ATO heads north as part of its work to tackle the black economy

The Australian Taxation Office (ATO) has announced it is planning to visit around 400 small businesses in Cooktown and Port Douglas in far north Queensland during August and September as part of the agency’s work to tackle the black economy and protect honest businesses from unfair competition.

The Tax Office will also be knocking on the doors of 350 businesses in Darwin in August, following a number of tip-offs from the community about businesses engaging in black economy activities. 

Assistant commissioner Peter Holt said the visits are all about ensuring a level playing field for honest businesses and curbing unfair competition as a result of black economy activities.

“Our intelligence suggests that some businesses are not declaring all of their income to the ATO and avoiding their obligations by not paying their entitlements like super and tax contributions. We have also received reports of some businesses operating without proper GST, PAYG withholding or ABN registrations,” said Mr Holt.

He warned that businesses that are purposely not paying their fair share of tax and contributions make it harder for other businesses that are doing the right thing.

“The Black Economy Taskforce estimates that the black economy is costing the community as much as $50 billion, which is approximately 3 per cent of gross domestic product (GDP),” Mr Holt said.

“This is money that the community is missing out on for vital public services like healthcare, roads, schools, welfare and infrastructure.” 

During these visits, the ATO will also be running some information sessions tailored to support small businesses. A single touch payroll information session will also be held on the same day.

The visits are part of the ATO’s strategy to deal with the black economy. The ATO plans to visit almost 10,000 businesses this financial year in all states and territories, across a variety of industries.