Melbourne Hospitality Businesses Face Surprise Tax and Wage Inspections
More than 30 hospitality businesses in Melbourne’s CBD have been visited by Australian Taxation Office (ATO) and Fair Work Ombudsman (FWO) officers as part of a crackdown on suspected tax evasion and employee underpayments.
The three-day operation, known as Operation Resonance, targeted businesses suspected of paying workers incorrectly, hiding income or failing to meet tax and superannuation obligations.
The inspections followed intelligence gathered through public tip-offs, data analysis and previous compliance activities. The operation forms part of the federal government’s Shadow Economy Taskforce, which aims to protect workers and businesses that follow the law.
ATO Assistant Commissioner Julia Webb said most hospitality operators meet their legal obligations, but some deliberately avoid paying the correct tax and superannuation. She warned that such practices disadvantage honest businesses and leave employees without their full entitlements.
Fair Work Ombudsman Anna Booth said the food industry remains a high-risk sector for workplace non-compliance. Inspectors focused on wages, employee entitlements and proper record-keeping during the Melbourne visits.
Ms Booth also reminded employers that visa holders, including international students, have the same workplace rights as other employees in Australia. She encouraged workers experiencing problems to seek help, noting that protections are available for visa holders who speak up about workplace exploitation.
Investigations are continuing. Information collected during the operation may lead to further audits, reviews and enforcement action against businesses found to have seriously breached their obligations.
The FWO recovered more than $5.6 million for 3,538 workers in the fast food, restaurant and café industry during 2025–26.
Workers and businesses can access free advice through the Fair Work Ombudsman at fairwork.gov.au or by calling 13 13 94. A free interpreter service is available on 13 14 50.
Suspected tax evasion and worker exploitation can also be reported to the ATO at ato.gov.au/tipoff. Workplace concerns can be reported anonymously to the FWO.
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Source : Press Released.
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