Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Hansard source

The Treasurer has provided the following answer to the honourable senator's question:

(1) There are no provisions in the law enabling prosecutions for 'sham' contracting. The ATO refers cases for possible prosecution for pay as you go withholding offences to the Commonwealth Director of Public Prosecutions, who decides whether to prosecute a particular case. There have been no prosecutions for 'sham' contracting.

(2) Not applicable (see question 1).

(3) The ATO targets businesses engaging contractors based on criteria that indicate risk of non compliance. The criteria include, but are not limited to, the industry involved. Compliance activity has been conducted across a wide range of industries including building and construction, cleaning, retail, hospitality and accommodation, restaurants and cafes, information technology, security services, call centres and telemarketing, education, health and aged care, agriculture and fishing, meat and chicken packing and processing, transport and logistics, professional services, real estate, and sports and entertainment.

Audits have revealed evidence of sham contracting, and consequent non compliance with taxation and superannuation obligations, in all these industries, with particular concentration identified in the building and construction and cleaning industries.