In our cultural psyche – 'a fair go' is the opportunity for everyone to succeed, regardless of their background. But operating in the shadow economy strikes at the very heart of this value Australians hold so close.
Shadow economy activities operate outside of the tax and regulatory systems and include underreporting income, cash in hand transactions, deferring business payments to personal accounts, and other illegal activities such as illicit tobacco, sham contracting, and ABN fraud.
Teamwork makes the dream work
Last November, the ATO joined forces with the Fair Work Ombudsman, 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.
This operation 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 firmer and faster action.
Building on the success of Operation Topaz, the ATO will be undertaking several joint agency operations over the coming months. These coordinated actions will continue to demonstrate to the community our commitment, as regulators, to stamping out deliberate shadow economy behaviours.
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, which helps to limit shadow economy behaviour by tracking contractor payments from certain industry service providers and businesses – including building and construction, cleaning, IT, and road freight and courier. 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.
Help and support
To help you with your tax obligations, we publish help and support resources on our website, such as Good business habits and Supporting your small business. You can also take free, self-paced courses on our online learning platform, Essentials to strengthen your small businessExternal Link. You can also reach out to a registered tax agent.
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