The ATO raised $25 million in liabilities from the joint compliance blitz with the Fair Work Ombudsman and the Department of Home Affairs. (Source: ATO)
The Australian Taxation Office (ATO) has clawed back $25 million from taxpayers in the agriculture and labour hire industries caught doing the wrong thing. The tax office, along with the Fair Work Ombudsman and the Department of Home Affairs conducted a joint compliance blitz in the Gatton region of Southeast Queensland.
The ATO revealed it audited more than 50 taxpayers across seven locations as part of ‘Operation Topaz’, which resulted in more than $25 million in liabilities being raised. Businesses found operating outside tax law were also hit with significant penalties and interest.
ATO assistant commissioner Tony Goding said most of the taxpayers visited in the region were doing the right thing, but there were some “bad apples” in the bunch.
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“What the outcome of this operation shows is that businesses that choose to flout taxation law face serious consequences including significant financial penalties,” he said.
“As the community expects, the ATO will take action to protect workers and honest businesses when we suspect something doesn’t add up.”
It follows the ATO and Fair Work Ombudsman’s surprise visits to Darwin fast food outlets, restaurants and cafes in August to investigate suspected shadow economy activities.
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The ATO said the majority of taxpayers were doing the right thing, but there were some ‘bad apples’. (Source: ATO)
Australians have been told these blitzes are “just the beginning”, with regulators joining forces to catch out businesses trying to cheat the system by ripping off their workers and the community across the country.
“We will continue to ensure those doing the wrong thing are found out and held to account,” Goding said.
The ATO noted community tip-offs had helped uncover those doing the wrong thing, with Aussies making more than 300,000 tip-offs about tax avoidance and other dishonest behaviours since July 2019.
As part of the operation, the Fair Work Ombudsman also investigated 12 employers who were both labour hire contractors and farmers. It found 9 were non-compliant with workplace laws.
The Fair Work Ombudsman issued Compliance Notices to seven employers, recovering nearly $24,000. Breaches 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.
It also issued fines totalling nearly $18,000 to three labour hire employers for breaches related to failures to keep employee records and failure to issue pay slips on time.
Two of the investigations are ongoing.
The Fair Work Ombudsman investigated 12 employers, while the Department of Home Affairs conducted more than 423 immigration status checks. (Source: ATO)
Fair Work Ombudsman Anna Booth said the high rate of non-compliance 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,” she 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 horticulture sector is a priority for the Ombudsman, given its history of non-compliance and the large number of vulnerable workers employed on farms and orchards.
Migrants have been reminded they have the same rights and protections under the Fair Work Act as other employees in Australia. There are also protections for their visa if they call out any breaches.
Home Affairs immigration compliance officers from the Australian Border Force also conducted more than 423 immigration status checks.
Most businesses and individuals were doing the right thing, but some were referred for further scrutiny.
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