Joint agency operations
We undertake regular joint-agency operations to tackle shadow economy behaviour. These coordinated actions demonstrate our commitment, as regulators, to stamping out deliberate shadow economy activities.
In November 2024, the ATO joined forces with the Fair Work Ombudsman (FWO) and the Department of Home Affairs for Operation Topaz. Our officers visited farms and labour hire providers in and around Gatton, Southeast Queensland, to ensure they were complying with the relevant tax, super, workplace, and immigration laws.
In August 2025 we again worked with the FWO to conduct a series of surprise visits to food sector and hospitality businesses in Darwin as part of Operation Sentinel.
These operations investigated suspected worker exploitation and showed the public that we have zero tolerance for those that are deliberately doing the wrong thing. Employers that do not meet their obligations face firm and fast action.
Third-party reporting – a perfect match
Initiatives such as the Taxable Payment Reporting System (TPRS) and the Sharing Economy Reporting Regime (SERR) provide valuable data and insights that help us engage with small businesses, encourage compliance, and ensure a level playing field.
TPRS is a key tool in this effort. It helps limit shadow economy behaviour by tracking contractor payments from certain service providers and businesses in certain industries, including building and construction, cleaning, Information technology (IT), and road freight and courier services. The data collected from TPRS helps protect tax revenue and ensures a fair go for businesses who do the right thing with reporting their income.
Shadow Economy Compliance Program
The Shadow Economy Compliance Program was established in response to the taskforce reportExternal Link. Since it was established, this measure has been extended through to 2028–29, with the most recent funding boost announced in the March 2025 Budget.
As at 30 June 2025, the Shadow Economy Compliance Program has identified and treated $10.5 billion in unpaid taxes.
Program focus
The program seeks to address the shadow economy across a range of activities and risk areas by:
- identifying and responding to new and emerging risks through improved risk detection analytical models
- building small businesses knowledge of, and participation in, the tax and superannuation systems through community education and support
- making sure lodgment obligations are met by assisting with correct reporting and payments and treatment of employer obligations
- addressing opportunistic and deliberate behaviour such as not reporting or underreporting income and wealth
- addressing digital evasion, which involves the use of software and other mechanisms to hide income or not meet other obligations
- addressing the domestic production of illicit tobacco to prevent the supply of illicit tobacco into the retail market
- addressing illicit alcohol by removing the worst offenders from the supply chain
- making sure tax professionals and other intermediaries don't participate in the shadow economy or negatively influence their client’s behaviour
- enabling cross-agency information sharing and activities through the Shadow Economy Taskforce.
Program measures
A number of measures were implemented by the program since commencement, including:
- removing tax deductibility of non-compliant payments
- expanding the Taxable payments annual report requirements into new industries
- increasing the integrity of the Commonwealth procurement process
- collecting tobacco duties and taxes at the Australian border
- establishing the Tax Integrity Centre – a single point of contact to report community members who gain an unfair advantage by intentionally doing the wrong thing. This makes it easier to make a tip-off.
Help and support
To help you with your tax obligations, you can:
- see our resources, such as Good business habits and Supporting your small business
- take free, self-paced courses on our online learning platform, Essentials to strengthen your small businessExternal Link
- reach out to a registered tax practitionerExternal Link.
You can also get updates on recent government announcements tax and superannuation law and policy.