ATO, FWO, Home Affairs wrap up ‘compliance blitz’, Operation Topaz

The Tax Office has revealed the wrapping up of Operation Topaz, with the compliance investigation raising $25 million in liabilities across the Gatton region.

The compliance investigation into agriculture and labour hire industries in the Gatton region of Queensland, Operation Topaz, has officially been wrapped up by the Australian Taxation Office (ATO), Fair Work Ombudsman (FWO), and Department of Home Affairs.

Operation Topaz is an investigation under the Shadow Economy Taskforce and investigates labour hire providers suspected of unlawful conduct in the agriculture industry.

In a joint statement, the three bodies revealed the “compliance blitz” was facilitated by community tip-offs and shared intelligence, which helped uncover the exploitation.

For the ATO’s compliance outcomes within the investigation, audits were completed on more than 50 taxpayers across seven locations, which led to liabilities of more than $25 million having been raised.

Those found by the ATO to have been doing the wrong thing could also expect to be hit with significant penalties and interest, the Tax Office said.

However, ATO Assistant Commissioner Tony Goding said the majority of taxpayers visited under Operation Topaz were compliant and required no action from the ATO.

“It’s great to see that, in relation to tax laws, most of the agriculture and labour hire businesses in the region are doing the right thing and supporting fair practices. But it’s clear that there are some bad apples who are trying to cheat the system by ripping off workers and the community,” he said.

“What the outcome of this operation shows is that businesses that choose to flout taxation law face serious consequences, including significant financial penalties.”

Goding also noted the ATO would take action to protect workers and honest businesses when foul play was suspected.

Operation Topaz saw the FWO investigate 12 employers, both labour hire contractors and farmers, with nine of them having been found non-compliant with workplace laws.

Of the 12, eight were labour hire providers, all of which were found to be non-compliant, while only one of the four grower employers investigated was found to be non-compliant.

From this, the FWO issued eight compliance notices to seven employers, recovering nearly $24,000 from five employers for 67 workers.

These notices included multiple contraventions such as failure to pay casual minimum and overtime rates, failure to pay public holiday rates, as well as failure to provide a Fair Work Information Statement and Casual Employment Information Statement to employees.

In addition to this, infringement notices were also issued by the FWO, which totalled nearly $18,000 to three labour hire employers for “breaches relating to failure to make and keep required employee records and failure to issue pay slips to employees within one working day of payment”.

FWO Anna Booth said two of the investigations remained ongoing, yet the high rate of non-compliance with workplace laws among labour hire providers was “disappointing”.

“The FWO’s investigation has 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 Fair Work Ombudsman results underline the continuing need for collaboration among regulators and employer groups to create a culture of compliance.”

Also within the investigation was the Department of Home Affairs, which conducted more than 423 immigration status checks through immigration compliance officers from the Australian Border Force (ABF).

The businesses and individuals looked at by ABF were compliant and doing the right thing, but a lot of checks led to various referrals to partner agencies for further scrutiny.

John Taylor, ABF commander, said it was a pleasing outcome and demonstrated the collaborative partnership and interoperability among partner agencies in coming together to tackle cross-portfolio objectives.

Taylor also reminded employers that Australia would not tolerate exploitation and abuse of its visa programs and was committed to protecting migrant workers.

“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,” he said.

“It remains 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.”

Goding shared that Operation Topaz and other operations, such as Operation Sentinel happening in Darwin right now, were “just the beginning” and regulators would continue to join forces to expose businesses that may be ripping off their workers and cheating the community.

“Businesses operating in the shadow economy aren’t just breaking the law. They’re undercutting honest businesses and stealing from their employees’ futures,” Goding said.

“We will continue to ensure those doing the wrong thing are found out and held to account.”