Fed: Couriers vow more protest action over contractor tax

AAP General News (Australia)
08-20-2001
Fed: Couriers vow more protest action over contractor tax

By Jim Hanna

CANBERRA, Aug 20 AAP - Courier owner-drivers today vowed to continue protesting in
capital cities across the nation against tax changes they say will send them bankrupt.

Almost 700 owner-drivers brought their campaign against the government's moves to crack
down on sham contractors to Canberra today, saying the changes would cost them up to $250
a week more in income tax.

The owner-drivers say they are genuine contractors caught up in a tax change designed
to plug tax avoidance by employees posing as contractors.

Contractors who set themselves up as small businesses qualify for the 30 per cent company
tax rate, and thus avoid personal rates of up to 47 per cent.

But under the changes introduced with the GST last year, those earning 80 per cent
of their income from one source may be treated as Pay As You Earn (PAYE) taxpayers instead
of small business operators.

Protest organisers said the couriers all owned their own vehicles and had always been
considered genuine contractors.

"They weren't employees one day, contractors the next," Transport Workers Union secretary
Tony Sheldon said outside Parliament House.

"They're legitimate people paying GST, with ABN numbers, filling out BAS and paying
the appropriate tax."

Mr Sheldon said there were more than 30,000 owner-drivers across Australia who would
be affected by the new rules.

"This new tax will send them, their operations and their families bankrupt."

The government had assured owner-drivers on three occasions before the Aston by-election
that they would be safe under the new arrangements, he said.

"Then in one fell swoop, they've hidden behind the tax department to say not only are
you not safe, but you're dead meat.

"As far as we're concerned, this campaign will continue on until this government turns
around and sticks by its word.

"There's going to be further action across capital cities and we'll certainly be having
some more innovative actions in Canberra as well."

Today's protest was led by seven owner-drivers who set off on foot from Sydney last Thursday.

One of those drivers, Jeff O'Flynn, said the 300 kilometre walk would be worth it if
Treasurer Peter Costello heard their message and acted appropriately.

"If we get the result desired, then yeah, it was all worthwhile and the 300 kms was
all 100 per cent worth it because we saved our businesses."

The Courier and Taxi Truck Association said Australia's courier industry would not
operate without owner-drivers.

Labor senator Steve Hutchins urged the couriers to send the government a message on
election day if it did not alter the tax change as promised.

"If (Prime Minister) John Howard and Peter Costello don't keep their word, just keep
it in your drawer 'til election day and give them a kick in the pants like their party
got in the Northern Territory on Saturday," he said.

AAP jph/daw/cjh/br

KEYWORD: COURIERS NIGHTLEAD

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