OneSource Customs & Logistics

🚛 NHVR Intensifies Focus on Sham Contracting & High-Risk Operators

The National Heavy Vehicle Regulator (NHVR) has announced a renewed crackdown on high-risk transport operators, while also increasing focus on sham contracting practices across the road transport sector.

According to the NHVR:
• 21 operators have been identified as presenting unacceptable safety risks
• Multiple operators have lost accreditation or are under review
• Prohibition notices have already been issued to several businesses following intelligence-led investigations

What is sham contracting?
Sham contracting occurs when workers are incorrectly classified as independent contractors instead of employees — often to avoid obligations such as:

• Superannuation
• Leave entitlements
• Workers compensation
• Payroll obligations

Regulators and industry groups are increasingly linking sham contracting to:
⚠️ Safety risks
⚠️ Fatigue pressures
⚠️ Poor maintenance practices
⚠️ Unsustainable pricing models
⚠️ Unfair competition across the supply chain

This is becoming a major focus area across transport, logistics, and supply chain operations — with the NHVR, Fair Work Ombudsman, ATO, and other agencies now working together more closely than ever before.

A strong reminder that compliance is no longer just about freight movement — it extends across governance, workforce arrangements, safety culture, and supply chain accountability.