This is a joint media release from the Australian Taxation Office (ATO), Fair Work Ombudsman (FWO) and Department of Home Affairs' Australian Border Force (ABF).
The Australian Taxation Office (ATO), Fair Work Ombudsman (FWO) and Department of Home Affairs' Australian Border Force (ABF) have ramped up their compliance efforts across South Australia's (SA's) wine regions, conducting coordinated unannounced inspections targeting vineyard owners and labour hire providers.
The 3 regulators recently carried out surprise compliance visits to 18 vineyards in Barossa Valley, Adelaide Hills and McLaren Vale as part of Operation Zephyr, an operation under the Shadow Economy Taskforce.
Investigations are focused on finding any unlawful practices by employers of seasonal vineyard workers, like labour hire providers, including:
- underpaying wages, penalty rates and other entitlements including super
- non-compliance with tax, super and registry obligations
- failing to withhold and remit Pay as You Go Withholding (PAYGW) tax
- failing to provide pay slips to workers
- non-lodgment of activity statements and income tax returns
- incorrect reporting of business income and expenses
- breaches of obligations under the Migration Act including migrant worker exploitation and unlawful provision of immigration assistance.
Officers from all 3 agencies spoke directly with workers, vineyard managers and labour hire providers and requested detailed records including any labour hire contracts, invoices, timesheets, pay slips and work rosters. Investigations are ongoing.
ATO Assistant Commissioner Tony Goding said unlawful labour practices can cause significant disadvantage to honest operators in the viticulture industry.
'Paying workers off the books, ignoring ATO obligations or using dodgy labour hire providers doesn't just break the law, it erodes trust in the viticulture industry which employs thousands of people across Australia,' Mr Goding said.
Mr Goding emphasised that vineyard owners must take responsibility if outsourcing their workforce.
'Vineyard owners can't turn a blind eye when labour hire providers cut corners. If the cost of labour looks impossibly cheap, there's usually a reason and it's rarely legal. In the end, those shortcuts don't just exploit workers; they leave the whole industry with sour grapes.'
Regulators have zero tolerance for employers deliberately disregarding their obligations.
'Our work in South Australia's grape-growing regions shows we are serious about crushing illegal labour hire practices to ensure a fair go for honest providers.
'When businesses cut corners, they're cheating their workers, gaining an unfair advantage over honest competitors and undermining the integrity of their industry.'
Using sophisticated data analytics and intelligence shared by partners in the Shadow Economy Taskforce, including community tip offs, the ATO, FWO and ABF are actively identifying high-risk employers.
Fair Work Ombudsman Anna Booth said workplace entitlements are under the spotlight.
'The wine regions of South Australia are renowned for their impressive produce, but we are checking whether the pay and conditions of the employees on the ground are meeting the same high standard,' Ms Booth said.
'The agriculture sector is a priority for the Fair Work Ombudsman and viticulture is an important part of that focus. We know there are a large number of vulnerable workers employed in grape-picking, packing, and pruning vineyards. Not paying workers their entitlements cannot be part of any grower's business model.
'Migrant workers must remember that they have the same workplace rights under the Fair Work Act as other employees in Australia, and protections exist for their visa if they call out any breaches to us.
'These SA investigations are part of the FWO's continuing work with other regulators, such as the ATO and the Department of Home Affairs, to detect, disrupt and deter non-compliance with workplace laws nationally.'
ABF Commander John Taylor said migrant workers are essential to South Australia's viticulture industry and regional economy.
'There's no place for employers who exploit them - our communities expect better, and so do we,' Commander Taylor said.
'The message to employers is simple: do the right thing and meet your obligations.
'Exploiting vulnerable workers or misusing the visa system is unacceptable, and the consequences can be serious.
'Operations like this send a clear message - Australia is not a safe haven for worker exploitation or visa abuse.
'Regional communities don't want this in their backyard, and their information is crucial in stopping it, especially in agriculture and viticulture sectors.'
To find out how to report suspected tax evasion or shadow economy behaviour, including worker exploitation, visit ato.gov.au/tipoff.
For free resources including information on pay and piece rates, keeping the right records, and guides to self-auditing and labour contracting, visit FWO's Find help for Agriculture page on its website which includes a Wine Industry Award section. Employers and employees can also visit fairwork.gov.au, call the FWO Infoline on 13 13 94 or access a free interpreter service by calling 13 14 50.
Employers can also check the work rights of prospective employees by using Home Affairs' Visa Entitlement Verification Online system to ensure they do not unintentionally allow illegal work. Anyone with information relating to potential immigration offences or suspicious activity is encouraged to contact Home Affairs and make a report online at Border Watch. Reports can be made anonymously.
Notes to journalists
- Photos and videos from Operation Zephyr are available for download from the ATO media centre.
- Landscape image:
- Portrait images:
- Video
- A high-resolution headshot of ATO Assistant Commissioner Tony Goding is available from the ATO media centre.
- A high-resolution headshot of Fair Work Ombudsman Anna Booth is available from the Fair Work Ombudsman Newsroom.
- A high-resolution headshot of ABF Commander John Taylor is available from the ATO media centre.
- Media grabs of Fair Work Ombudsman Anna Booth discussing Operation Zephyr are available from the ATO media centre.
- Media grabs of ATO Assistant Commissioner Tony Goding discussing the shadow economy are available from the ATO media centre.
