Eateries grilled as FWO and ATO inspect Gold Coast food outlets
This is a joint media release from the Fair Work Ombudsman (FWO) and Australian Taxation Office (ATO).
Gold Coast fast food outlets, restaurants and cafés have received surprise visits from the Fair Work Ombudsman (FWO) and the Australian Taxation Office (ATO) this week.
Operation Crimson involved the two regulators inspecting about 25 eateries, in Nerang and surrounding suburbs, to check they are paying employees correctly, and complying with record-keeping, tax and super laws. The federal agencies also visited some Broadbeach businesses the FWO had previously inspected.
The targeted inspections were based on factors such as anonymous reports to the FWO from employees, a history of non-compliance, or employment of vulnerable workers such as visa holders.
Fair Work Ombudsman Anna Booth said ensuring food sector employers are paying workers all they are owed and meeting their record-keeping obligations is a priority for the FWO.
“Improving compliance with workplace laws in the fast food, restaurants and cafés industry is a priority for us, as the sector employs many workers who can be vulnerable to exploitation, such as visa holders and young people,” Ms Booth said.
“These Gold Coast inspections combine first-time visits to many employers and revisits to some others, and are part of our efforts to ensure any who are doing the wrong thing are found out and held to account.
“Workers must receive all owed wages and superannuation.
“It’s also important for visa holders in the sector to know they have the same workplace rights as all other workers and are encouraged to reach out to us for assistance.”
ATO Assistant Commissioner Tony Goding said cooking the books by ripping off your workers or dodging your tax and super obligations doesn’t pass the pub test.
“Fast food outlets, cafés and restaurants operating in the shadow economy deliberately disadvantage honest businesses, short-change the community and steal from their employees’ futures,” Mr Goding said.
“That’s why we’ve been out and about on the Gold Coast this week with the Fair Work Ombudsman to investigate.”
Mr Goding noted that Operation Crimson has revealed a number of concerning practices.
“If you run a business, take this as your warning that you can’t get away with exploiting your workers or ripping off the community,” Mr Goding said.
“At the ATO we have a range of sophisticated methods to detect shadow economy activities and we also work closely with our partner agencies like the Fair Work Ombudsman to catch out those doing the wrong thing, including regularly sharing intelligence and community tip-offs.
“Where we discover deliberate wrongdoing, significant penalties will apply.”
Investigations are continuing.
For the FWO, Operation Crimson is part of its national Food Precincts Program of surprise inspections of fast food outlets, restaurants and cafés, commonly in “cheap eats” precincts.
The Fair Work Ombudsman previously recovered more than $215,700 in wages for nearly 450 underpaid workers after auditing 50 Gold Coast eateries in and around Southport and Broadbeach in 2020 – with 88 per cent of those businesses non-compliant with workplace laws.
The FWO secured more than $16 million in court-ordered penalties against employers in the fast food, restaurants and cafés sector nationally in 2024-25.
These penalties included the FWO’s largest ever penalty of $15.3 million against the former operators of Sushi Bay outlets, for deliberately exploiting vulnerable migrant workers.
The FWO has targeted information for employers and employees in the fast food, restaurants and cafés industry, and any franchisees. They can also use FWO’s pay calculator and Small Business Showcase.
Employers and employees can visit www.fairwork.gov.au or call the Fair Work Infoline on 13 13 94 for free advice and assistance about their rights and obligations in the workplace. A free interpreter service is available on 13 14 50. Issues can also be reported anonymously if they prefer. Information for migrant workers, including on protections for visas, is available at our visa holders and migrants webpage.
Workplace issues can be reported to the FWO online anonymously, including in languages other than English. Employees can also seek information from their union, if they are a member, or from their employer. Employers can seek information from their employer association if they are a member.
To find out how to report suspected tax evasion or shadow economy behaviour, including worker exploitation, visit ato.gov.au/tipoff.
Notes to journalists
- Photos and videos from Operation Crimson are available for download from the ATO media centre:
- 16x9 videos:
- 9x16 videos:
- A media grab of Fair Work Ombudsman Anna Booth discussing Operation Crimson is available also from the ATO media centre.
- A high-resolution headshot of Fair Work Ombudsman Anna Booth is available from the Fair Work Ombudsman Newsroom.
- A high-resolution headshot of ATO Assistant Commissioner Tony Goding is available from the ATO media centre.
- Media grabs of ATO Assistant Commissioner Tony Goding discussing the shadow economy are available from the ATO media centre.
- Interviews are available with the Chair of the Shadow Economy Taskforce, ATO Assistant Commissioner Tony Goding, on request to the ATO Media Unit (mediaunit@ato.gov.au).
- ATO file footage is available for download and use in news bulletins from the ATO media centre.
