Agricultural
10 December, 2024
Farm worker exploitation being investigated
Federal government agencies have joined forces to investigate labour hire providers suspected of unlawful conduct in the agriculture industry through surprise visits to the Gatton area.
The Australian Taxation Office (ATO), Fair Work Ombudsman (FWO) and Department of Home Affairs have formed the Shadow Economy Taskforce.
On 26 November, the three regulators visited seven 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,” he said.
“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.
“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 ato.gov.au/tipoff
