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New enforcement measures to entangle Black Economy participants

Publication date: 09 May 18 | Source: THE TAX INSTITUTE

SYDNEY, 9 May 2018: Last night’s Federal Budget saw more measures being announced to target the Black Economy. 

“The Federal government will introduce three new key measures targeting Black Economy activities” said The Tax Institute’s Senior Tax Counsel Professor Bob Deutsch. 

These include: 

  • limiting cash payments within Australia to $10,000;
  • disallowing deductions to businesses for payments to employees where PAYG could have been withheld and payments to contractors where an ABN is not provided and the business does not withhold any tax; and
  • expanding the Taxable Payments Reporting system to cover contractor payments in the security providers and investigation services industry, road freight transport and computer system design and related services industry. 

These measures will be reinforced by the $318 million being given to the ATO over four years to implement new strategies targeting the Black Economy and phoenixing activities. 

“It is expected that the Government’s revenue bottom line will be better off by $3 billion over the forward estimates period and there will be an extra $2.5 billion in underlying cash receipts. These numbers suggest some robust enforcement from the ATO is coming to the Black Economy. Taxpayers need to ensure they are fully compliant with the law or they may find themselves entangled in these enforcement strategies,” said Professor Deutsch. 



For more information, please contact: Stephanie Conway, Media Relations: 02 8223 0011. 

The Tax Institute is the leading forum for the tax community in Australia. Our reach includes membership of 12,000 tax professionals from commerce and industry, academia, government and public practice and 40,000 Australian business leaders, government employees and students. We are committed to representing our members, shaping the future of the tax profession and continuous improvement of the tax system for the benefit of all, through the advancement of knowledge, member support and advocacy.