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...

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