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  • Whole-of-government black economy action plan

    In December 2016, the government established the Black Economy Taskforce to develop an innovative, multi-pronged policy response to combat the black economy in Australia.

    At the time, the taskforce estimated the economic impact of the black economy could be as large as 3% of GDP, or approximately $50 billion. In 2017–18, the tax gap for the Australian tax and superannuation systems was estimated to be around $31 billion, or 6.9%.

    In response to the recommendations of the Black Economy Taskforce’s final report, the government announced a whole-of-government package for tackling the black economy. The ATO has an important role in implementing many of these recommendations.

    By the end of June 2020 (two years into the program), we had raised an additional $1.8 billion from new and enhanced enforcement strategies, and implemented several new measures. These include:

    • removing tax deductibility of non-compliant payments
    • expanding the Taxable Payments Reporting System into new industries
    • increasing the integrity of the Commonwealth procurement process
    • collecting tobacco duties and taxes at the Australian border
    • establishing the cross-agency Black Economy Standing Taskforce
    • establishing the new Tax Integrity Centre (and ATO Tip-off hotline) – a single point of contact to report suspected or known illegal activity or behaviour of concern.

    See also:

    Last modified: 07 May 2021QC 58365