AUSTRALIA | ATP and FWO agents have joined forces to ensure food and hospitality businesses in Darwin are operating correctly and not cooking the books.
This week the Australian Taxation Office (ATO) and Fair Work Ombudsman (FWO) joined forces to conduct a series of surprise visits to food sector and hospitality businesses in Darwin. The visits related to suspected shadow economy activities, including worker exploitation and alcohol excise avoidance.
Between 26 and 28 August, the two regulators visited more than 30 businesses, including fast food outlets, restaurants and cafés, as part of Operation Sentinel.
ATO Assistant Commissioner Tony Goding said the joint ATO and FWO actions in Darwin were driven by the Shadow Economy Taskforce, a joint-agency taskforce responsible for addressing and protecting the community from shadow economy behaviour.
“We’ve visited more than 30 businesses this week in Darwin who were suspected of unlawfully taking advantage of their workers and/or avoiding their tax and super obligations,” Goding said.
The ATO, alongside FWO, acted on valuable information and tip-offs received from the community, including workers, to conduct the visits and remind the businesses under investigation of their tax (including excise), super and employer obligations. Investigations are continuing.
“If you run a business, don’t think you can get away with exploiting your workers or ripping off the community, as we have a range of sophisticated methods to uncover shadow economy activities. We also work closely with our partner agencies like the FWO to catch those doing the wrong thing,” said Goding.
“Cooking the books by ripping off your workers and dodging your tax and super obligations doesn’t pass the pub test. Businesses that engage in the shadow economy are deliberately undercutting their competitors, gaining an unfair advantage over honest businesses doing the right thing and stealing from their employees’ futures. We will find out about it and take action.”
Goding added that there are serious consequences for non-compliance, including fines and penalties for businesses that engage in shadow economy behaviours at the expense of their employees.
The ATO and FWO are investigating businesses in and around Darwin suspected of paying workers cash-in-hand to avoid legal obligations, paying employees wages below rates and not paying their other entitlements, including superannuation, under-reporting or omitting income, compliance issues with reporting and record-keeping, including pay slips, and avoiding alcohol excise obligations.
Fair Work Ombudsman Anna Booth said protecting workers’ rights and holding food sector employers to account is a priority for the FWO.
“Improving compliance in the fast food, restaurants and cafés industry is a priority for us, including protecting the sector’s many visa holders and young workers who can be vulnerable. The Operation Sentinel investigations in Darwin are part of our efforts to ensure those who are doing the wrong thing are being found out and held to account,” said Booth.
“Fast food, restaurant and café 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.”
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