QTA calls for urgent action to eradicate illegal ABN practices in road transport 05.11.2025
QTA CEO Addresses Sham Contracting Crisis at Road Transport Roundtable, Wednesday 5 November 2025
Canberra, 05/11/2025 – Gary Mahon, CEO of the Queensland Trucking Association (QTA), today lead the industry discussions with senior government Ministers and Senators when he addressed the Road Transport Industry Roundtable in Parliament House, Canberra, highlighting the critical issue of sham contracting and its detrimental effects on the road freight industry.
Mahon emphasised the industry's long-standing commitment to fairness, safety, and excellence, underpinned by a tripartite compact between Employers, Unions, and Government. He noted the significant establishment of the Road Transport Division within the Fair Work Commission in August 2024, a testament to this commitment.
However, Mahon warned of the "perpetual rise of ABN-based employment," where workers are treated as contractors, denying them basic entitlements and circumventing employee protections. "This illegal activity not only erodes workers' rights but destabilises the entire supply chain, creating a two-tier system that favours cost-cutting over safety and fairness," he stated.
The QTA CEO pointed out that the widespread use of ABNs to halve labour costs creates an unbalanced market, jeopardising the sustainability of the industry and suppressing wages and safety standards. He also noted that while recent Federal legislation aims to uphold Award protections, the use of ABNs remains a significant loophole.
Mahon urged all fleets to take proactive steps in combating this illegal practice. "Fleets can help eradicate sham contracting by undertaking thorough due diligence with the subcontractors they engage and by questioning how those subcontractors are engaging their workers," he advised. He also underscored the illegality of businesses supplying trucks and equipment while using contractors for labour only.
Mahon called for urgent action to address weaknesses in the Closing the Loopholes Amendments, particularly concerning the "Barn Door size" loophole in the reasonable belief defence within the Fair Work Act 2009. He stressed that the supply chain faces unprecedented strain, with rising costs, insolvencies, and legal evasions threatening safety and industry stability.
"Fleets that survive will simply be those who can weather bad terms and unfair practices the longest," Mahon cautioned. He also criticised the reliance on TPAR (Taxable Payments Annual Report) to capture ABN labour abuses, calling it a "misguided hope" and urging the ATO to consider more effective solutions.
Highlighting the industry's significant contribution to the Australian economy, employing 640,000 Australians and contributing 8.6% to the GDP, Mahon warned that the erosion of the statutory framework would undermine industry stability, lead to revenue losses, and hamper the capacity to fund essential public services.
Along with a number of other Associations who particpated in the roundtable, the QTA will continue advocating for the practice of sham contracting to be addressed and for legislation to be appropriately amended to stem the rise in this practice in the transport industry.
Mahon concluded with a strong call to action, stating, "Government agencies must act on these illegal ABN practices and act decisively to eradicate their use. This erosion risks undermining our nation's economic strength and long-term prosperity."
Contact for Media: Gary Mahon CEO-QTA 0418 736 802 gary@qta.com.au
