Company faces court over alleged JobKeeper cashback ‘scam’
A Queensland transport business faces court for allegedly requiring a bus driver to repay almost $6000 in JobKeeper payments.
The Fair Work Ombudsman has taken legal action against the operator of a Queensland transport business over allegations he unlawfully required a bus driver to repay him almost $6000 in JobKeeper payments.
Facing court is Khan Andrew Buchanan, a sole trader who operates RiverCity Bus Service, a school and charter bus business servicing passengers in and around the Brisbane and Logan areas.
Between March and September 2020, Mr Buchanan received fortnightly $1500 JobKeeper payments from the Federal Government for the driver, initially transferring the payments in full to the driver’s bank account.
But Mr Buchanan allegedly required the driver to pay back each week an amount equal to the difference between the net JobKeeper payment and the wages he received for hours worked in the previous week.
The FWO alleged Mr Buchanan unlawfully required the driver to repay him a total of $5805 in JobKeeper payments.
Mr Buchanan also allegedly committed a further breach of the Fair Work Act when he received a $1500 JobKeeper payment in September 2020 but paid the driver only $1035.60.
Mr Buchanan backpaid the driver $6270.40 after being contacted by Fair Work Inspectors.
Fair Work Ombudsman Sandra Parker said the regulator was prepared to take action to “uphold the integrity of government programs”.
“Cashback allegations are treated particularly seriously by the Fair Work Ombudsman and we will not tolerate any employers unlawfully requiring workers to pay back any of their wages or entitlements,” she said.
The FWO is seeking court-imposed penalties against Mr Buchanan, and he faces maximum penalties totalling $26,640 for two alleged contraventions of the Fair Work Act.
A directions hearing has been listed in the Federal Circuit and Family Court in Brisbane on
September 20 2021.
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