Constitutionally covered business

These are businesses that operate under the constitutional laws of Australia. They include various types of corporations and government bodies but exclude sole traders, partnerships, and non-trading or financial corporations. Understanding this classification is important for knowing which laws and regulations apply to a business.

Which businesses are in the national system?

In New South Wales, Victoria, Queensland, South Australia and Tasmania, almost all private sector employers are in the national system because those states referred their workplace powers to the Commonwealth, and the territories are covered directly. In Western Australia, only constitutionally covered businesses, such as trading Pty Ltd companies, are in the national system; sole traders, partnerships and some trusts are covered by the state system. For example, a Perth plumbing business run as a partnership is covered by Western Australian law, not the Fair Work Act.

Read our guide to the Fair Work Act.