Major steps have been taken towards eliminating sham contracting, with productive high‑level meetings having taken place in Canberra and a strong regulatory crackdown announced today.
Victorian Transport Association (VTA) CEO, Peter Anderson, joined key transport industry leaders in Canberra yesterday to advocate for meaningful reforms which protect safety, fairness and productivity.
The delegation was led by Senator Glenn Sterle whose ongoing leadership continues to elevate the issue at a federal level.
“Sham contracting undermines the integrity of our industry,” said Anderson.
“It compromises safety, disadvantages compliant operators and erodes the rights of transport workers.
“We are pleased to see federal regulators taking decisive action.”
Today, the Australian Taxation Office (ATO) and Fair Work Ombudsman (FWO) issued a joint statement confirming a significant escalation in national compliance and enforcement activity targeting sham contracting, specifically identifying road freight as an area of concern.
Fair Work Ombudsman, Anna Booth, said employers should be aware that the FWO has investigations on foot into alleged sham contracting in sectors such as building and construction and road transport.
“We won’t hesitate to take enforcement action where we find unlawful activity in any sector,” she said.
“We are pleased to be joining forces with the ATO to shine a spotlight on this unlawful practice that leaves workers worse off and can land employers in court, exposed to significant penalties.”
Key points from the ATO and FWO’s announcement include:
- intensified investigations into suspected sham contracting across multiple sectors, including road transport;
- ongoing FWO investigations, with enforcement action to follow where unlawful arrangements are proven;
- ATO data matching revealing widespread worker misclassification, unpaid superannuation and failures in PAYG and reporting obligations;
- a sharp rise in tip-offs from the community, with nearly one-quarter relating to road freight; and
- a clear message from regulators: presenting employees as contractors is illegal and attracts substantial penalties.
Anderson said the strengthened national focus closely aligns with long‑standing concerns raised by the VTA.
“This is an important acknowledgement of the issues we have consistently put forward,” he said.
“We welcome the united stance from regulators and look forward to continuing our work with government to deliver lasting, practical reform.”
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