# Labour Hire Tax Scandal — $104M ATO Investigation

**Date:** 2026-02-20
**Source:** Radar intel + AFR (Feb 2, 2026)

## The Story
- **Zenith labour hire** (run by brothers Ned and Senad Kocic) — one of the biggest labour hire firms in NSW
- **15+ companies** linked by payments, taken over by ATO-backed liquidator McGrathNicol
- **$104M** in unpaid PAYG tax + state payroll tax
- **Federal Court freezing orders** on bank accounts and assets of top managers
- **88 people** flagged for examination
- **Phoenix activity:** companies lasted 1-2 years then folded owing millions
- **Major clients:** $1.2B RBA refurbishment, $3.1B data centre, Sydney towers

## Why This Matters for Sales
Labour hire firms are the middlemen we're replacing. This scandal proves:
1. The labour hire model creates compliance risk for contractors
2. Your labour supplier can collapse overnight, leaving you exposed
3. Phoenix activity is rampant — dodgy operators cycle through company names
4. Direct hiring (RateRight model) eliminates all intermediary risk

## Sales Scripts

### Cold Email/SMS:
"A major Sydney labour hire network just got caught owing $104M in unpaid taxes — they were supplying workers to billion-dollar projects. With RateRight, you hire directly. No middleman. No compliance risk. $50."

### Objection Handler ("We use labour hire"):
"Just so you know — a major NSW labour hire network was just investigated for $104M in tax fraud. Companies that seemed legit, working on the RBA renovation and data centres. With us, you hire direct — there's no intermediary that can fold owing millions."

### Combined Pitch (ACCC + ATO):
"The ACCC is cracking down on unfair platform contracts. The ATO is investigating labour hire firms for $100M+ tax fraud. RateRight avoids both problems — no contracts, no intermediary. $50, direct hire, done."

## Source
- AFR: https://www.afr.com/policy/tax-and-super/firm-working-on-rba-makeover-mired-in-tax-investigation-20251210-p5nmcg