The Australian Taxation Office has reached a milestone of 300,000 community tip-offs about tax evasion and dishonest behaviour since July 1, 2019. In the last financial year alone, nearly 50,000 reports were made about suspicious businesses and individuals.
Most tip-offs relate to shadow economy activity, where people operate outside the tax system, often demanding cash payments or claiming expenses they are not entitled to. The ATO estimates billions in unpaid taxes every year due to such dodgy activity.
“When someone cheats the system, they’re not just breaking the law, they’re freeloading on honest businesses and the rest of the community,” said ATO assistant commissioner Tony Goding. “Paying tax is not optional.”
NSW residents raised close to 16,000 red flags last financial year, followed by Victoria (11,890) and Queensland (10,630). The industries most targeted by ATO investigations are building and construction, cafes and restaurants, and hairdressing and beauty services.
Goding warned that those caught evading taxes face significant penalties, interest, and possible criminal sanctions. “When you’re caught, you don’t just have to cough up the tax,” he said.
