‘Shadow Economy Taskforce’ investigating allegations of farm worker exploitation

According to a joint media release, the Australian Taxation Office (ATO), the Fair Work Ombudsman (FWO), and the Department of Home Affairs are investigating labour hire providers suspected of unlawful conduct.

The ATO, FWO, and the Department of Home Affairs have joined forces under the Shadow Economy Taskforce to investigate suspected unlawful conduct in the agriculture industry.

On 26 November, the three regulators visited a total of seven locations, including farms that produce broccoli, onions, pumpkins and shallots, as part of Operation Topaz. The three regulators are investigating farmers and labour hire providers to ensure they are complying with the following:

• 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.

“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,” said ATO Assistant Commissioner Tony Goding.

“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.”

The three regulators strongly proclaimed that employers who do not meet their obligations will face firmer and faster action.

“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,” said Goding.

Speaking on the Shadow Economy Taskforce, Fair Work Ombudsman Anna Booth said: “We’re pleased to be joining forces with our ATO and Home Affairs colleagues to enhance our regulatory coverage and hold employers to account in the agriculture sector, a priority area for us.

“In recent years, we have found that non-compliance in the agriculture sector has been disproportionately higher among labour hire employers. These Operation Topaz investigations are part of our efforts to ensure those who are doing the wrong thing are being found out and held to account.

“Farm workers with concerns about their pay or entitlements are urged to come forward to directly seek our assistance. They can report issues anonymously if they prefer.”

Booth put some responsibility on farmers and agriculture sector employers to ensure that they are not engaging dodgy labour hire providers who often fail to meet the obligations listed above.

“We also want to let agriculture sector employers know that they have a responsibility to ensure they are not engaging dodgy labour hire providers – if the cost of the contract is ‘too good to be true’, then it is probably unlawful, and employers have no excuse when they can use the free tools and resources available in our Horticulture Showcase,” said Booth.

Department of Home Affairs commander for field operations and sponsor monitoring Ben Biddington said Australia would not tolerate exploitation and abuse of its visa programs, highlighting their commitment to protecting migrant workers, who are often taken advantage of.

“Home Affairs immigration compliance officers work with agencies such as the ATO and FWO, visiting the regions to speak to employers and employees as part of Australia’s commitment to tackling criminal exploitation and misuse of its visa system.

“As part of that commitment, the officers undertake compliance and enforcement operations under immigration law to stop the exploitation of migrant workers. It is 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.

“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,” said Biddington.

Similar to Booth, Biddington put the onus on employers, explaining that it’s never been easier for them to check the working rights of their prospective employees.

“At the same time, it’s never been easier for employers to do the right thing: they are able to 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,” said Biddington.