ATO heading to Victoria and NSW in bid to curb black economy

Officers from the Australian Taxation Office (ATO) will be visiting around 500 small businesses in and around the Hornsby area in September, and some 400 small businesses in Healesville during August and September, as part of the office’s efforts to protect honest small businesses from unfair competition by tackling black economy activities.

Assistant commissioner Peter Holt said the visits are all about ensuring a level playing field and curbing unfair competition.

“We’re particularly concerned about businesses gaining an unfair edge over their honest competitors by not playing by the rules,” Mr Holt said.

The ATO is visiting these towns as a result of some tell-tale signs of black economy behaviour. 

“People from the Healesville area have told us about some building and construction businesses getting an unfair advantage over their honest competitors by not playing by the rules," Mr Holt said. 

Similarly, the Hornsby community has reported to ATO that some businesses are not paying their employees their correct entitlements like super and PAYG withholding tax.

“Black economy signs that we look out for are things like not being registered for GST or pay as you go withholding, poor record-keeping, operating a ‘cash only’ business, and failure to provide pay slips,” Mr Holt said.

During the visits, the ATO will also be running some information sessions tailored to support small businesses.

“Our information sessions are designed to help business owners understand the newly introduced single touch payroll system and the benefits of good record-keeping,” Mr Holt said.

The ATO plans to visit almost 10,000 businesses this financial year in all states and territories, across a variety of industries.