Opening address.
The Australian Taxation Office (ATO) opened the session. New members were welcomed from the Australian Hairdressing Council, Master Builders Australia, and the Australian Border Force (ABF).
ATO Tax Integrity Centre update.
ATO presented annual updates on shadow economy behaviours, covering:
- Trends observed and outcomes delivered under Shadow Economy Sharing Intelligence Program.
- Tip-off referrals continue to provide valuable intelligence, with informants often identifying multiple behaviours across agencies.
- Recent changes to the Whistleblower program and refined criteria resulting in more targeted and actionable intelligence.
- Cash transactions remain the most common risk behaviour.
- Intelligence is shared with partner agencies based on their needs and available resources.
CPA Asia-Pacific Small Business Survey 2024–25 – Australian results
CPA Australia, presented the Australian results of the survey, covering:
- Current small business conditions and expectations.
- Drivers of business growth and challenges.
- Demographic impacts on performance.
- The role of digital technologies in supporting small businesses.
Agency updates
Australian Tax Office
ATO shared insights from the OECD Shadow Economy Conference (Paris, February 2025). Themes included:
- Declining public trust and visibility of enforcement actions contributing to non-compliance.
- International examples of e-invoicing to combat hidden economic activity.
- Emerging risks including identity fraud and vulnerabilities in digital ID verification.
- Ongoing focus on ensuring individuals operating within regulatory systems are not engaging in shadow economy behaviours.
- The ATO has secured 4 years of additional funding from July 2025 to continue its compliance program.
Australian Border Force
Australian Border Force outlined its integration of field compliance operations with visa monitoring, targeting migrant worker exploitation and coercive labour practices. These activities also disrupt associated risks such as money laundering.
Treasury
Treasury advised that additional funding has been allocated to illicit tobacco enforcement over 2 years. A related policy review has been finalised and will inform future compliance priorities.
Member updates
Industry members highlighted the following:
- Ongoing frustrations for small businesses in accessing finance and managing tax debts, with calls for improved ATO guidance and streamlined client–agent linking processes.
- Issues arising from the non-deductibility of General Interest Charge (GIC) and links with ASIC’s reporting requirements.
- Reports of payment disputes and non-Australian Financial Complaints Authority (AFCA) lending in transport, postal and construction sectors.
- Concerns about the timing for the Sharing Economy Reporting Regime data to appear in tax return processes in future, and the quality assurance steps being undertaken before that occurs.
- The building and construction industry remains exposed to shadow economy activity, with insolvencies at near-record highs. Members emphasised the importance of robust enforcement to prevent cost advantages for non-compliant operators.
Other business
The SEAF Co-chair invited members to suggest topics for future presentations. Co-chairs thanked presenters and members for their time and contributions.
Attendees
Attendees list
|
Organisation |
Member or Attendee |
|---|---|
|
ATO |
Tony Goding (Co-chair, proxy) |
|
ATO |
Damien Hocart |
|
ATO |
Filomena Tibaldi |
|
ATO |
Jenny Do |
|
Australian Small Business and Family Enterprise Ombudsman (ASBFEO) |
Donna Doulton |
|
Australian Boarder Force / Dept Home Affairs |
Steve Rutzou (Acting Superintendent, proxy) |
|
Building & Construction industry representative |
Shane Garrett |
|
Chartered Accountants Australia and New Zealand |
Susan Franks |
|
Council of Small Business of Australia (COSBOA) |
Adele Sutton |
|
Community Economics - independent |
Peter Strong |
|
Department of Treasury |
Richard Maher and Bridget Hannaford |
|
Independent |
Dr Michael Schaper (Co-chair) |
|
Recruitment, Consulting & Staffing Association of Australia and New Zealand (RCSA) |
Charles Cameron |
Guest attendees
Guest attendees list
|
Organisation |
Attendee |
|---|---|
|
ATO |
Glen Williams (presenter) |
|
ATO |
Steve Verlingieri (presenter) |
|
ATO |
Alysia Fleming (observer) |
|
CPA Australia |
Gavan Ord (presenter) |
Apologies list
|
Organisation |
Member |
|---|---|
|
ATO – Co-chair |
Will Day |
|
ATO |
Shane Strong |
|
ATO – Secretariat |
Jane Li |
|
Australian Retailers Association |
Ben Cornel |
|
CPA Australia, Tax Lead Policy & Advocacy |
Jenny Wong |
|
Australian Boarder Force / Dept Home Affairs |
Commander John Taylor |
|
Australian Small Business and Family Enterprise Ombudsman (ASBFEO) |
Bruce Billson |
|
Restaurant and Catering Association of Australia |
Suresh Manickam |