Together with the Fair Work Ombudsman, the Department of Home Affairs and Australian Border Force, the ATO has launched Operation Flint.
The operation focuses on investigating labour hire providers to protect workers in the agricultural industry.
Current investigations are focused on the horticulture sector in Griffith, NSW.
They are designed to uncover unlawful practices including underpaying entitlements, including penalty rates, wages and super, and non-compliance with tax and super obligations.
Also targeted will be those who fail to lodge their activity statements and tax returns, or fail to supply accurate pay slips to workers.
Migrant worker exploitation is also a key focus of the investigation.
“Griffith is one of Australia’s most productive growing regions and there’s no room for operators cutting corners or exploiting honest growers,” ATO Assistant Commissioner Tony Goding said.
“We’re seeing labour hire practices that simply don’t stack up. Operation Flint is sparking action to bring those arrangements into line.”
Mr Goding added that farmers had a responsibility to be aware of where their labour was coming from.
“Outsourcing labour doesn’t mean outsourcing responsibility. Farmers need to know exactly who they’re dealing with and how their workforce is being paid and treated. If the cost of labour is unusually cheap, there’s usually a reason behind it,” he said.
Employers can check the work rights of prospective employees by using Home Affairs’ Visa Entitlement Verification Online system to ensure they do not unintentionally allow illegal work.
Individuals and businesses can face significant penalties for each worker employed without valid work rights.
This includes workers engaged through labour hire and recruitment providers.
Investigations are ongoing.
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