From an interview with Leslie
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Leslie Hughes said:Since I left high-school, I've picked up differing freelance roles which have enabled me to hire some mates to do various work for me. Anyone who has hired people will know that it's hard. There are workcover forms, super forms, tax forms, PAYG calculations, rules about certain hours, rules about certain conditions, excess hours, and a whole lot more. A lot of these rules serve a purpose, but if I want someone to help me out for a few hours and then pay them by-the-books, I might have a day of figuring out what paperwork needs to be filled out. I might also find that I was breaking some law.
I first hired a 20-year-old friend when I was 19 to help me work on a software project. They'd sit beside me on another computer and do part of the work while I'd do another part on my computer. Another friend, who was like a mentor, mentioned that I needed workcover. I had no idea. It seemed absurd that I needed insurance so my mate could type some code on a computer next to me. I rang the Workcover people to ask them what the deal was. It turned out by not having Workcover while someone was working for me I had been breaking the law, to which I had openly admitted over the phone. I was fined ~$400. I did know that I had to pay Super, and kept harassing my mate in telling him to bring in his details so I put the cash into his account. He knew I had put the money aside and he trusted me. It took him maybe six months to finally bring in his details, and when I rang up to find out how I to transfer the money across, it turned out that Super must be paid into an account within three months, I had broken the law again. I was fined ~$300.
Of course, each extra time you hire someone, you are more prepared and it takes you less time to get the paperwork done, but with the introduction of WorkChoices, then FairWork, and then possibly something new with the current federal government, you constantly have relearn how to do the "right" thing.
Why tell this story? To illustrate a point: How is small business or anyone else who can't afford to keep workplace lawyers on a retainer supposed to hire people without spending lots of time and bringing on unnecessary risk? Add the complications and risks of hiring people that you do not know, and hiring becomes even less appealing.
The majority of jobs exist within small to medium sizes business, and despite the boogeyman stories, the majority of businesses owners want to do the right thing, but it's hard knowing what the "right" thing actually entails.
I still feel that I didn't deserve to be fined, but how is a poor 19 year-old supposed to fight it? Unnecessary and harmful red-tape which punishes honest actors needs to be scrapped.
Although most workplace regulation is done at the federal level, one policy which is a big part of the Victorian LDP platform is to scrap the "jobs tax", better known as the "payroll tax". For organisations which are subject to this tax, it would bring down the cost of paying wages by 5% making Victoria a much more competitive in labour costs without cutting wages.
At the Federal level, LDP Senator David Leyonhjelm was responsible for splitting the carbon tax repeal bill as to keep the tax-three threshold from going back to $6,000 from the $18,000 mark. The LDP's federal policy is to make the first $40,000 per year, or ~$800 per week tax-free. This means people on lower incomes, particularly younger people, get to keep more of what they earn, and will also make it easy for employers hiring young people in that they will not have to spend time calculating PAYG/etc.
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