Hudson hanging on by a thread as the bad news keeps coming

Victoria’s Labour Hire Authority delivered a damning assessment of Hudson Australia’s recent operating history when it cancelled the company’s labour hire licence on Friday.

Less than 48 hours after the reconvened second creditors’ meeting voted to return the company’s control to the same people who called in the administrators ten weeks ago, LHA commissioner Steve Dargavel delivered a fatal blow to Hudson’s business in Victoria.

“Major recruitment agency has Victorian licence cancelled after directors found unfit to operate a labour hire company,” screamed the LHA’s media release.

The release listed the reasons for LHA forming the view that Hudson contravened the Labour Hire Licensing Act 2018 (Vic), as follows:

• the significant history of unlawful conduct by Hudson, including breaches of workplace, taxation, corporations and labour hire laws
• substantial unpaid debts to workers, the government and creditors, including over $8 million in unpaid superannuation and wages, and an ATO debt of over $20 million
• issues with compliance capacity, given Hudson is under external administration, is subject to active criminal proceedings from ASIC, has traded at a loss for several years, and has not demonstrated meaningful accountability or governance reform
• several transactions were identified by the company administrator as likely representing breaches of directors’ duties, including forgiveness of $11 million in debts owed by related companies
• failure to declare its CEO and other executives as decision-makers within the company, in contravention of the Act.

The cancellation takes effect on 10 July.

Hudson is the LHA’s first major scalp after stronger labour hire licensing laws took effect in Victoria on 1 June 2026, including a more stringent ‘fit and proper person’ test.

Dargavel’s prompt action after control of the company was returned to the existing executives indicated his eagerness to flex the LHA’s enhanced powers due to the increased legal compliance requirements, and financial viability‘ benchmarks that form part of the ‘fit and proper person’ assessment.

Dargavel did not mince his words in the LHA’s media release, offering a range of withering comments about the conduct of Hudson’s owners.

“We found it unacceptable – as I’m sure competent businesses would – for Hudson to continue to make a mockery of the legal obligations everyone else must comply with. Enough is enough.

“The administrator’s recommended way forward extinguishes claims against the company by workers and other creditors, likely reducing workers’ ability to recover what they’re owed.”

“While the company administrator says Hudson can trade its way out of this situation, based on the company’s history and the evidence provided, I’m not satisfied that’s the case.”

“Through its conduct, Hudson has badly let down its workforce, customers, creditors and the wider community. I have concluded greater harm would likely arise if Hudson continued to operate.”

The ATO has said Hudson currently owes $3.8 million in super, as of March and $21.5 million in taxes.

The AFR reported that Victoria generates $39 million in annual revenue for Hudson from on-hire assignments, or 15 per cent of its total contracting revenue, according to the WLP Restructuring’s report.

As of May, according to the AFR, Hudson provided 300 workers to Victoria, including critical roles across state departments and agencies such as state revenue, health, justice, corrections and the Victorian Civil and Administrative Tribunal.

The LHA said it had notified state government departments about the cancellation to provide an opportunity to make alternative arrangements for the continuity of Hudson’s on-hire employees.

In a report to the second creditors’ meeting on 24 June, the administrators summarised the reasons for the company’s failure as; declining revenue leading to ongoing operating losses, significant PAYG non-compliance and historical failure to correctly report and remit PAYG.

The ATO, which voted against the proposal to return the company’s control to the existing executives, alleges that Hudson’s forgiveness of $11 million in loans in the lead-up to the administration was also a significant contributing factor, including a $7 million loan to Hudson’s holding company, Apache.

On the day of the reconvened second creditors’ meeting, the Fair Work Commission signed a three-year procurement contract with Hudson for staff worth $172,672, according to the AFR.

The Victorian LHA’s decisive action and damning commentary will put pressure on the other jurisdictions that require providers of on-hire staff to hold a labour hire licence to review Hudson’s fitness to hold such a licence.

Of those jurisdictions, the ACT and Queensland are of primary concern to Hudson, as they represent by far the company’s two largest contractor markets.

Regardless of how quickly those respective LHAs act, or if they act at all, the Victorian LHA may have delivered a fatal blow to the lingering hopes that Hudson could trade its way back to health.

Related blogs

Mistakes, bad timing and bad luck: A timeline of Hudson Australia’s slide into administration

Collar creditors stuck between a rock and a hard place

Fifth CEO of Ignite chairman’s nine year tenure (hmm, who might be the problem?)

Australia’s worst directors culpable as Rubicor collapses