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ATO media release

Operation Resonance: ATO and FWO return to hospitality sector

Australian Taxation Office

This is a joint media release from the Australian Taxation Office (ATO) and Fair Work Ombudsman (FWO).

The Australian Taxation Office (ATO) and Fair Work Ombudsman (FWO) returned to Melbourne’s hospitality sector this week as part of Operation Resonance, an operation featuring a series of surprise visits to businesses suspected of not paying employees correctly and operating outside the tax and super system.

The 3-day operation in Melbourne’s CBD follows intelligence gathered from community tip-offs, data matching and previous compliance activities. ATO and FWO officers joined forces to visit more than 30 businesses, as part of broader efforts under the Shadow Economy Taskforce to protect honest businesses from unfair competition and ensure employees receive their correct entitlements.

ATO Assistant Commissioner Julia Webb said most hospitality businesses try to do the right thing and the ATO is focused on the minority who deliberately avoid their tax and super obligations, undercutting their employees and their competition.  

‘Most café, restaurant and takeaway operators work hard, compete fairly and meet their obligations. But there are still some businesses that think they can stay under the radar by hiding income, paying workers cash-in-hand or failing to meet their super obligations.’

‘Operation Resonance sends a clear message: the ATO is shining a spotlight on businesses operating in the shadows, and we're taking action.’

‘When businesses cut corners, it's not just the tax system that is affected. Honest competitors are put at a disadvantage, and workers can miss out on important entitlements like super,’ Ms Webb said.

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.

‘Fair Work Inspectors have been on the ground in Melbourne this week checking compliance, ready to enforce the law. We have consistently found fast food, restaurant and café employers across the nation to be at high risk of non-compliance,’ Ms Booth said.

‘Stamping out underpayments in this sector remains a priority for the Fair Work Ombudsman. We know the sector engages a large number of vulnerable workers such as visa holders and young workers. To visa holder workers, including international students, we say direct - you have the same workplace rights as all other employees in Australia, and protections exist for your visa if you call out for help.’

‘To food sector workers in Melbourne, if you need help, we urge you to come forward for assistance. Employers - we want you to get it right in the first place and we’ve been providing education during these activities to help you meet your obligations.’

While investigations are ongoing, information gathered through Operation Resonance will inform future compliance action, including audits, reviews and potential enforcement activity if serious non-compliance is identified.

‘The message for businesses is simple: if you've made mistakes, engage with us early. If you're deliberately avoiding your obligations, we're equipped with more data, intelligence and community information than ever before,’ Ms Webb said.

Anyone with information about suspected tax evasion or shadow economy behaviour including worker exploitation can report this to the ATO through ato.gov.au/tipoff.

In the fast food, restaurant and cafes sector, the FWO recovered more than $5.6 million for 3,538 workers in 2025–26.

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 can obtain free written advice through our Employer Advisory Service.

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.

Notes to journalists


Contact details:

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