Gig Economy

Adjourned debate on motion of Hon. R.A. Simms:

That this council calls on the government to refer to the South Australian Productivity Commission the operation and impacts of the gig economy in South Australia, requiring the commission to investigate and report to the government on matters including:

1. The emerging nature, incidence, scope and complexity of the gig economy and in particular digital platforms that offer labour hire, rideshare, disability and aged-care services or a goods and services delivery function;

2. The extent to which workplace health and safety laws and regulations currently apply to digital platform businesses engaging workers as contractors, sole traders or employees;

3. Consider the role of workplace health and safety laws in creating a safe working environment for all South Australians with regard to the emerging ways of working in the gig economy;

4. The extent to which the Return to Work Act 2014 currently applies to digital platform businesses engaging workers as contractors, sole traders or employees;

5. The application of the Fair Work Legislation Amendment (Closing Loopholes No. 2) Bill 2023 (Cth) to South Australian legislation;

6. The taxation regime that applies to the gig economy at both a federal and state level, including the recent decision of Uber v Chief Commissioner of Revenue NSW;

7. Experience of other jurisdictions, whether that be in Australia or overseas to identify potential opportunities for reform to ensure that equitable arrangements exist for platform providers to contribute to the community in which they operate, including the potential for gig economy businesses to pay payroll tax; and

8. Any other related matters.

(Continued from 30 October 2024.)

The Hon. H.M. GIROLAMO (17:22): Firstly, I would like to thank the Hon. Robert Simms for bringing this motion to the chamber. Gig economy platforms, from ridesharing to freelance digital services, have transformed the way people earn a living. These platforms offer flexibility, job creation and opportunities for businesses to tap into a broader pool of talent. In South Australia, the gig economy is playing a vital role in stimulating local economies, supporting job growth and enhancing business innovation.

However, with these benefits can come challenges. The rapid rise of digital platforms presents complexities for governments striving to ensure that work health and safety laws, fair pay standards and protections for vulnerable workers and consumers are upheld. It is crucial that government legislation and regulation evolve as technology changes to meet the needs of this new economy. As these digital platforms continue to grow, we must ensure that workers' rights and safety are safeguarded and that employers and employees comply with industry standards.

This motion calls on the government to refer to the South Australian Productivity Commission the operation and impacts of the gig economy in South Australia. I have shown my support for important matters to be referred to the Productivity Commissioner previously, including the Hon. Ms Bonaros's motion to call on the Premier to refer to the South Australian Productivity Commission the matter of payroll tax in South Australia. Unfortunately, it seems the Premier has sat on his hands when it comes to this call, despite it being endorsed by this chamber.

My fear is that despite the result of this motion the Premier will do the same with this call. My fear is that the government does not want independent advice from any resource regarding economic policy because it will show how poorly their procurement practices, accountability and regulation really are.

Last week, the opposition, led by the shadow minister for infrastructure and transport, the Hon. Ben Hood, called on the Premier to commission a report on building and civil construction. This followed the Auditor-General's Report, which revealed that major government agencies, in particular the Department for Infrastructure and Transport, were failing to comply with basic contract controls and procurement requirements. Minister Koutsantonis's response was to deflect the blame, with no comment as to the Productivity Commission report.

In fact, during his two and a half years as Premier, Peter Malinauskas has only commissioned two inquiries from the Productivity Commission, zero reports and zero reviews. On a silver platter this government has been handed numerous tools, independent advice and economic development opportunities. Its response is to pull the wool over its eyes, denying itself and this state evidence-based economic growth opportunities. The opposition knows that, despite the result of the motion, the Premier has no obligation to commission this report. I welcome this government proving me wrong, utilising the Productivity Commission and to stop isolating itself from independent advice.

The Hon. R.A. SIMMS (17:26): I thank the Hon. Ms Girolamo for her contribution on behalf of the opposition. I had understood the government was supportive of this referral, so I hope the absence of a government speaker does not indicate a lack of interest in the issue. I note the honourable member's scepticism that the government will take this referral seriously. I have a different view; hope springs eternal for me. I think it would be very disappointing if a resolution like this were to pass the upper house and the government were not to take it seriously. It is my hope that they will take this seriously.

As I have mentioned previously in the chamber, members will be aware, this was one of the core recommendations that came out of the parliamentary inquiry into the gig economy, the inquiry initiated previously by the Hon. Irene Pnevmatikos. I stepped in mid-train to chair that inquiry and to see it through to its completion. This was one of the key recommendations: that the Productivity Commission should undertake this work.

We have had lots of debate about payroll tax in this chamber. There is an equity issue if gig platforms are able to potentially circumvent those obligations and are in effect getting a free kick that has been subsidised by fixed businesses. These are the sorts of issues the Productivity Commission should look at. I commend the motion and hope that if it passes the government will support the referral.

Motion carried.