SMALL BUSINESS couriers in the gig economy, like Uber Eats and Deliveroo, can now access the Victorian Small Business Commission (VSBC) to help resolve their disputes. 

Under new amendments to the Owner Drivers and Forestry Contractors Act 2005 passed in Parliament yesterday, the definition of ‘freight broker’ has been changed to make sure contractors employed through third party platforms like Uber Eats are covered.

The change responds to a government review that found many hirers and brokers to be in breach of the Act. For example, many weren’t providing cost schedules and contracts, leaving owner drivers exposed to safety, income and business risks. 

Commissioner Judy O’Connell has backed the change to the dispute resolution process, and our new role in providing further supports for disputes can’t be resolved through mediation. 

“This new support is significant because it means gig economy small business couriers who are in dispute can come to us for determinations that are binding, keeping their disputes out of the court system,” Commissioner O’Connell said.

In 2018–19 the VSBC received 23 applications for small business driver disputes, about 85 percent of which were successfully resolved. Where disputes couldn’t be resolved, this was because the parties couldn’t reach an agreement or the business contracting the service refused to take part in mediation.

“In a lot of instances, it’s just not worthwhile taking these matters to court because of the high costs involved – costs that are prohibitive for many small businesses,” Commissioner O’Connell said. 

“This important change means small business couriers will have access to a low cost, confidential and binding dispute resolution process that will let them resolve their disputes quickly so they can get back to business.”

The VSBC will start providing these new supports in May 2020. For more information about how gig economy small business couriers can access these services, visit the VSBC’s website.

The Victorian Small Business Commission is an independent government agency that advocates on issues affecting small business, educates people in small business about their rights and responsibilities, and helps them to avoid or resolve disputes. 

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THE REGULATORY system for tax and financial advisers needs significant simplification, according to the Financial Services Council (FSC).

The FSC made this call in a submission, released today, to an independent review of the Tax Practitioner’s Board and Tax Agents Service Act 2009. 

FSC CEO Sally Loane said the FSC recommended a single regulatory regime for advisers who provide both tax and financial advice, replacing the current regime with overlapping and duplicated registration.

“The FSC’s preferred approach would mean advisers adhere to one code of ethics, and are overseen by one code monitoring body that helps deliver the protections consumers expect and that advisers are obliged to adhere to,” Ms Loane said. 

“Ongoing changes to the regulatory environment for financial advisers, including new professional and education standards are transforming financial advisers into a profession in line with other professions such as accounting and law. 

“These changes present a timely opportunity to integrate Tax (Financial) Advisers (TFAs) into the regulatory framework for financial advisers," Ms Loane said.

This reform would bring TFAs into a single regulatory regime under the Financial Adviser Standards Ethics Authority (FASEA) reducing unnecessary costs and bringing greater clarity to consumers and advisers. Advisers would continue to be bound by other regulations including privacy and anti-money laundering laws.

“This reform would not mean a decline in the standards for TFAs – the FSC’s proposal would just remove unnecessary regulatory duplication and overlap. It would also mirror the approach for lawyers who do not need to register with the TPB given their existing strong regulatory structures,” Ms Loane said.

“The FSC’s recommended approach means consumers would not have to engage with the TPB for the tax component of the advice they receive as well as the Code Monitoring Body for financial advice.

“Ensuring a simplified regulatory regime that reduces regulatory overlap and is easier for customers to navigate is thoroughly consistent with the recommendations of the Hayne Royal Commission,” Ms Loane said.

The FSC considers the TPB and FASEA should continue to have open dialogue as these new standards are implemented and to develop a single regime for financial advisers. 

Full copy of the FSC submission: https://fsc.org.au/resources/1844-fsc-submission-tpb-review-2019-discussion-paper/file

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POLITICAL advertising on social and traditional media is being investigated by the Joint Standing Committee on Electoral Matters as part of its inquiry into the 2019 Federal election.

Committee Chair, Senator James McGrath, said social media has blurred the lines of what is and isn’t political advertising.

"It was clear in the 2019 election that Australians were inundated with a huge volume of political advertising on all platforms. But perhaps of more concern is the rise in political disinformation from ambiguous sources online," Senator McGrath said.

"Smart phones and social media have changed how Australians publish and access information. Digital platforms are taking over traditional media – but the regulatory framework hasn’t kept up."

"Electoral integrity is crucial for a healthy democracy. We need to hear from people with solid ideas on how we can keep our electoral processes strong."

Anybody can make a submission that address the terms of reference. Submissions attract protection under the Parliamentary Privileges Act 1997.

Submissions close on September 20 and the Committee expects to hold public hearings later this year.

People wishing to make a submission can call the secretariat for advice or visit aph.gov.au/em for more information.

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THE International Transport Workers' Federation has requested the Australian Maritime Safety Authority urgently investigate after seafarers on a vessel docked at Port Kembla reported that they had not been paid in more than two months.

The Hong Kong-flagged bulk carrier MV Xing Ning Hai, owned by Chinese company Ocean Prosperity and managed by Dalian​ ​Shipping, is in Port Kembla to carry steel from Bluescope.

Sister-vessel MV Xing Jing Hai was yesterday detained by AMSA in the Port of Brisbane following almost-identical allegations of unpaid wages.
That crew of both vessels have reported that they have not been paid since June, with more than $200,000 owed in wages.

The MV Xing Ning Hai was last year detained by AMSA in Devonport, Tasmania, after an ITF inspection found the crew had not been paid for six months. More than $300,000 was recovered in unpaid wages before it was allowed to depart Australian waters.

The incidents follow the detention last week of Panama-flagged MV Fortune Genius at the Port of Gladstone after an ITF inspector found fraudulent documentation, including two sets of books, being used to conceal wage theft.

In total, ITF inspectors have identified more than $250,000 dollars in unpaid wages during audits of vessels at Australian ports during the past week, along with further breaches of the Maritime Labour Convention, highlighting rampant exploitation of foreign seafarers.

ITF assistant coordinator Matt Purcell said the fact that three almost identical cases of wage theft had been identified in such a short period of time highlighted the serious exploitation taking place in Australia’s maritime supply chains.

“These cases show that massive wage theft and the exploitation of vulnerable foreign seafarers are not an anomaly, they are a central feature of the business models of many of the shipping operators carrying freight too and from Australia,” Mr Purcell said. “All these vessels have been contracted to carry goods and materials for major businesses. The Xing Ning Hai is in Port Kembla to carry steel from Bluescope, while the Xing Jing Hai was in Brisbane to deliver clinker to Cement Australia.

“AMSA deserves to be commended for acting swiftly once issues are identified, but the current system relies on the efforts of ITF inspectors and whistle-blowers among ship crews to identify problems, meaning countless cases of exploitation are slipping through the gaps.

“Without the actions of the ITF, not one of these vessels would have been inspected, which is why so many companies think they can get away with rampant exploitation in Australian waters.”

ITF president Paddy Crumlin said the cases highlighted the urgent need for stronger shipping laws and more proactive enforcement to counter the growing use of highly-exploited foreign workers in Australian waters.

“In recent decades, the number of Australian-flagged vessels has been slashed, with local seafarers replaced by exploited foreign crews on ships registered in notorious tax havens,” Mr Crumlin said. “The country is now almost entirely dependent on foreign flag of convenience vessels, often registered in tax havens and crewed by exploited workers on as little as $2 per hour.

“What these three incidents show is that this isn’t an occasional issue involving one rogue operator, it’s a central part of the business model of a growing number of companies that are contracted to supply Australia’s fuel, carry our resources, and move cargo to and from our ports.

“When BHP axed the last two Australian bulk carriers earlier this year — replacing 80 Aussie seafarers with foreign flag-of-convenience vessels — we warned that the ongoing failure of the Australian Government to tighten shipping laws was sparking a race to the bottom.

“Too many big businesses refuse to take responsibility for the exploitation in their supply chains, which is why we need political leadership to ensure Australia’s maritime trade isn’t built upon the systematic abuse of vulnerable foreign seafarers.”

About the ITF and ITF Inspectorate
The International Transport Workers' Federation is a democratic global union federation of 670 transport workers trade unions representing over 20 million workers in 140 countries. The ITF works to improve the lives of transport workers globally, encouraging and organising international solidarity among its network of affiliates. The ITF represents the interests of transport workers' unions in bodies that take decisions affecting jobs, employment conditions or safety in the transport industry.
The ITF Inspectorate is a network of 147 Inspectors and Contacts, based in ports all over the world, whose job inspect ships calling in their ports to ensure the seafarers have decent pay, working conditions and living conditions on board. They conduct routine inspections and also visit ships on request of the crew. If necessary they assist with actions to protect seafarers' rights as permitted by law.

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