Unpaid Australians urged to come forward in Scale empire probe

The Fair Work Ombudsman has urged employees with complaints about Geelong-born businessman David Collard’s company to come forward. See what you can do next.

Founder of Australian company, Scale Facilitation, David Collard in the One World Trade Center office. Picture: Abby Holden

The workplace watchdog has appealed for Australian employees with complaints about the troubled Scale Facilitation empire run by high-flying businessman David Collard to come forward.

The Fair Work Ombudsman said it was investigating Scale, which is already at the centre of an investigation by the Australian Federal Police over possible tax fraud.

It was revealed on Saturday that Mr Collard’s employees had lodged complaints with four law enforcement agencies in two countries over unpaid wages dating back months, amid heavy financial pressure on Scale after it failed to make the final payment needed to take over UK battery maker Britishvolt.

A FWO spokesperson said the regulator was “conducting an investigation in relation to Sanitex Global Pty Ltd trading as Scale Facilitation”.

“As this matter is ongoing, it is not appropriate to comment further at this time,” the spokesperson said.

“Any workers with concerns about their pay or entitlements are encouraged to contact us directly.”

A Scale representative declined to comment.

Mr Collard, who runs the Scale empire from an office at One World Trade Centre in New York, lived in a US$23.5m luxury apartment overlooking Central Park until moving out last week after a legal stoush with his landlord, Yiqian Liu.

The ritzy New York apartment building where David Collard lived until last week. Picture: Alex Towle.

In documents filed with the New York Civil Court the Chinese billionaire accused Mr Collard of failing to pay the US$75,000 monthly rental fee in May and June. Mr Collard agreed to move out by the end of August and pay back rent of more than US$300,000.

Mr Collard opened the New York office in a blaze of publicity in December, throwing a lavish opening party that was attended by both Deputy Prime Minister Richard Marles, who was in town on official business, and Opposition Leader Peter Dutton, who Scale flew over.

He and Scale were behind a rescue bid for Britishvolt, but last month administrators handling the sale said Scale failed to pay the last of four instalments due to take over the business.

Scale disputed that it was in default.

David Collard with Richard Marles. Picture: Supplied.

In June, the AFP raided Scale’s offices in Geelong and other addresses including the home of a senior executive as part of an investigation into an alleged $150m tax fraud.

The investigation is being run by the Serious Financial Crime Taskforce, which is led by the Taxation Office and includes officers from other agencies including the AFP and the Australian Securities and Investments Commission.

Scale has denied any wrongdoing “and will continue working with legal and other advisers to defend any matters arising from these discussions”, the company said in early July.

No charges have been laid.

David Collard poses with Australian businesspeople at his (now former) apartment in New York. Picture: Supplied.

In marketing documents, Scale boasted it could secure rulings from the Department of Industry, Science and Resources allowing it to claim overseas R & D spending towards Australian tax refunds.

The firm has set up at least 50 R & D vehicles, corporate records show.

The ATO, which shares responsibility for the incentive scheme with the department, said it could not comment on Scale “due to our obligations of confidentiality under the law”.

However, speaking generally, a spokesman said the ATO was “extremely alert to schemes which seek to abuse the R & D tax incentive”.

The department also declined to comment on Scale.

Go to the Fair Work Ombudsman for more information.

Originally published as Unpaid Australians urged to come forward in Scale empire probe