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What attracts our attention in small business

Poor compliance behaviours that are attracting our attention.

Last updated 9 February 2026

What attracts our attention and what we're doing about it

We'll be clear about the behaviours that concern us, why they matter, and what we do in response. This helps you get it right the first time and supports transparency in how we work.

Poor compliance behaviours that attract our attention

We look more closely at small businesses that:

  • knowingly operate outside of the system, like not declaring all income and over-claiming expenses
  • deliberately don't report or register correctly, and don't lodge and pay in full and on time
  • don't know their tax and super obligations, including employer responsibilities
  • pay employees in cash and don't declare income to avoid their tax and super obligations
  • use business funds and assets to support their personal lifestyle, tax-free
  • have poor record keeping and/or cash flow management.

Why we share this information

We provide this information to:

  • be transparent about what draws our attention
  • explain the consequences of operating outside of the system
  • support conversations between small businesses and their tax professionals
  • encourage good business habits from the start.

How we define a small business

A small business is sole trader, company, trust or partnership that both:

  • operates a business for all or part of the financial year
  • has an aggregated annual turnover of less than $10 million.

Your concerns

If you're concerned about your tax or super position, you can:

If you know or suspect illegal phoenix activity, tax evasion or shadow economy behaviour you can either:

  • complete the tip-off form, which is also available in the contact us section of the ATO app
  • phone the Shadow Economy hotline on 1800 060 062.

The information you provide is treated confidentially, and tip-offs can be made anonymously. There are laws that will protect your privacy.

Help and support

If any of these risk areas apply to your business, help is available:

QC103451