The Australian Taxation Office (ATO), Fair Work Ombudsman (FWO) and Department of Home Affairs have joined forces under the Shadow Economy Taskforce to investigate labour hire providers suspected of unlawful conduct in the agriculture industry through surprise visits in the Gatton region in Southeast Queensland.
On 26 November, the 3 regulators visited 7 locations, including farms that produce broccoli, onions, pumpkins and shallots, as part of Operation Topaz.
The ATO, FWO and Department of Home Affairs are investigating farmers and labour hire providers to ensure they are complying with relevant tax, super, workplace and immigration laws, including whether:
- super guarantee is being paid to eligible employees
- employers are correctly withholding tax from payments made to workers and paying those amounts to the ATO
- employers are paying workers their correct wages and entitlements, keeping accurate records and issuing lawful pay slips
- workers are being correctly engaged as employees or contractors
- employers and migrant workers are complying with their responsibilities and obligations under the Migration Act.
Inspectors and officers on site spoke to workers, managers and employers, requesting a range of records, with investigations ongoing.
ATO Assistant Commissioner Tony Goding said the ATO takes non-compliance with tax and super seriously.
‘The shadow economy involves activities such as paying workers cash-in-hand to avoid obligations, paying wages below award rates and not paying workers’ other entitlements. Businesses that engage in the shadow economy are deliberately undercutting their competitors, gaining an unfair advantage in their industry and stealing from their employees’ futures.’
Employers that do not meet their obligations face firmer and faster action.
If farmers are using a labour hire business to engage workers, they need to ensure they are protecting their workers’ welfare and that labour hire operators are not just lining their own pockets.
‘The ATO has zero tolerance for employers who are not doing the right thing. We’re committed to ensuring dodgy practices in the labour hire and agriculture industries are a thing of the past and this week’s action in Gatton proves it,’ Mr Goding said.
The ATO has a range of methods including sophisticated data analytics to uncover shadow economy activities in the community. Partner agencies in the Shadow Economy Taskforce regularly share intelligence and community tip-offs. Combined, these helped shine the light on worker exploitation uncovered as part of Operation Topaz.
‘If you think a business is ripping off the tax and super system or their workers, you can report it. Making a tip-off to the ATO only takes a few minutes and you can remain anonymous.’
To find out how to report suspected tax evasion or shadow economy activity visit www.ato.gov.au/tipoff .
