Lockyer Valley farms subject of federal investigation, Operation Topaz, probing claims of worker exploitation

Several farms and agricultural producers have been put under a microscope, as authorities probe reports of alleged worker exploitation. DETAILS.

Multiple labour hire businesses around Gatton received surprise visits from the ATO, Fair Work Ombudsman and Department of Home Affairs over suspected unlawful conduct of farm workers. Photo: ATO

Farmers and labour hire providers in the Lockyer Valley are under the microscope of a joint federal task force investigating allegations of worker exploitation.

The Australia Taxation Office, Fair Work Ombudsman and Department of Home Affairs is leading the Shadow Economy Taskforce to investigate suspected unlawful conduct in the agricultural industry.

The three regulators paid several labour hire providers a surprise visit on November 26, including farms that produce broccoli, onions, pumpkins and shallots.

Operation Topaz is investigating those providers to ensure they’re complying with relevant tax, super, workplace and immigration laws.

Multiple labour hire businesses around Gatton received surprise visits from the ATO, Fair Work Ombudsman and Department of Home Affairs over suspected unlawful conduct of farm workers. Photo: ATO

A range of records were requested by the visiting inspectors and officers who also spoke with workers, managers and employers, with investigations ongoing.

ATO Assistant Commissioner Tony Goding said the regulator takes noncompliance with tax very 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 in a press release.

“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.”

Mr Goding said employers that don’t meet their obligations face firmer and faster action.

The ATO encourages anyone who suspects a business is ripping off the tax and super system or their workers, to make an anonymous report via their website.

Operation Topaz is investigating multiple labour hire providers in the Gatton area suspected of unlawful conduct. Photo: ATO

Fair Work Ombudsman Anna Booth said in a press release there had been a noticeable up tick in noncompliance among labour hire employees.

“In recent years, we have found that noncompliance in the agriculture sector has been disproportionately higher among labour hire employers,” she said.

“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.

“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.”

Department of Home Affairs Commander Ben Biddington said in a statement that Australia would not tolerate exploitation and abuse of visa programs and is committed to protecting migrant workers.

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

“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.”

Employers can check the work rights of prospective employees by using Home Affairs’ Visa Entitlement Verification online system.