Sham contracting crackdown targets freight operators

ATO, FWO plan ‘sham contract’ clampdown, warn of massive fines

Businesses convicted of sham contracting could face fines of up to $500,000, as the Australian Taxation Office (ATO) and Fair Work Ombudsman (FWO) ramp up their crackdown on the practice. Sham contracting happens when an employer misrepresents to a worker that an employment relationship is an independent contracting arrangement. This might be done to avoid paying entitlements such as superannuation, leave, and workers’ compensation.  “Some busin…

Significant progress made towards ending sham contracting - Trailer Magazine

Image: KM.Photo/stock.adobe.com.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 Sena…

Fair Work and ATO turning the spotlight on sham contracting

Sham contracting is on the agenda for the ATO and FWO. Image: Maksym Dykha - stock.adobe.comSham contracting has been placed firmly in the cross hairs of the Fair Work Ombudsman and the Australian Tax Office as the organisations move to respond to intelligence revealing the practice is rife across several industries, including road transport. In a joint statement released this morning the ATO and FWO say: “Sham contracting happens when an employ…

Sham contracting crackdown targets freight operators

Investigations are underway into alleged sham contracting in sectors including road transport. Image: KM.Photo/stock.adobe.com The Australian Taxation Office (ATO) and Fair Work Ombudsman (FWO) have stepped up scrutiny of sham contracting arrangements across several industries, including road freight, the government agencies announced today. In a joint media release, the ATO and FWO warned trucking businesses they could face significant penaltie…