Phil is an experienced backhoe operator. His family company, Phil & Jill Pty Ltd owns a 10-tonne truck and a backhoe. Phil & Jill Pty Ltd enters into a contract with the Main Roads Department to dig trenches for laying sewerage pipes. The contract specifies that Phil & Jill Pty Ltd supplies a tractor with a backhoe and other special attachments, together with a licensed backhoe operator to work at specific locations.

Phil transports the backhoe on the truck to various construction sites at the request of the Main Roads Department. He then uses the backhoe to dig the trenches. The contract requires Phil & Jill Pty Ltd to provide specific plant and equipment to do the work. Without the backhoe and the truck, Phil & Jill Pty Ltd would not be able to gain or produce income.