Three federal agencies have sent officers to 18 vineyards across South Australia in surprise visits to check on work law compliance.
Officers from the Australian Taxation Office (ATO), Fair Work Ombudsman (FWO) and Australian Border Force (ABF) visited vineyards in Barossa Valley, Adelaide Hills and McLaren Vale.
The ATO says the visits were to check for any illegal work practices by employers (including labour hire firms) such as underpaying wages and penalty rates, not withholding Pay as You Go Withholding (PAYGW) tax, not providing pay slips, not lodging activity statements and income tax returns, incorrect reporting of business income and expenses, and for any breaches of the Migration Act.
Officers spoke directly to workers, vineyard managers and labour hire representatives and asked for detailed records such as contracts, invoices, timesheets, pay slips and work rosters.
The visits were part of Operation Zephyr, run by a joint federal Shadow Economy Taskforce.
FEDERAL CRACKDOWN
ATO Assistant Commissioner Tony Goding says illegal work practices can significantly hurt honest viticulture operators.
“Paying workers off the books, ignoring ATO obligations or using dodgy labour hire providers doesn’t just break the law, it erodes trust in the industry,” he says.
Goding says that vineyard owners must take responsibility if they outsource their workforce.
“Vineyard owners can’t turn a blind eye
when labour hire providers cut corners.
“If the cost of labour looks impossibly cheap, there’s usually a reason and it’s rarely legal. In the end, those shortcuts don’t just exploit workers; they leave the whole industry with sour grapes.”
Goding says that the federal agencies’ visits in the state’s grape-growing regions serves as a reminder about their intent to crush illegal work practices.
“When businesses cut corners, they’re cheating their workers, gaining an unfair advantage over honest competitors and undermining the integrity of their industry,” he says.
Using sophisticated data analytics and intelligence (which includes) community tip‑offs, the three federal agencies are identifying high-risk employers, the ATO says.
Fair Work Ombudsman Anna Booth said workplace entitlements are in the spotlight.
“The wine regions of South Australia are renowned for their impressive produce but we are checking whether the pay and conditions of the employees on the ground are meeting the same high standard,” she says.
“We know there are a large number of vulnerable workers employed in grape-picking, packing and pruning vineyards. Not paying workers their entitlements cannot be part of any grower’s business model.”
Booth also says migrant workers need to remember that they have the same workplace rights under the Fair Work Act as other employees and that protections exist for their visa if they report any breaches.
ABF Commander John Taylor says migrant workers are essential to the state’s viticulture industry and regional economy.
“The message to employers is simple: do the right thing and meet your obligations,” he says.
“Exploiting vulnerable workers or misusing the visa system is unacceptable; the consequences can be serious.
“Operations like this send a clear message – Australia is not a safe haven for worker exploitation or visa abuse.”
WHAT YOU CAN DO
To find out how to report suspected tax evasion or shadow economy behaviour (including worker exploitation), visit ato.gov.au/tipoff.
For free resources and guides, visit FWO’s Find help for Agriculture page on its website.
Employers and employees can visit fairwork.gov.au, call an Infoline on 13 13 94 or access a free interpreter service on 13 14 50.
Employers can also 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.
Anyone wanting to make a report can contact Home Affairs anonymously online at Border Watch.
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