VTA calls for sham contractor reporting

The Victorian Transport Association (VTA) is urging transport operators and industry stakeholders to report incidences of sham contracting.

The call comes as part of the VTA’s ongoing advocacy to protect the productivity, sustainability and safety of Victoria’s transport industry.

The VTA explained that sham contracting occurs when truck drivers are engaged using an Australian Business Number (ABN) despite not owning or operating their own vehicle and instead driving another operator’s truck.

This practice undermines workplace laws, distorts competition and places compliant operators at a commercial disadvantage, the association said.

VTA CEO, Peter Anderson, said the Association continues to advocate strongly against sham contracting, which erodes legitimate business models, compromises driver entitlements and weakens safety outcomes across the supply chain.

“Using an ABN does not automatically make someone a contractor,” Anderson said. “Where drivers do not own their vehicle, they may be entitled to full award wages, superannuation and leave accruals at a minimum. Non‑compliance harms drivers, operators and the broader industry.”

Anderson said the VTA is calling on members to assist in addressing sham contracting by reporting suspected cases whenever they are identified, noting that information shared with regulators plays a critical role in tackling tax evasion and shadow economy activity.

“Sham contracting is not a victimless practice,” Anderson said.

“It undermines compliant operators, exposes businesses to significant risk and ultimately weakens safety outcomes across the transport task.”

Addressing sham contracting remains a key focus of the VTA’s advocacy as it works with government, regulators and industry stakeholders to maintain a fair and competitive operating environment.

“This is about protecting drivers, supporting legitimate operators and ensuring our industry remains productive, sustainable and safe,” said Anderson.

The VTA said suspected sham contracting can be reported to the Australian Taxation Office (ATO) confidentially and anonymously, using the online tip‑off form or calling the Tax Integrity Centre on1800 060 062.

The tip-off reports assist the ATO to address sham contracting, tax evasion, shadow economy and fraudulent activity.