This is a joint media release from the Australian Taxation Office (ATO), Fair Work Ombudsman (FWO) and Department of Home Affairs.
The Australian Taxation Office (ATO), Fair Work Ombudsman (FWO) and Department of Home Affairs have wrapped up Operation Topaz, a joint compliance blitz of the agriculture and labour hire industries in the Gatton region in Southeast Queensland.
ATO compliance outcomes
The ATO completed audits on more than 50 taxpayers across the 7 locations which led to liabilities of more than $25 million being raised. Those businesses caught doing the wrong thing will also be hit with significant penalties and interest.
ATO Assistant Commissioner Tony Goding noted the majority of taxpayers visited were compliant and required no action from the ATO.
'It's great to see that, in relation to tax laws, most of the agriculture and labour hire businesses in the region are doing the right thing and supporting fair practices. But it's clear that there are some bad apples who were trying to cheat the system by ripping off workers and the community.'
'What the outcome of this operation shows is that businesses that choose to flout taxation law face serious consequences including significant financial penalties. As the community expects, the ATO will take action to protect workers and honest businesses when we suspect something doesn't add up,' Mr Goding said.
FWO compliance outcomes
The FWO has investigated 12 employers (both labour hire contractors and farmers), with 9 found to be non-compliant with workplace laws. All 8 labour hire providers investigated were found to be non-compliant with workplace laws. Of the 4 grower employers investigated, 1 was found to be non-compliant.
The FWO issued 8 Compliance Notices to 7 employers, recovering nearly $24,000 from 5 employers for 67 workers. Contraventions set out in these notices related to failure to pay casual minimum and overtime rates, failure to pay public holiday rates, and failure to provide a Fair Work Information Statement and Casual Employment Information Statement to employees. All bar 1 of the 67 workers were employed by a labour hire employer.
The FWO also issued Infringement Notices (fines) totalling nearly $18,000 to 3 labour hire employers, for breaches relating to failure to make and keep required employee records and failure to issue pay slips to employees within 1 working day of payment.
Two of the FWO investigations remain ongoing.
Fair Work Ombudsman Anna Booth said the high rate of non-compliance with workplace laws among labour hire providers was disappointing.
'The Fair Work Ombudsman's investigations have led to back-payments for 67 workers in the Gatton region. While we welcome the recoveries, we expect labour hire employers to do better in the first place,' Ms Booth said.
'Labour hire employers must focus on meeting the wage and other legal obligations to their workers, and we'll continue to hold them to account. Failure to keep records and issue pay slips can mean the workers have no visibility as to whether they are being paid correctly.
'The Fair Work Ombudsman's results underline the continuing need for collaboration among regulators and employer groups to create a culture of compliance.
'The horticulture sector is a priority for the FWO, given its history of non-compliance with workplace laws and large proportion of vulnerable workers employed on farms and orchards,' Ms Booth said.
Ms Booth reminded migrant workers that they have the same rights and protections under the Fair Work Act as other employees in Australia, and protections exist for their visa if they call out any breaches.
The FWO has a Horticulture Showcase on its website, with resources available to employers and employees in the sector, including information on pay and piece rates, and keeping the right records. It also offers an Infoline and Employer Advisory Service, for tailored, written advice to employers.
Home Affairs compliance outcomes
Meanwhile, Home Affairs immigration compliance officers from Australian Border Force (ABF) conducted more than 423 immigration status checks.
ABF Commander John Taylor said most businesses and individuals looked at by ABF were compliant and doing the right thing, although a number of checks led to various referrals to partner agencies for further scrutiny.
Commander Taylor said that this was a pleasing outcome and demonstrates the collaborative partnership and interoperability for partner agencies to come together to tackle cross-portfolio objectives.
The agricultural industry remains a focus for ABF; Commander Taylor reminded employees that Australia will not tolerate exploitation and abuse of its visa programs and is committed to protecting migrant workers.
'Migrant workers play a key part in the economy, particularly in remote and regional communities. There is no place in Australia for employers who exploit them.'
He said ABF officers regularly worked with other agencies such as the ATO and FWO to visit regions to speak to employers and employees as part of Australia's commitment to tackling criminal exploitation and misuse of its visa regime.
It remains a criminal offence to employ, refer, coerce or contract a non-citizen who doesn't have the right to work in Australia. Employers face penalties for allowing illegal work.
It's never been easier for employers to do the right thing: they can check the work rights of prospective employees by using Home Affairs' Visa Entitlement Verification Online system to ensure they do not inadvertently allow illegal work.
What's next?
Operation Topaz and Operation Sentinel (an investigation in Darwin targeting fast food outlets, restaurants and cafés) are just the beginning. Regulators are joining forces to expose businesses that may be ripping off their workers and cheating the community, all over the country.
Businesses operating in the shadow economy aren't just breaking the law. They're undercutting honest businesses and stealing from their employees' futures.
'We will continue to ensure those doing the wrong thing are found out and held to account,' said Mr Goding.
Tip-offs make a difference
Community tip-offs and shared intelligence helped uncover the exploitation at the heart of Operation Topaz. In fact, reports surged in Gatton after the operation.
'If you think a business is ripping off the tax and super system or their workers, report it. It only takes a few minutes and you can remain anonymous.'
'You're not alone in tipping-off suspicious behaviour. Since July 2019, Australians have made over 300,000 tip-offs about tax avoidance and other dishonest behaviours to the ATO,' Mr Goding said.
To find out how to report suspected tax evasion or shadow economy activity visit www.ato.gov.au/tipoff.
