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NatRoad Demands Action Against Illegal Employment in Trucking

Addressing Sham Contracting and Its Impact on the Industry

NatRoad Demands Action Against Illegal Employment in Trucking?w=400

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The National Road Freight Transport Association (NatRoad) has recently highlighted a pressing issue within Australia's trucking sector: the prevalence of illegal employment practices, notably sham contracting.
This practice involves misclassifying employee drivers as independent contractors, allowing companies to evade obligations such as payroll tax, superannuation, and workers' compensation insurance.
Such misclassification not only undermines fair competition but also jeopardises road safety standards.

Warren Clark, CEO of NatRoad, emphasised the gravity of the situation, noting that some transport companies openly advertise for 'employee drivers with ABNs' on major job platforms. This blatant disregard for legal employment standards indicates a systemic problem that requires immediate government intervention.

The ramifications of these illegal practices are multifaceted. Legitimate operators find themselves at a competitive disadvantage, facing cost disparities of 20-30% compared to non-compliant counterparts. This financial strain can lead to corners being cut, potentially compromising safety on the roads. Additionally, the Australian Taxation Office loses significant revenue due to these evasive tactics.

To combat this issue, NatRoad has proposed several measures:

  • Comprehensive industry audits targeting non-compliant operators.
  • Personal liability for directors facilitating sham contracting schemes.
  • Disqualification of non-compliant companies from government contracts.
  • Enhanced resources for the Shadow Economy Taskforce to focus on the transport sector.

Addressing these illegal employment practices is crucial for the sustainability and safety of Australia's trucking industry. Ensuring compliance will not only level the playing field for operators but also enhance the overall integrity of the sector.

Published:Thursday, 13th Nov 2025
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

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