ATO heads to Bathurst in black economy crackdown

ATO officers will be visiting businesses in Bathurst following a number of tip-offs from the community about businesses engaging in black economy activities, such as paying their employees ‘cash in hand’ or not reporting all of their sales.

“Our intelligence also suggests that some businesses are not declaring all of their income to the ATO, and avoiding their employer obligations by not paying staff entitlements like super and tax contributions,” said assistant commissioner Peter Holt.

Before the visits, the ATO will also be running some information sessions tailored to support small businesses. There will be a ‘Tax Essentials’ information session to help Bathurst small businesses get a tune up on some tax basics.

The ATO warned that businesses who are not declaring income, not complying with their tax and super obligations or paying their workers cash in hand are contributing to the black economy.

“These dishonest businesses in Bathurst are unfairly overtaking their honest competitors when it comes to their tax so we’re going to take a look under a few bonnets to ensure everything is in order. By detecting and addressing this behaviour, we’re helping to ensure honest small businesses can get a fair run around the track,” Mr Holt said.

“The black economy impacts everyone in the community. By working directly with small businesses, we will be able to work through any issues and help them get back on track and ensure a level playing field for all businesses.”

The ATO plans to visit around 10,000 businesses this financial year in all states and territories, across a variety of industries. The Tax Office will also be visiting tax practitioners of small businesses in these areas as part of an early intervention strategy.