The Australian Taxation Office (ATO) has hit a major milestone, receiving over 300,000 tip-offs from the community about tax dodgers since launching its public whistleblower service in 2019.
In the last financial year alone, 9News reported, nearly 50,000 reports were lodged, mostly relating to the so-called “shadow economy”, where businesses demand cash payments or incorrectly claim expenses, the ATO said. These practices are estimated to siphon billions of dollars away from essential services such as health, education, and infrastructure.
ATO Assistant Commissioner Tony Goding warned that businesses evading tax and super obligations are effectively stealing from fellow Australians. “When someone cheats the system, they’re not just breaking the law, they’re freeloading on honest businesses and the rest of the community,” Goding said.
“Paying tax is not optional. Sooner or later, and probably sooner, if you’re operating in the shadow economy, the ATO will discover this… often as a result of a tip-off from your workers, customers or competitors.”
The industries generating the most reports this year were building and construction, cafés and restaurants, and hairdressing and beauty services. Tip-offs often come from customers, employees, other businesses, and even family and friends, highlighting the community’s growing intolerance for dodgy practices.
NSW led the country with 15,907 tip-offs in 2024–25, followed by Victoria with 11,890 and Queensland with 10,630. While Sydney and Melbourne topped the total number of reports, regional areas were also active, including Newcastle in NSW and Robina, Sunshine Coast Hinterland, Townsville, and Toowoomba in Queensland.
The ATO said tip-offs are highly reliable, with 85 per cent of reports last year deemed suitable for further investigation. Red flags include not only “cash only” operations but also lifestyle and operational inconsistencies, such as luxury cars outside businesses claiming financial struggles, busy cafés that never report profits, or employees paid entirely in cash without superannuation.
“People evading tax and super obligations are directly harming honest businesses and increasing the burden on other Australians,” Goding said.
“There really is no excuse. And when you’re caught, you’ll face not just the tax owed, but also significant penalties, interest, and possibly criminal sanctions.”
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