b) have failed for want of jurisdiction.\n (2) A person must not commence other review proceedings in relation to a services contract if an application to review the contract has been made under subsection 12(1), unless:\n (a) the application has been discontinued by the person who made it; or\n (b) the proceedings in relation to the application have failed for want of jurisdiction.\n (3) In this section:\n\n> other review proceedings means proceedings in relation to a services contract:\n\n (a) under a provision of a law of a State or Territory that makes provision as mentioned in paragraph 7(1)(c) and is not affected by the exclusion provisions; or\n (b) under a provision of a law of the Commonwealth, or of a State or Territory, that is specified in regulations made for the purposes of this paragraph.\n\n> Note: Paragraph 7(1)(c) relates to laws that provide for contracts to be void etc. on an unfairness ground.\n\n#### 15 Powers of Court\n\n (1) In reviewing a services contract in relation to which an application has been made under subsection 12(1), the Court may have regard to:\n (a) the relative strengths of the bargaining positions of the parties to the contract and, if applicable, any persons acting on behalf of the parties; and\n (b) whether any undue influence or pressure was exerted on, or any unfair tactics were used against, a party to the contract; and\n (c) whether the contract provides total remuneration that is, or is likely to be, less than that of an employee performing similar work; and\n (d) any other matter that the Court thinks is relevant.\n (3) If the Court forms the opinion that a ground referred to in subsection 12(1) is established in relation to the whole or a part of the services contract, the Court must record its opinion, stating whether the opinion relates to the whole or a specified part of the contract.\n (4) The Court may form the opinion that a ground referred to in subsection 12(1) is established in relation to the whole or a part of the services contract even if the ground was not canvassed in the application.\n\n> Note: An alternative dispute resolution process (for example, mediation) may be used to deal with some or all of the matters in dispute in a proceeding under this Part: see Part 5 of Chapter 4 of the Federal Circuit and Family Court of Australia Act 2021 and section 53A of the Federal Court of Australia Act 1976.\n\n#### 16 Orders that Court may make\n\n (1) If the Court records an opinion under section 15 in relation to a services contract, the Court may make one or more of the following orders in relation to the opinion:\n (a) an order setting aside the whole or a part of the contract;\n (b) an order varying the contract.\n (2) An order may only be made for the purpose of placing the parties to the services contract as nearly as practicable on such a footing that the ground on which the opinion is based no longer applies.\n (3) If an application under this Part is pending, the Court may make an interim order if it considers it is desirable to do so to preserve the position of a party to the services contract.\n (4) An order takes effect on the date of the order or a later date specified in the order.\n (5) A party to the services contract may apply to the Court to enforce an order by injunction or otherwise as the Court considers appropriate.\n (6) Subject to section 14, this section does not limit any other rights of a party to the services contract.\n\n> Note 1: The rights of a party to a services contract may be affected by the exclusion provisions.\n\n> Note 2: An appeal may be brought to the Federal Court of Australia from a judgment of the Federal Circuit and Family Court of Australia (Division 2): see section 24 of the Federal Court of Australia Act 1976.\n\n#### 17 Costs only where proceeding instituted vexatiously\n\n (1) A party (the first party) to a proceeding (including an appeal) in a matter arising under this Part must not be ordered to pay costs incurred by any other party to the proceeding unless the first party instituted the proceeding vexatiously or without reasonable cause.\n (2) Despite subsection (1), if a court hearing a proceeding (including an appeal) in a matter arising under this Part is satisfied that a party (the first party) to the proceeding has, by unreasonable act or omission, caused another party to the proceeding to incur costs in connection with the proceeding, the court may order the first party to pay some or all of those costs.\n (3) In this section:\n\n> costs includes all legal and professional costs and disbursements, and expenses of witnesses.\n\n## Part 5—Transitional provisions\n\n### Division 1—State and Territory laws other than unfair contracts laws\n\n#### 31 Definitions\n\n In this Division:\n\n> continuation contract, in relation to a services contract, has the meaning given by section 32.\n\n> contract period means the period in relation to which a contract has effect.\n\n> covers: a reform opt‑in agreement covers a services contract as described in subsection 33(3).\n\n> date of effect, in relation to a reform opt‑in agreement, has the meaning given by subsection 33(2).\n\n> pre‑reform commencement contract means a services contract that was entered into before the reform commencement.\n\n> reform commencement means the commencement of Part 2.\n\n> reform opt‑in agreement has the meaning given by subsection 33(1).\n\n> related continuation contract has the meaning given by subsection 32(3).\n\n> State or Territory contractor laws means the laws of the States and Territories, as in force from time to time after the reform commencement, to the extent that they would, apart from this Division, be affected by the exclusion provisions, but not including laws to the extent that they make provision as mentioned in paragraph 7(1)(c).\n\n> Note: Paragraph 7(1)(c) relates to laws that provide for services contracts to be void etc. on an unfairness ground. Transitional provisions relating to the effect of Part 2 on such laws are contained in Division 2 of this Part.\n\n#### 32 Continuation contracts and related continuation contracts\n\n Continuation contracts\n (1) A services contract (the later contract) is a continuation contract in relation to a pre‑reform commencement contract if:\n (a) the parties to the later contract are the same as the parties to the pre‑reform commencement contract; and\n (b) one or more of the following subparagraphs is satisfied in relation to the later contract:\n (i) the later contract is entered into pursuant to an option or similar right contained in the pre‑reform commencement contract, or contained in another contract that is a continuation contract in relation to the pre‑reform commencement contract;\n (ii) the contract period of the later contract immediately follows the contract period of the pre‑reform commencement contract;\n (iii) the contract period of the later contract immediately follows the contract period of another contract that is a continuation contract in relation to the pre‑reform commencement contract; and\n (c) the later contract relates to the performance of the same kind of work as the pre‑reform commencement contract.\n\n> Note 1: See also subsection 35(7), under which a contract may be taken to be a continuation contract.\n\n> Note 2: For how this section applies in a transfer of business situation, see section 36.\n\n (2) For the purposes of subparagraphs (1)(b)(ii) and (iii), the contract period of a services contract is taken to immediately follow the contract period of another services contract even if those periods are interrupted by an interval, but only if that interval:\n (a) is consistent with a regular pattern of contracting between the parties to the contracts; or\n (b) is covered by regulations made for the purposes of this paragraph.\n Related continuation contracts\n (3) A services contract is a related continuation contract in relation to another services contract if:\n (a) the following subparagraphs are satisfied:\n (i) the other services contract is a pre‑reform commencement contract;\n (ii) the first‑mentioned services contract is a continuation contract in relation to the other contract; or\n (b) the 2 services contracts are continuation contracts in relation to the same pre‑reform commencement contract.\n\n#### 33 Reform opt‑in agreement\n\n (1) A reform opt‑in agreement is an agreement in writing, signed by the parties to the agreement, to one or more of the following effects:\n (a) that the parties no longer want the State or Territory contractor laws to apply to a specified services contract, or to any related continuation contracts in relation to the specified contract, that the parties have entered into or may enter into;\n (b) that the parties no longer want the State or Territory contractor laws to apply to any services contracts of a specified class, or to any related continuation contracts in relation to any contracts in the specified class, that the parties have entered into or may enter into;\n (c) that the parties no longer want the State or Territory contractor laws to apply to any services contracts that they have entered into or may enter into.\n\n> Note: The agreement must relate to the whole body of the State or Territory contractor laws (rather than just to some of those laws).\n\n (2) A reform opt‑in agreement’s date of effect is:\n (a) the date on which the agreement is entered into; or\n (b) if a later date is specified in the agreement as its date of effect—that later date.\n (3) A reform opt‑in agreement covers a services contract if the agreement is to the effect that the parties to the agreement no longer want the State or Territory contractor laws to apply to the contract (whether the parties’ intent is expressed as mentioned in paragraph (1)(a), (b) or (c)).\n (4) A purported revocation or variation of a reform opt‑in agreement is of no effect for the purposes of this Division.\n\n#### 34 Prohibited conduct in relation to reform opt‑in agreements\n\n (1) A person must not:\n (a) take or threaten to take any action; or\n (b) refrain, or threaten to refrain, from taking any action;\n with intent to coerce another person (the targeted person) to enter into, or to not enter into, a reform opt‑in agreement.\n (2) A person must not knowingly make a false statement with intent to persuade or influence another person (the targeted person) to enter into, or to not enter into, a reform opt‑in agreement.\n (3) If a person breaches subsection (1) or (2), a penalty may be imposed by the Court.\n (4) The maximum penalty that may be imposed under subsection (3) for a breach of subsection (1) or (2) is:\n (a) 300 penalty units for a body corporate; or\n (b) 60 penalty units in other cases.\n (5) An application to the Court for the imposition of a penalty under subsection (3) may be made by:\n (a) a Fair Work Inspector; or\n (b) the targeted person; or\n (c) an organisation of employees, or an organisation or association of employers, of which the targeted person is a member, if it is acting with the written consent of the targeted person.\n (6) A penalty imposed under subsection (3) is payable to the Commonwealth, or to some other person if the Court so directs.\n (7) Division 4 of Part 4‑1 of the Fair Work Act 2009 has effect as if a breach of subsection (1) or (2) were a contravention of a civil remedy provision within the meaning of that Division.\n\n#### 35 Continued application of the State or Territory contractor laws to certain services contracts\n\n Services contracts to which this section applies\n (1) This section applies to a services contract (the relevant contract) if:\n (a) the relevant contract:\n (i) is a pre‑reform commencement contract; or\n (ii) is a continuation contract in relation to a pre‑reform commencement contract; and\n (b) some or all of the contract period of the relevant contract occurs after the reform commencement; and\n (c) the contractor law test is satisfied in relation to the relevant contract (see subsection (2)).\n (2) The contractor law test is satisfied in relation to the relevant contract if one of the following paragraphs applies to the contract that, as between the relevant contract and its related continuation contracts (if any), is the contract (the test contract) that was entered into both before the reform commencement and closest to the reform commencement:\n (a) if the contract period of the test contract did not start before the reform commencement—one or more of the State or Territory contractor laws would have applied before the reform commencement in relation to the test contract if its contract period had started when it was entered into;\n (b) if the contract period of the test contract started before the reform commencement—one or more of the State or Territory contractor laws applied before the reform commencement in relation to the test contract.\n (3) For the purpose of subsection (2), a reference to the State or Territory contractor laws, in relation to a time before the reform commencement, is a reference to laws that would have been State or Territory contractor laws if:\n (a) this Division had been in force at that time; and\n (b) the reform commencement had occurred before that time.\n Exclusion provisions do not apply\n (4) Subject to subsection (5), the exclusion provisions do not apply in relation to the State or Territory contractor laws in relation to so much of the contract period of the relevant contract as occurs after the reform commencement and before the first of the following days (the transition day):\n (a) the date of effect of a reform opt‑in agreement (if any) that covers the contract;\n (b) the first day after the end of the period of 3 years that started on the reform commencement.\n\n> Note: If the exclusion provisions do not apply, the State or Territory contractor laws will continue to apply.\n\n (5) The regulations may provide that subsection (4) does not affect the application of the exclusion provisions in relation to a specified State or Territory contractor law, either:\n (a) generally; or\n (b) as specified in the regulations.\n What if the contract period ends before the transition day?\n (6) If:\n (a) the contract period of the relevant contract ends before the transition day; and\n (b) there is no further contract between the parties that (disregarding subsection (7)) is a related continuation contract in relation to the relevant contract;\n the consequences that result from the contract period ending (including consequences relating to the fact that there is no further contract as mentioned in paragraph (b)) are as provided by or under the relevant terms of any contract between the parties, the State or Territory contractor laws and any other relevant laws.\n\n> Note: The independent contractor may (for example) have an entitlement under the State or Territory contractor laws to recover an amount on account of accrued entitlements (such as leave), an entitlement to a reinstatement or re‑engagement remedy, or an entitlement to a redundancy payment.\n\n (7) If:\n (a) in a situation to which subsection (6) applies, the independent contractor obtains a remedy that results in his or her reinstatement or re‑engagement, with effect from a time before the transition day; and\n (b) the services contract (the remedy contract) under which he or she is reinstated or re‑engaged would not otherwise be a continuation contract in relation to:\n (i) if subparagraph (1)(a)(i) applies—the relevant contract; or\n (ii) if subparagraph (1)(a)(ii) applies—the pre‑reform commencement contract referred to in that subparagraph;\n the remedy contract is taken to be such a continuation contract.\n What if the contract period does not end before the transition day?\n (8) If the contract period of the relevant contract does not end before the transition day, the contract is to be treated, for the purposes of the State or Territory contractor laws, as if, on the transition day, it had been brought to an end by agreement of the parties (rather than by the unilateral act of one party).\n\n> Note: Because of this subsection, the occurrence of the transition day may trigger an entitlement under a State or Territory contractor law to recover an amount on account of accrued entitlements (such as leave). But the occurrence of the transition day should not trigger an entitlement under such a law to a reinstatement or re‑engagement remedy, or to a redundancy payment, as such remedies are generally not available for the ending of contracts by agreement.\n\n#### 36 How section 35 applies if there is a transfer of business\n\n When this section applies to a post‑transfer contract—general\n (1) Subject to subsection (2), this section applies to a services contract (the post‑transfer contract) if:\n (a) under a services contract (the first contract) between an independent contractor and another person (the former principal), the independent contractor performs or performed work of a particular kind for a business; and\n (b) the first contract:\n (i) is a pre‑reform commencement contract; or\n (ii) is a continuation contract in relation to a pre‑reform commencement contract; and\n (c) after the reform commencement, there is a transfer (by whatever means, and however described) of all or part of the business; and\n (d) the post‑transfer contract is a services contract, entered into by the independent contractor with another person, that is for the performance, after the transfer takes effect, of the same kind of work for the business or the transferred part of the business.\n Section does not apply to a post‑transfer contract if reform opt‑in agreement has already taken effect\n (2) This section does not apply to the post‑transfer contract if:\n (a) a reform opt‑in agreement covered the first contract, or covered another contract that is a continuation contract in relation to:\n (i) if subparagraph (1)(b)(i) applies—the first contract; or\n (ii) if subparagraph (1)(b)(ii) applies—the pre‑reform commencement contract referred to in that subparagraph; and\n (b) the reform opt‑in agreement’s date of effect is before the transfer takes effect.\n\n> Note: If this subsection applies, subsection (3) will not apply and so the post‑transfer contract cannot be a continuation contract.\n\n If section applies, post‑transfer contract may be continuation contract (even though parties are not the same)\n (3) If this section applies to the post‑transfer contract, then, in determining for the purpose of section 35 whether the post‑transfer contract is a continuation contract in relation to:\n (a) if subparagraph (1)(b)(i) applies—the first contract; or\n (b) if subparagraph (1)(b)(ii) applies—the pre‑reform commencement contract referred to in that subparagraph;\n the following provisions have effect:\n (c) the parties to the post‑transfer contract are taken to be the same as the parties to the contract referred to in whichever of paragraphs (a) and (b) of this subsection applies;\n (d) subsection 32(2) has effect as if that subsection also contained a paragraph referring to the interval being because of the transfer of the business or the part of the business.\n\n#### 37 Application of the State or Territory contractor laws in relation to pre‑reform commencement matters not affected by exclusion provisions\n\n The exclusion provisions do not affect the application of the State or Territory contractor laws in relation to matters that occurred before the reform commencement.\n\n### Division 2—Unfair contracts laws\n\n#### 38 Definition\n\n In this Division:\n\n> reform commencement means the commencement of Part 2.\n\n#### 39 New applications relating to unfair contracts\n\n An application in relation to a services contract may be made under Part 3 even if the contract was entered into before the reform commencement.\n\n#### 40 Applications under the Workplace Relations Act 1996 in progress at the reform commencement\n\n (1) This section applies to an application in relation to a contract for services that was made before the reform commencement under section 832 of the Workplace Relations Act 1996 if the proceeding (including any appeal to a court in relation to the proceeding) in relation to the application was not finally determined before the reform commencement.\n (2) Despite the repeal of sections 832, 833 and 834 of the Workplace Relations Act 1996 by the Workplace Relations Legislation Amendment (Independent Contractors) Act 2006, those sections continue to apply to the application after the reform commencement as if they had not been repealed.\n\n#### 41 Applications under an excluded State or Territory law in progress at the reform commencement\n\n (1) This section applies to a proceeding in relation to a contract for services that was commenced before the reform commencement under a law of a State or Territory that makes provision as mentioned in paragraph 7(1)(c) if the proceeding (including any appeal) was not finally determined before the reform commencement.\n (2) The exclusion provisions do not apply in relation to the law of the State or Territory (including any law relating to appeals) to the extent that it relates to the proceeding (including any appeal).\n\n## Part 6—Regulations\n\n#### 42 Regulations may make provision for transitional matters\n\n (1) The regulations may make provision for matters of a transitional, saving or application nature arising out of, or relating to, the provisions of this Act or of the Workplace Relations Legislation Amendment (Independent Contractors) Act 2006.\n (2) Without limiting subsection (1), regulations made for the purpose of that subsection may prescribe modifications of Division 1 of Part 5.\n (3) Subsection 12(2) (retrospective application of legislative instruments) of the Legislation Act 2003 does not apply to a regulation made for the purposes of subsection (1).\n (4) Subsection 12(1A) (retrospective commencement of legislative instruments) of the Legislation Act 2003 does not apply to a regulation made for the purposes of subsection (1) that creates, modifies or otherwise affects a provision that makes a person liable to an offence or civil penalty.\n\n#### 43 Power to make regulations\n\n The Governor‑General may make regulations prescribing matters:\n (a) required or permitted by this Act to be prescribed; or\n (b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.","sortOrder":30},{"sectionNumber":"38","sectionType":"section","heading":"Definition","content":"#### 38 Definition\n\n In this Division:\n\n> reform commencement means the commencement of Part 2.","sortOrder":31},{"sectionNumber":"39","sectionType":"section","heading":"New applications relating to unfair contracts","content":"#### 39 New applications relating to unfair contracts\n\n An application in relation to a services contract may be made under Part 3 even if the contract was entered into before the reform commencement.","sortOrder":32},{"sectionNumber":"40","sectionType":"section","heading":"Applications under the Workplace Relations Act 1996 in progress at the reform commencement","content":"#### 40 Applications under the Workplace Relations Act 1996 in progress at the reform commencement\n\n (1) This section applies to an application in relation to a contract for services that was made before the reform commencement under section 832 of the Workplace Relations Act 1996 if the proceeding (including any appeal to a court in relation to the proceeding) in relation to the application was not finally determined before the reform commencement.\n (2) Despite the repeal of sections 832, 833 and 834 of the Workplace Relations Act 1996 by the Workplace Relations Legislation Amendment (Independent Contractors) Act 2006, those sections continue to apply to the application after the reform commencement as if they had not been repealed.","sortOrder":33},{"sectionNumber":"41","sectionType":"section","heading":"Applications under an excluded State or Territory law in progress at the reform commencement","content":"#### 41 Applications under an excluded State or Territory law in progress at the reform commencement\n\n (1) This section applies to a proceeding in relation to a contract for services that was commenced before the reform commencement under a law of a State or Territory that makes provision as mentioned in paragraph 7(1)(c) if the proceeding (including any appeal) was not finally determined before the reform commencement.\n (2) The exclusion provisions do not apply in relation to the law of the State or Territory (including any law relating to appeals) to the extent that it relates to the proceeding (including any appeal).","sortOrder":34},{"sectionNumber":"Part 6","sectionType":"part","heading":"Regulations","content":"## Part 6—Regulations","sortOrder":35},{"sectionNumber":"42","sectionType":"section","heading":"Regulations may make provision for transitional matters","content":"#### 42 Regulations may make provision for transitional matters\n\n (1) The regulations may make provision for matters of a transitional, saving or application nature arising out of, or relating to, the provisions of this Act or of the Workplace Relations Legislation Amendment (Independent Contractors) Act 2006.\n (2) Without limiting subsection (1), regulations made for the purpose of that subsection may prescribe modifications of Division 1 of Part 5.\n (3) Subsection 12(2) (retrospective application of legislative instruments) of the Legislation Act 2003 does not apply to a regulation made for the purposes of subsection (1).\n (4) Subsection 12(1A) (retrospective commencement of legislative instruments) of the Legislation Act 2003 does not apply to a regulation made for the purposes of subsection (1) that creates, modifies or otherwise affects a provision that makes a person liable to an offence or civil penalty.","sortOrder":36},{"sectionNumber":"43","sectionType":"section","heading":"Power to make regulations","content":"#### 43 Power to make regulations\n\n The Governor‑General may make regulations prescribing matters:\n (a) required or permitted by this Act to be prescribed; or\n (b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.","sortOrder":37}],"analysis":{"summary":{"complexity_score":8,"scope_assessment":{"changed":true,"description":"The Act's original scope has been meaningfully amended since 2006. Most significantly, subsection 12(2A) was inserted to introduce an income threshold requirement for court review — contractors earning below the 'contractor high income threshold' are now directed to the Fair Work Commission under the Fair Work Act 2009 rather than to the Federal Court under this Act. This represents a significant narrowing of who can access the unfair contract review regime under this Act, redirecting lower-income contractors to a different forum. The addition of section 5A (Norfolk Island rules) and updates to court references (Federal Circuit and Family Court of Australia Act 2021) also reflect incremental scope adjustments since the original enactment."},"complexity_factors":["Extensive interaction with multiple other Commonwealth laws (Fair Work Act 2009, Fair Work (Registered Organisations) Act 2009, Corporations Act 2001, Workplace Relations Act 1996, and several transitional statutes), requiring readers to cross-reference multiple legislative frameworks simultaneously.","Complex federal-state jurisdictional overlay — the Act overrides State and Territory laws in some circumstances but not others, with multiple categories of exceptions and carve-outs (outworkers, specific NSW and Victorian laws, regulations-based exceptions).","Layered definitions — key terms like 'services contract', 'workplace relations matter', 'unfairness ground', and 'constitutional corporation' each have multi-part definitions with their own sub-exceptions and qualifications.","Constitutional connection requirement — the Act only applies when certain constitutional links exist (e.g., a corporation covered by the corporations power of the Constitution), which is a concept requiring legal knowledge to apply correctly.","Detailed transitional provisions (Division 1 of Part 5) involving 'pre-reform commencement contracts', 'continuation contracts', 'related continuation contracts', 'reform opt-in agreements', 'transition days', and business transfer scenarios — these are highly technical and interrelated.","Income threshold eligibility for court review (tied to a figure in Fair Work Act regulations) creates an additional gating requirement that changes over time and requires cross-referencing external instruments.","Dual-pathway structure — higher-income contractors use this Act's court review process while lower-income contractors use the Fair Work Commission process, creating confusion about which system applies to whom.","Regulations have significant role in modifying the Act's operation (specifying excluded laws, prescribed circumstances, transitional modifications), meaning the Act's full effect cannot be understood from the text alone."],"plain_english_summary":"## Independent Contractors Act 2006 — What It Means For You\n\n### What Does This Law Do?\n\nThis Act sets the rules for **independent contractors** (self-employed people or businesses hired to perform services under a contract, rather than as employees). It does three main things:\n\n1. **Protects freedom of contract** — It says that independent contracting is a legitimate way to work, and that the terms of a contractor's agreement should generally govern the relationship (rather than laws designed for employees).\n\n2. **Blocks certain State and Territory laws from applying** — Many States and Territories have laws that can treat contractors like employees (giving them leave, minimum pay, etc.). This Act *overrides* those laws for most contractors, so that State/Territory employment-style protections generally do **not** apply to genuine contracting arrangements. However, there are important exceptions — for example, **outworkers** (often home-based garment workers), **NSW labour hire laws**, and **Victoria's Owner Drivers and Forestry Contractors Act** are still allowed to apply.\n\n3. **Creates a federal 'unfair contract' review process** — If a contractor's agreement is **unfair or harsh**, they can apply to the Federal Court (or Federal Circuit and Family Court) to have the contract reviewed, changed, or set aside. However, this only applies if the contractor earns *above* a certain income threshold (the 'contractor high income threshold' — a dollar figure set under the Fair Work Act 2009, similar to the high income threshold for unfair dismissal claims). Contractors earning below that threshold have a separate pathway under the Fair Work Act.\n\n---\n\n### Who Does This Affect?\n\n- **Independent contractors** of all kinds — tradespeople, IT consultants, transport operators, freelancers, and others who work under a contract for services rather than as an employee.\n- **Businesses that engage contractors** (the 'principal' — i.e., the person or company hiring the contractor).\n- It applies when there is a connection to a corporation, the Commonwealth government, or a Territory — which in practice covers the vast majority of commercial arrangements in Australia.\n\n---\n\n### Key Things to Know\n\n**If you're a contractor:**\n- State laws that would give you employee-style rights (like paid leave or minimum wages) generally *don't apply* to your contracting arrangement.\n- If your contract is genuinely unfair or harsh *and* you earn above the income threshold, you can ask the Federal Court to review it.\n- If you earn *below* the threshold, the Fair Work Commission (Australia's national workplace tribunal) has a separate process to deal with unfair contract terms.\n- You cannot 'double-dip' — you can't run a court challenge *and* a separate State/Territory challenge at the same time.\n\n**If you hire contractors:**\n- You cannot coerce (pressure or threaten) a contractor into signing — or refusing to sign — a 'reform opt-in agreement' (a written agreement to opt out of remaining State/Territory contractor protections during the transition period). Doing so can attract fines of up to 300 penalty units for a company.\n- Contracts that are unfair or harsh remain open to challenge in court.\n\n**Transition rules (for contracts that existed before 2007):**\n- Contracts entered into before the Act took effect in March 2007 had a **3-year grace period** during which old State/Territory laws continued to apply. Parties could agree earlier to opt out of those old protections by signing a 'reform opt-in agreement.'\n\n**What the Court can do:**\n- The Court can *set aside* (cancel) all or part of an unfair contract, or *vary* (change) its terms.\n- The Court looks at the contract as it was when it was made — not how it has played out since.\n- Costs are generally *not* awarded against a losing party unless they brought the case vexatiously (i.e., without any genuine basis), which makes it easier for contractors to challenge unfair terms without fear of a large legal costs bill.\n\n---\n\n### Why Does It Matter?\n\nThis Act is central to whether someone working under a contract is treated as a *contractor* (commercially) or effectively as an *employee* (with employment protections). It reflects a deliberate policy choice to keep genuine contracting arrangements free from employment-style regulation — while still providing a safety valve for genuinely exploitative contracts."},"issue_detection":{"absurdities":[{"type":"circular_definition","section":"4 (definition of 'independent contractor')","severity":"high","reasoning":"A definition that only excludes one category (natural persons being the only type) without specifying what affirmatively qualifies as an independent contractor creates a definitional void. Courts and parties must determine who qualifies as an independent contractor without any statutory guidance. The Act's principal objects, scope, and remedial scheme all depend on this undefined term. This is a foundational drafting failure.","confidence":0.92,"description":"The definition of 'independent contractor' states only that it 'is not limited to a natural person.' This is a purely negative definition — it tells us what an independent contractor is NOT, but provides no positive content defining what an independent contractor IS. The entire Act turns on this term, yet it is left substantively undefined."},{"type":"other","section":"12(2A)","severity":"high","reasoning":"The inversion of the protective logic is stark. Unfair contract review exists to remedy exploitation and imbalance of bargaining power. High-income earners are least likely to be in a position of vulnerability. Restricting access to the remedy to those above a high income threshold effectively immunises the most exploitative arrangements from scrutiny while providing a remedy only to those who have least need of it. This directly contradicts the objects in s 3(1)(a) and (c) of protecting independent contractors and preventing interference with genuine arrangements.","confidence":0.88,"description":"Section 12(2A) creates an eligibility threshold for unfair contract review that is paradoxical: only independent contractors earning MORE than the 'contractor high income threshold' may apply to the Court for relief. Lower-paid, more vulnerable contractors — who are far more likely to be subject to exploitation — are excluded from the statutory remedy. The provision purports to protect independent contractors but denies access to those most in need of protection."},{"type":"self_contradicting","section":"12(3)","severity":"medium","reasoning":"The phrase 'is likely to be' in s 15(1)(c) contemplates a forward-looking or ongoing assessment of remuneration relativities. This cannot be confined to circumstances at the time the contract was made, as the comparison requires reference to what employees performing similar work currently or foreseeably earn. The temporal constraint in s 12(3) and the prospective language in s 15(1)(c) operate at cross-purposes.","confidence":0.78,"description":"Section 12(3) requires the Court to 'only have regard to' the terms of the contract when it was made and other matters 'as existing at the time when the contract was made.' However, s 15(1)(c) expressly directs the Court to consider 'whether the contract provides total remuneration that is, or is likely to be, less than that of an employee performing similar work' — an assessment that necessarily requires regard to current or prospective market conditions, not merely conditions at contract formation."},{"type":"self_contradicting","section":"3(1) and 3(2) read with Part 3","severity":"medium","reasoning":"The tension between the anti-interference object and the unfair contracts review mechanism is not merely a policy tension — it is structurally contradictory within the same instrument. The Act uses 'genuine' as a qualifier (s 3(1)(c)) but provides no definition of what makes a contracting arrangement 'genuine,' leaving the contradiction unresolved.","confidence":0.82,"description":"The Act's stated object is to 'prevent interference with the terms of genuine independent contracting arrangements' (s 3(1)(c)) and to have rights governed by 'the terms of those contracts' (s 3(2)). Yet Part 3 establishes a regime for courts to set aside or vary services contracts on grounds of unfairness or harshness — an inherent interference with contract terms. The Act simultaneously prohibits and authorises interference with the same contracts."},{"type":"impossible_compliance","section":"33(4)","severity":"medium","reasoning":"Section 34 prohibits coercion in relation to reform opt-in agreements and provides for penalties. But s 33(4) makes the agreement irrevocable regardless of how it was obtained. The practical result is that a successful coercion prosecution leaves the victim bound by the coerced agreement in perpetuity. The penalty provision is thus largely hollow as a protective mechanism — it punishes the wrongdoer but does not remedy the wrong.","confidence":0.85,"description":"A reform opt-in agreement — which is an agreement between parties — cannot be revoked or varied once entered into. This means that parties who were coerced into signing a reform opt-in agreement (conduct prohibited by s 34(1)) have no mechanism to undo that agreement even if coercion is proven, since s 33(4) renders any purported revocation of 'no effect.' The anti-coercion remedy (a penalty) does not restore the contractual position."},{"type":"other","section":"8(1)(g) and 8(2)(h)","severity":"low","reasoning":"The exclusion of essential-services industrial action from the definition of 'workplace relations matter' means State and Territory laws regulating such action are NOT excluded by s 7(1). This is likely intentional to preserve state emergency powers, but the structural result is that the more serious the industrial disruption, the less the Act's exclusion regime applies — an inverse relationship between severity and federal pre-emption that is internally incoherent without explanatory notes.","confidence":0.65,"description":"Section 8(1)(g) lists 'industrial action by employees or employers' as a workplace relations matter. Section 8(2)(h) then excludes 'industrial action affecting essential services' from being a workplace relations matter. This creates an illogical sub-category: industrial action that affects essential services is treated as less worthy of the Act's protections than ordinary industrial action, with no explanation for why the stakes of the action should affect the classification."},{"type":"other","section":"12(4) read with 12(3)","severity":"medium","reasoning":"A variation to a services contract cannot be assessed for fairness or harshness in isolation from the underlying contract it modifies. Yet the combined effect of ss 12(3) and 12(4) is to require exactly that. The note to s 12(4) acknowledges the deeming effect but does not address this analytical problem. The review becomes conceptually incomplete.","confidence":0.72,"description":"Section 12(4) deems a 'contract to vary a services contract' to itself be a services contract for the purposes of Part 3, enabling its review. However, s 12(3) requires the Court to have regard only to 'the terms of the contract when it was made.' Applied to a variation contract, this means the Court must assess fairness of the variation by reference only to the terms of the variation agreement itself at the time it was made — not to the underlying contract being varied — producing a decontextualised and potentially meaningless review."}],"contradictions":[{"severity":"high","section_a":"7(1) — exclusion of State/Territory laws that impose employment-type obligations on contractors","section_b":"7(2)(b)(ii) — express preservation of the Owner Drivers and Forestry Contractors Act 2005 (Vic)","confidence":0.83,"description":"Section 7(1) broadly excludes State and Territory laws that impose employment-type obligations on independent contractors. Section 7(2)(b)(ii) carves out the Victorian Owner Drivers and Forestry Contractors Act 2005 entirely from that exclusion. However, s 10(2)(a) then confirms that s 10(1) regulations can exclude laws 'referred to in paragraph 7(2)(a) or (b)' — meaning the Minister can by regulation exclude the very laws that Parliament specifically chose to preserve in s 7(2)(b). This creates a regulatory override of an express Parliamentary preservation."},{"severity":"high","section_a":"3(1)(a) — object to protect freedom of independent contractors to enter services contracts","section_b":"12(2A) — restriction on contractors below high income threshold from accessing review","confidence":0.87,"description":"The Act's object includes protecting the freedom of independent contractors generally. Yet s 12(2A) categorically denies lower-income contractors access to the unfair contract review mechanism. This directly contradicts the universalist protective object by creating a two-tiered regime where the most economically vulnerable contractors have no statutory remedy for unfair contracts."},{"severity":"medium","section_a":"15(1) — Court 'may have regard to' listed matters in reviewing a contract","section_b":"12(3) — Court 'must only have regard to' contract terms at time of making","confidence":0.8,"description":"Section 15(1) grants the Court discretion to have regard to a range of matters including relative bargaining strength and remuneration comparisons. Section 12(3) imposes a mandatory constraint that the Court 'must only have regard to' the terms of the contract when made and other matters as existing at that time. These provisions pull in opposite directions: s 15(1) expands the Court's consideration while s 12(3) strictly confines it. The interaction is not resolved by the text."},{"severity":"medium","section_a":"9(1)(f) — unfairness ground: remuneration less than that of employee performing similar work","section_b":"9(2) read with 8(2) — grounds are not unfairness grounds to the extent they relate to non-workplace-relations matters","confidence":0.68,"description":"Section 9(1)(f) identifies as an unfairness ground that remuneration is less than that of an employee performing similar work — a ground that is explicitly framed by reference to employment comparators. Section 9(2) removes grounds from being unfairness grounds to the extent they relate to matters excluded from 'workplace relations matters' by s 8(2). The interaction creates uncertainty: remuneration comparisons to employees could arguably engage excluded matters (e.g. superannuation components, workers compensation loadings) that form part of employee total remuneration, potentially stripping s 9(1)(f) of practical content."},{"severity":"medium","section_a":"34(1) — prohibition on coercing persons to enter or not enter reform opt-in agreements","section_b":"33(4) — purported revocation or variation of a reform opt-in agreement is of no effect","confidence":0.84,"description":"Section 34 prohibits coercion in relation to reform opt-in agreements, implying that agreements obtained by coercion are wrongful. Section 33(4) makes such agreements irrevocable regardless of the circumstances of their formation. The Act thus simultaneously condemns coercion in obtaining these agreements and refuses to provide any unwinding remedy — the coerced party remains bound. The penalty under s 34 does not address the ongoing contractual consequence of the wrongful act."},{"severity":"medium","section_a":"14(3)(a) — 'other review proceedings' defined as proceedings under State/Territory laws not affected by exclusion provisions","section_b":"7(1)(c) — exclusion provisions exclude State/Territory laws providing for unfairness-ground review","confidence":0.73,"description":"The definition of 'other review proceedings' in s 14(3)(a) refers to proceedings under State/Territory laws that make provision as mentioned in s 7(1)(c) and are 'not affected by the exclusion provisions.' But s 7(1)(c) is itself one of the exclusion provisions — it is the mechanism by which such State/Territory laws ARE excluded. For a State/Territory unfair contracts law to be 'not affected by the exclusion provisions,' it must fall within the s 7(2) exceptions or the transitional regime in Part 5. The cross-reference is opaque and potentially circular in operation."}]},"kimi_summary":{"_metrics":{"completionTokens":794},"content_quality":"ok","complexity_score":7,"scope_assessment":{"changed":false,"description":"The legislation appears consistent with its original purpose. The Act was designed to protect independent contracting arrangements from employment law interference, and the provisions (including the complex transitional arrangements and limited unfair contract jurisdiction) serve that core purpose. The Norfolk Island provision (section 5A) and the high income threshold for unfair contract applications (section 12(2A)) are amendments that refine rather than fundamentally alter the scope."},"complexity_factors":["Multiple defined terms with cross-references to other Acts (Fair Work Act 2009, Corporations Act 2001, etc.)","Complex constitutional coverage tests in section 5 (the 'requisite constitutional connection')","Nested exceptions: general exclusion of State laws, then exceptions to that exclusion, then exceptions to the exceptions","Elaborate transitional provisions in Part 5 with concepts like 'continuation contracts', 'reform opt-in agreements', and 'related continuation contracts'","High income threshold test for unfair contract applications requiring calculation of 'annual rate of earnings' plus other amounts","Multiple interacting concepts: 'workplace relations matters', 'unfairness grounds', 'exclusion provisions', 'State or Territory contractor laws'","Retrospective and forward-looking application rules for pre-reform contracts","Norfolk Island modification powers in section 5A with specific limitations"],"plain_english_summary":"## What this Act does\n\nThis law is designed to **protect independent contractors** (people who work for themselves, not as employees) by keeping their work arrangements as commercial contracts rather than employment relationships.\n\n### The big picture\n\nThe Act has three main goals:\n- **Protect freedom** — let independent contractors enter into contracts on terms they choose\n- **Recognise independent contracting** as a legitimate, primarily commercial way of working\n- **Prevent interference** — stop outside parties from messing with genuine contracting arrangements\n\n### How it works\n\n**1. It overrides State and Territory employment laws**\n\nThe Act broadly **excludes State and Territory laws** that would otherwise:\n- Treat contractors as if they were employees\n- Give contractors employee-style rights (like minimum wages, leave, or unfair dismissal protections)\n- Let courts cancel or rewrite contracts because they're \"unfair\" or \"harsh\"\n\n**Important exceptions:** Outworker protections, NSW building industry laws, and Victorian owner-driver laws still apply.\n\n**2. It creates a limited safety net for unfair contracts**\n\nContractors can ask the Federal Court or Federal Circuit Court to review a contract if it's **unfair or harsh**, but only if they earn **above a high income threshold** (similar to the unfair dismissal threshold in the Fair Work Act). The court can:\n- Look at bargaining power, pressure tactics, and whether pay is less than an employee would get\n- Set aside or vary the contract\n\n**3. Complex transitional rules**\n\nThe Act includes elaborate rules for contracts that existed before the law started, including:\n- \"Continuation contracts\" — new contracts that follow old ones\n- \"Reform opt-in agreements\" — where parties can choose to opt out of State laws\n- A 3-year grace period where some State laws still apply\n\n### Who it affects\n\n- **Independent contractors** working for businesses, the Commonwealth, or in Territories\n- **Businesses** that engage contractors (they get more certainty that employment laws won't apply)\n- **Courts** — the Federal Court and Federal Circuit Court handle disputes\n\n### What it doesn't cover\n\n- Domestic work (like a contractor fixing your home)\n- Contracts where a company is the contractor, unless the work is done by a director or their family\n- Matters already covered by other laws (workers compensation, OHS, superannuation, etc.)"},"flash_summary":{"complexity_score":7,"scope_assessment":{"changed":false,"description":"The Act’s stated scope (protecting the contractual freedom of independent contractors and prioritising written contract terms as governing rights and obligations) is reflected in its substantive provisions (s3; s5; s7). The text contains transitional mechanisms (Part 5) and regulatory powers (ss10, 42, 43) that moderate immediate scope by preserving some State/Territory contractor laws for pre‑existing contracts and permitting regulation‑level exceptions, but those are internal mechanisms of the instrument rather than changes from the instrument’s own stated objectives. In short, the Act’s operative provisions implement the objects set out in s3 while building in transitional exceptions and delegated powers described in the Act itself (see ss3, 7, 31–37, 10, 42)."},"complexity_factors":["Multiple interdependent definitions (services contract, workplace relations matter, unfairness ground) that determine scope (ss5, 8, 9)","Federal–State interaction: broad exclusion of State/Territory laws with enumerated exceptions and regulatory carve‑outs (s7(1)–(2); s10)","Judicial review with procedural limits and thresholds (party‑only standing, contractor income threshold, limits on admissible time frame) (ss12(2), 12(2A), 12(3))","Detailed transitional regime for pre‑reform and continuation contracts, transfer‑of‑business rules and opt‑in agreements (ss31–37)","Delegated legislative power to the Governor‑General, Minister and regulations to specify excluded laws and make transitional modifications (s5A; s10; s42; s43)","Cross‑references to other Acts (Fair Work Act, Corporations Act, Workplace Relations Act) that affect interpretation and operation (see definitional cross‑references in ss4, 6, 9)","Mixed remedies and procedural protections (limited remedial orders, cost protections, civil penalties for coercion in opt‑in context) (ss16, 17, 34)","Multiple exclusions and carve‑outs (eg. outworkers, particular State Acts) that require granular factual/legal assessment (s7(2))"],"plain_english_summary":"What this law does, in plain terms\n\n- Sets out what counts as a \"services contract\" and treats genuine independent contracting primarily as a commercial arrangement governed by the written contract (see s5; objects in s3). A services contract requires a constitutional connection (for example, a party is a constitutional corporation or the contract is entered into or performed in an Australian Territory) (s5(2)).\n\n- Limits the effect of State and Territory workplace laws on those contracts. Where a State/Territory law would treat a party to a services contract as an employee, or impose employment-type rights or liabilities, those State/Territory law effects are, subject to exceptions, not to affect the parties’ rights and obligations under the services contract (s7(1)). The exclusion does not apply to specified narrow areas such as certain outworker laws and particular State statutes listed in s7(2).\n\n- Gives the federal courts power to review services contracts on limited \"unfair\" or \"harsh\" grounds and to make tailored orders (set aside or vary a contract or part of it) where such a ground is established (s12; s15; s16). Only a party to the contract may apply (s12(2)). Applications are limited by an earnings threshold for the contractor (s12(2A)) and by regulatoryly prescribed circumstances and competing proceedings rules (ss13–14).\n\n- Defines key terms that control the law’s reach: what counts as workplace relations matters (examples: pay, leave, hours, disputes, industrial action) (s8) and what counts as an unfairness ground (examples: contract is unfair, harsh, designed to avoid the Fair Work Act or a State industrial law, or pays less than an employee doing similar work) (s9). Some matters (for example, superannuation, workers’ compensation, OH&S) are excluded from the definition of workplace relations matters (s8(2)).\n\n- Provides a transitional framework for contracts that pre‑date the federal reforms. Pre‑reform contracts and continuation contracts may, for a defined period, continue to be governed by State/Territory contractor laws despite the federal exclusion (see Division 1 of Part 5, esp. ss31–35). Parties may agree in writing to opt in to the federal regime (a \"reform opt‑in agreement\") and thereby remove State/Territory contractor laws for specified contracts or classes of contracts (s33). The law criminalises coercion or knowingly false statements to secure or prevent such opt‑in agreements and creates civil penalties enforced by the Court (s34).\n\n- Gives executive and regulatory powers to make detailed rules: the Minister may make rules adjusting how the Act applies in Norfolk Island (s5A); regulations can specify particular State/Territory laws to be excluded (s10), make transitional modifications (s42) and generally support the Act’s operation (s43).\n\nWho decides and who pays\n\n- Who decides: the Federal Court or the Federal Circuit and Family Court of Australia (Division 2) are the Courts for reviews and remedies under this Act (definition of Court, s4; review/relief powers ss12,15–16). The Minister and Governor‑General have roles for rules and regulations (s5A; s43). Fair Work Inspectors and certain persons/organisations may take enforcement actions in limited respects (s34(5)).\n\n- Who pays: parties to a proceeding will generally bear their own legal costs unless the court finds the proceeding was instituted vexatiously or a party caused unnecessary costs by unreasonable acts or omissions (s17). Penalties imposed for prohibited conduct about opt‑in agreements are payable to the Commonwealth or as the Court directs (s34(6)).\n\nPractical effects on private actors and markets (mechanisms, incentives and trade‑offs)\n\n- Strengthens contractual autonomy: the Act makes the written terms of a services contract the primary source of rights and obligations for qualifying contracts (s3(2); s5). Businesses and contractors gain predictability because many State/Territory workplace laws cannot be used to recharacterise the contractual relationship as employment (s7(1)).\n\n- Keeps a federal safety valve via court review: courts can still intervene on unfairness/harshness grounds and may set aside or vary contracts (ss12,15–16). That preserves a judicial check where contracts are procured or operate unfairly, but the remedies are limited to placing parties back on a footing where the unfair ground no longer applies (s16(2)).\n\n- Creates incentives to document arrangements and to use written opt‑in agreements: because the Act treats collateral terms as part of a services contract (s5(4)) and allows parties to opt into the federal regime by signed agreement (s33), parties have incentives to put terms in writing and document choices about which legal regime will govern.\n\n- Produces transitional frictions and compliance burdens: the Act contains detailed transitional rules (ss31–37) that require parties and advisers to trace whether a contract is a pre‑reform contract, a continuation contract, or covered by an opt‑in agreement, and to compute the transition day (s35). That creates administrative and legal analysis costs for parties with existing contracts.\n\n- Leaves significant regulatory discretion to Commonwealth actors: regulations can identify State/Territory laws to be excluded (s10), can modify transitional arrangements (s42(2)), and the Minister can make Norfolk Island modifications (s5A). That discretion means the precise scope of excluded laws can change by regulation without amending the Act.\n\nConcrete compliance and litigation limits to note\n\n- Only parties to a services contract may apply to Court for review (s12(2)).\n- An earnings/income threshold prevents applications unless the independent contractor’s annual rate of earnings exceeds the contractor high income threshold as defined in the Fair Work Act (s12(2A)).\n- Courts are to look only at the contract terms as they were when made (s12(3)), plus any other matters this Part permits, limiting retrospective inquiry.\n- Cost protection for applicants: courts normally cannot order an applicant to pay another party’s costs unless the proceeding was vexatious or without reasonable cause (s17).\n\nWhat to watch operationally (implementation risk, concentrated benefits, substitution effects)\n\n- Concentrated benefits: parties that favour contractual certainty (typically commissioning businesses and some contractors) obtain clearer rules that State laws cannot recharacterise contracts (s7(1)).\n- Diffuse costs: independent contractors who previously relied on State/Territory contractor protections may lose those avenues for some contracts unless transitional rules or opt‑in agreements preserve them (see ss31–35). Whether a particular contractor is affected depends on the contract’s dates, any continuation relationship, and whether an opt‑in agreement exists (ss32–35).\n- Substitution effects: because courts retain review powers limited by income thresholds and by focusing on contract terms at the time of making (ss12(2A), 12(3)), parties may change contracting practices (for example, different pricing, contractual allocations of risk or record keeping) to reduce litigation risk or to meet the earnings threshold that governs access to review.\n- Implementation risk: the Act relies on delegated instruments (regulations, rules) to specify excluded State laws and to manage transition details (s10; s42; s43; s5A). Those delegated instruments will determine much of the Act’s practical coverage and can create uncertainty until made and published.\n\nPrimary sections to consult for a closer read\n\n- Definitions and core purpose: s3, s4, s5\n- State/Territory law exclusion and scope: s7, s8, s9, s10\n- Court review, limits and remedies: ss11–17\n- Transitional arrangements and opt‑in mechanism: Parts 5 (ss31–37), including reform opt‑in and prohibited conduct (s33–s35)\n- Delegated powers and Norfolk Island rules: s5A, s42, s43\n\nSources cited are the sections noted above (for example, s3; s5(2); s7(1); s12(2A); ss31–37; s33; s34)."}},"importantCases":[],"_links":{"self":"/api/acts/independent-contractors-act-2006","history":"/api/acts/independent-contractors-act-2006/history","analysis":"/api/acts/independent-contractors-act-2006/analysis","conflicts":"/api/acts/independent-contractors-act-2006/conflicts","importantCases":"/api/acts/independent-contractors-act-2006/important-cases","documents":"/api/acts/independent-contractors-act-2006/documents"}}