ATO responds to shadow (cash) economy tip-offs

ATO responds to shadow (cash) economy tip-offs

Hello Chasers

As the economy slowly recovers from the impact of COVID, the Government will be looking to reduce its burdening debt that grew considerably on the back of handouts such as JobKeeper and Business Support Funds. A real focus will be on those areas where ‘cash only ’ is promoted and not declared.

The ATO recently issued a media release in which they revealed that demanding cash from customers, paying workers ‘cash in hand’, or not declaring all sales are the most common examples of the 43,000 tip-offs it received in the 2022 financial year.

Furthermore, the ATO confirmed that it is actively using intelligence from tip-offs as part of its approach to dealing with the shadow economy. The shadow economy (previously referred to as the black economy) refers to activities that take place outside of the tax and other regulatory systems.

The ATO estimates that the community misses out on around $11 billion in taxes each year as a result of the shadow economy.

Topping the list of industries, the ATO was tipped off about in the past year were building and construction, hairdressing and beauty services, cafés and restaurants, road freight transport, and management advice and related consulting services.

Click here to read more …

Read more of our daily blogs in our Chasing the Dream Facebook Community

Share This

Related Posts

featured
4 Min Read

Preparing Your Small Business for Payday Super (Starting 1 July 2026)

Hi Chasers, From 1 July 2026, Australian employers will experience a significant change in how superannuation contributions are paid. The new system, known as Payday Super, will require businesses to pay employee super contributions at the…
Read Full Article
Featured
4 Min Read

Strategic FBT Management: Beyond the March 31 Odometer Reading

Hi Chasers, Fringe Benefits Tax (FBT) remains an important obligation for Australian employers. However, the 2026 FBT year introduces a key update for businesses providing employee vehicles. Speedometer readings are no longer required when calculating motor…
Read Full Article