Non-constitutional corporations

Non-constitutional corporations are business structures that don’t fit the legal definition of a corporation under the Australian Constitution. They include sole traders, who run their business as an individual, and partnerships, where the business is managed by two or more people together. Unlike incorporated companies, these businesses are not considered separate legal entities from their owners, affecting their legal and financial responsibilities.

Why it matters in Western Australia

In most of Australia the distinction makes little practical difference. New South Wales, Victoria, Queensland, South Australia and Tasmania referred their workplace powers to the Commonwealth, and the territories are covered directly, so unincorporated private employers there are in the national Fair Work system. Western Australia has not referred its powers, so sole traders, partnerships and some trusts in Western Australia are covered by the state industrial relations system. For example, a Perth hair salon run as a partnership follows Western Australian employment laws, not the Fair Work Act.

See national workplace relations system and our guide to the Fair Work Act.