Tax integrity centre
The Australian Taxation Office (ATO) presented annual updates on shadow economy behaviours, covering:
- Trends observed and outcomes delivered under the 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.
Asia-Pacific small business survey results
CPA Australia presented the 2024–25 Asia-Pacific small business Australian results of the survey, covering:
- current small business conditions and expectations.
- drivers of business growth and challenges.
- demographic impacts on performance.
- role of digital technologies in supporting small businesses.
Agency updates
Australian Tax Office
The ATO shared insights from the Organisation for Economic Co-operation and Development 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
The 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 and links with Australian Security Investments Commission’s reporting requirements.
- Reports of payment disputes and non-Australian Financial Complaints Authority 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.