Senator Eric Abetz

“Labor needs to come clean on Assistant Treasurer Nick Sherry’s plans to force independent contractors in Tasmania to differentiate between income earned from capital and income earned from labour,” Senator Abetz said today.

“Labor’s refusal to match the Coalition policy to retain the taxation laws for independent contractors proves that Labor has a secret agenda which they won’t reveal prior to the election.”

“From the individual handymen, plumbers and computer programmers, there are thousands of individual contractors all around Tasmania who would all suffer at the hands of Senator Sherry’s proposal.”

“Labor’s plan would result in independent contractors having to pass Labor’s proposed personal services income test by being forced to attribute part of their income to the person who supplies labour,” says Senator Abetz.

“The labour suppliers would in turn be deemed to be employees rather than individual business operators and contractors would likely need to employ labour if they wish to be classified as contractors.”

“Put simply this is a deliberate Labor tactic to stifle the aspirations of independent contractors who would prefer to break out on their own rather than being forced to become part of Labor’s regimented workforce.”

“Labor’s secret plan is bad news for Tasmania’s independent contractors and just like all of Labor’s recent policy decisions, fails the common sense test,” Senator Abetz said.