The Victorian Transport Association (VTA) is urging transport operators and industry stakeholders to step up reporting of sham contracting, as part of its ongoing advocacy to protect the productivity, sustainability, and safety of Victoria’s transport sector.
Sham contracting continues to be a major concern across the industry, with the VTA warning that the practice undermines workplace laws, distorts competition, and places compliant operators at a commercial disadvantage.
What Is Sham Contracting?
According to the VTA, sham contracting occurs when a truck driver is engaged under an Australian Business Number (ABN) arrangement despite not owning or operating their own vehicle and instead driving a truck owned by another operator.
In these cases, the driver may legally be considered an employee rather than a contractor and could be entitled to:
- Award wages
- Superannuation contributions
- Leave entitlements
Simply paying a driver via an ABN does not automatically make them a genuine contractor.
Why the Practice Harms the Industry
The VTA has been vocal in its opposition to sham contracting, highlighting the risks it creates across the supply chain.
According to the association, sham contracting:
- Undermines legitimate and compliant business models
- Erodes driver entitlements and protections
- Creates unfair competition on price
- Weakens safety outcomes by increasing pressure on drivers
When operators cut corners on employment arrangements, the impacts are felt well beyond individual businesses, affecting standards across the entire transport task.
Call for Industry Action
The VTA is calling on its members and the broader transport industry to report suspected cases of sham contracting when they are identified.
Information provided to regulators plays a critical role in addressing tax evasion, shadow economy activity, and unlawful employment practices. Reporting helps ensure a fairer and more sustainable operating environment for compliant operators.
Sham contracting is not a victimless practice. It exposes businesses to legal and financial risk, disadvantages drivers, and undermines safety and trust across the industry.
How to Report Sham Contracting
Suspected sham contracting can be reported confidentially and anonymously to the Australian Taxation Office (ATO).
Reports can be made by:
- Using the ATO’s online tip-off form
- Calling the Tax Integrity Centre on 1800 060 062
Tip-offs assist the ATO in investigating sham contracting, tax evasion, shadow economy activity, and other fraudulent practices.
Why This Matters
Maintaining a fair and compliant industry benefits everyone — drivers, operators, customers, and the broader community.
At Logbook Checker, we support efforts that protect drivers, back legitimate operators, and promote safe, sustainable transport operations. Addressing sham contracting is a critical part of strengthening compliance, safety, and long-term industry viability.