Since July 2019, Australians have submitted 250,000 tip-offs to the Australian Taxation Office (ATO) about tax avoidance and dishonest business practices.
In the 2023-24 financial year alone, more than 47,000 tips were filed.
ATO assistant commissioner Tony Goding (pictured above) said the community is fed up with tax evasion and dishonest practices.
“The number of reports we have received tells us that Aussies have had enough. Dodging your tax obligations clearly no longer passes the ‘pub test’,” Goding said.
The most targeted industries were building and construction, cafes, restaurants, hairdressing, and beauty services.
Many reports involve businesses demanding cash payments, underreporting income, or paying workers cash to avoid taxes.
“These businesses are deliberately undercutting their competitors and gaining an unfair advantage in their industry,” Goding said.
New South Wales led the way with 15,516 tip-offs, followed by Victoria and Queensland.
While Sydney and Melbourne had the most reports, regional Queensland topped the list for tip-offs. The ATO received numerous tips from postcodes such as Southport, Bundaberg, Toowoomba, and Mackay.
“Community tip-offs are one of our best sources of information when it comes to tackling the shadow economy,” Goding said.
Once a tip-off is received, ATO cross-checks the information and decides whether further investigation is necessary. In 2023-24, 90% of tip-offs were deemed suitable for investigation.
ATO has recovered millions in unpaid taxes, including a recent case where $23 million in unpaid tax was uncovered through the use of electronic sales suppression tools.
Two recent examples showcase how tip-offs lead to action. Sabrina, a fish and chip shop owner, used an electronic sales suppression tool to hide nearly $4 million in income, leading to the seizure of her assets.
Similarly, Penny, a salon owner, underreported her earnings by only accepting cash payments, resulting in more than $1 million in penalties after being caught, ATO reported.
Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
