Black economy

Aug 21, 2018

As part of its recent budget announcements, the Federal government has noted that the black economy is a growing social and economic problem, and announced a proposal to introduce new measures to reduce tax evasion including:

  • expanding the ATO’s data-matching capabilities to assist with the detection of people participating in the black economy;
  • prohibiting cash payments for goods and services greater than $10,000 from 1 July 2019;
  • removing deductions for non-compliant payments (including where an amount of PAYG has not been withheld from the payments);
  • expanding the taxable payments reporting system to contractors in industries identified as being more likely to not reporting income, including security providers and road freight transport providers; and
  • creating an Illicit Tobacco Taskforce to investigate, prosecute and dismantle organised crime groups trading in illicit tobacco.

The government also announced that it will be considering the development of a Director Identification Number (DIN) for company directors, as part of its anti-phoenixing measures.

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