Here’s the ugly truth about a growing cancer in our industry: sham contracting is ripping off drivers and giving dodgy operators a massive cost advantage.

It’s not new. But it’s getting worse.

And now, the boss of the South Australian Road Transport Association, Steve Shearer, is calling out the Australian Taxation Office (ATO) to actually do something about it.

The Rort in Plain English

Here’s how it works:
Instead of hiring a driver as an employee — with wages, super, and WorkCover — some operators force drivers to work under an Australian Business Number (ABN).

That means:
❌ No super (unless the driver pays it themselves)
❌ No WorkCover (or they fork out $150/week for their own)
❌ No entitlements — sick leave, holiday pay, nothing

Meanwhile, the prime contractor pockets a 22–23% saving on labour costs. That’s not a “competitive edge.” That’s straight-up exploitation.

“It’s Not Hard to Find Them”

Shearer’s point is simple: the ATO already has the data.

“Run a check on your database for individuals under ABNs who are truck drivers. It would be a large number. Do some digging, and you’ll find millions in unpaid super.”

It’s not rocket science — and if the ATO actually enforced the laws, not only would drivers get what they’re owed, but we’d stop this race to the bottom on rates.

The Law Is There… But Does It Work?

On paper, the Fair Work Act and the Superannuation Guarantee Administration Act 1992 cover these situations. Even some contractors are legally entitled to super if their contract is “wholly or principally for their labour.”

In practice?
Owner-driver Ray Christie tried taking a timber supplier to court for sham contracting — and lost. Despite only working for them, having his truck covered in their signage, and never contracting to anyone else, the magistrate tossed the case in under 40 minutes.

His verdict on the system?
“All talk, smoke and mirrors.”

Why This Matters to the Industry

Sham contracting doesn’t just hurt the driver. It drags down the entire industry:

• Good operators can’t compete with the artificially low rates dodgy players offer.
• Drivers burn out with no safety net, no super, and no protection.
• The taxpayer picks up the tab later when those same drivers hit retirement with nothing saved.

It’s a lose-lose-lose — unless you’re the one pocketing the 23% saving.

The Bottom Line

The laws exist. The data exists. The rorts are obvious.

The only question left is whether the ATO and Fair Work will actually enforce them — or keep letting exploitation masquerade as “contracting.”

Because if they don’t, it won’t just be drivers losing out.
It’ll be every honest operator who’s playing by the rules.