Fair Work Ombudsman
At a glance
- $350,000
What happened
The Australian Taxation Office (ATO) and Fair Work Ombudsman (FWO) conducted surprise visits to over 30 food sector and hospitality businesses in Darwin between August 26 and 28, 2025. This was part of Operation Sentinel, targeting suspected shadow economy activities. The investigations were prompted by community information and tip-offs. Businesses visited included fast food outlets, restaurants, and cafés.
What was decided
The ATO and FWO are investigating businesses for alleged non-compliance, including paying workers cash-in-hand, paying below award rates, failing to pay superannuation, underreporting income, and avoiding alcohol excise obligations. Investigations are ongoing. The regulators emphasized that businesses engaging in these practices face fines and penalties.
What it means for employers
Employers in the food and hospitality sector should ensure they are complying with all legal obligations regarding worker pay, entitlements (including superannuation), and tax. The ATO and FWO are actively investigating businesses suspected of exploitation and tax avoidance, and will take action against those who do not comply.
What it means for employees
Fast food, restaurant, and café workers, particularly visa holders and young workers, are encouraged to report any concerns about their pay or entitlements to the Fair Work Ombudsman. The FWO prioritizes protecting worker rights and holding employers accountable.
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