A series of regulatory changes is testing how prepared farm operators are for closer oversight
Australia’s agriculture sector is confronting a rapidly changing regulatory environment as new employment laws and tougher enforcement reshape workplace compliance requirements heading into 2026.
Criminal penalties target wage theft
New wage theft laws took effect on 1 January 2025, making intentional underpayment of wages a criminal offence under the Fair Work Act 2009. Companies face fines of up to $8.25 million or three times the underpayment amount, while individuals risk up to 10 years’ imprisonment or fines of up to $1.65 million.
The laws cover minimum rates, overtime, penalty rates, allowances, and leave entitlements. King & Wood Mallesons partner Ruth Rosedale, senior consultant Brett Feltham, and senior associate Darcy Harwood, noted in a December 2025 analysis that the Fair Work Ombudsman indicated the laws could apply where non-compliance is detected but not remediated with appropriate urgency.
Horticulture sector under microscope
The Fair Work Ombudsman released its Horticulture Compliance Report in June 2025, summarising findings from a three-year campaign across 15 regional locations. The regulator conducted 360 site visits and commenced more than 500 investigations.
Labour hire providers were responsible for 68% of non-compliance cases. The report identified poor record-keeping, incorrect payslips, and unmet piecework requirements as major concerns. The Fair Work Ombudsman found growers generally understood their obligations but lacked appropriate governance arrangements, particularly when engaging labour hire providers.
Following the report, the ombudsman announced targeted inspections of labour hire providers in horticulture, including joint activities with the Australian Taxation Office and state labour hire licensing regulators.
Labour hire arrangements face new rules
The agriculture sector has seen increased applications for regulated labour hire arrangement orders, introduced under the Closing Loopholes legislation. These orders require third-party labour providers to pay workers rates matching enterprise agreements that would apply if workers were directly employed by host employers.
The Australasian Meat Industry Employees Union has successfully obtained more than a dozen orders covering meat processing workers. The union’s success may encourage broader coverage unions to pursue similar orders for agriculture workers, given the sector’s heavy reliance on labour hire arrangements.
Safety risks expand beyond physical hazards
SafeWork Australia recognises agriculture as one of the most dangerous industries, combining hazards including plant and equipment, chemicals and outdoor work. However, attention has expanded to psychosocial risks such as low job control, remote work, long hours, and job insecurity.
The Work Health and Safety Code of Practice provides guidance for duty holders. WorkSafe Western Australia published First steps to farm safety: Guide following its 2023 Agricultural Industry Inquiry.
Rosedale, Feltham, and Harwood recommended agribusinesses establish compliance programs focused on governance, systems, and culture to navigate the heightened regulatory environment.
