Tax tip-offs bring millions
Australians are fed up with tax dodgers, and the ATO is cashing in.
The Australian Taxation Office (ATO) has reported receiving 250,000 tip-offs from the public since July 2019, signalling growing frustration with tax evasion and dishonest business practices.
These reports, coming from a wide range of sources including businesses, customers, employees, and even family members, reflect a national stance against tax cheating.
In the 2023–24 financial year alone, more than 47,000 tip-offs were submitted.
ATO Assistant Commissioner Tony Goding says Australians are stepping up to hold dishonest businesses accountable.
He noted that tax evasion activities, such as failing to declare income, paying workers in cash to avoid tax and superannuation, and underreporting sales, are undermining honest competitors and affecting public services.
“It’s not just about ‘cash only’ or ‘EFTPOS out of order’ signs,” Goding says.
The ATO estimates that such dishonest activities contribute to an annual $16 billion shortfall in tax revenue.
Key industries targeted in tip-offs during 2023–24 include construction, hospitality, and beauty services.
New South Wales led in submissions with over 15,000 tip-offs, followed by Victoria and Queensland.
Tip-offs are not confined to urban areas. Regional Queensland was a hotspot for reports, with areas like Southport and Bundaberg among the top postcodes for submissions.
“Community tip-offs are one of our best sources of information when it comes to tackling the shadow economy,” Goding said.
About 90 per cent of the tip-offs received in the past financial year were deemed worthy of further investigation.
These investigations are conducted by specialised ATO taskforces, such as the Shadow Economy Taskforce.
The impact of these community reports has been significant, leading to the discovery of businesses using electronic sales suppression tools to evade $23 million in taxes earlier this year.
The ATO is encouraging businesses operating in the shadow economy to come forward and correct their practices.
For those looking to report tax evasion, the ATO provides an anonymous reporting platform.