Invest
Still using cash? The ATO is watching
As part of a crackdown on the black economy, the Tax Office is set to visit hundreds of businesses to make sure income is being properly declared.
Still using cash? The ATO is watching
As part of a crackdown on the black economy, the Tax Office is set to visit hundreds of businesses to make sure income is being properly declared.
What is the black economy?
According to the office of the Australian Treasury, the black economy refers to people who operate entirely outside of the tax and regulatory system or who are known to the authorities but do not correctly report tax obligations.
What does it cost the national economy?
Assistant commissioner Peter Holt believes that not paying taxes is not a victimless crime, with communities as a whole being worse off.
“The Black Economy Taskforce estimates that the black economy is costing the community as much as $50 billion, which is approximately 3 percent of gross domestic product (GDP). This is money that the community is missing out on for vital public services like schools, welfare, roads, healthcare and infrastructure,” said Mr Holt.
Who is being targeted?
The crackdown will continue in the 2019-20 financial year, with the ATO expecting to visit around 10,000 small businesses across the country.
As part of these visits, the ATO will also visit tax practitioners of small businesses to help with early intervention strategies.
Mr Holt said the crackdowns were in relation to pay as you go services withholding taxes or GST.
“We’re particularly concerned about businesses in these locations who are not registered for pay as you go withholding or GST. Local visits provide us an opportunity to talk to business owners and help them get things right.”
“Businesses who pay cash in hand or fail to lodge income tax returns or business activity statements get an unfair advantage and make it harder for other businesses who are doing the right thing,” said Mr Holt.
Is cash still king?
Late last year, big four bank NAB found that Australians still have a reliance on cash, despite the fast-growing popularity of digital transactions.
The average Australian still carries about $76 in cash over a period of a week, NAB found.
Use of cash is generational and, unsurprisingly, is a preference for many older Australians, but young consumers are holding strong to cash also.
For example, about three in five respondents to NAB’s survey said they would choose a cash payment if they were to receive a $1,000 payment.
“Despite young people using cash differently and less often than older Australians, one in two people aged between 18 and 29 still wanted the cash,” NAB’s report said.
This email address is being protected from spambots. You need JavaScript enabled to view it.
About the author
About the author
Spending
Qantas announces $2.3bn loss but plans to be flying again by Christmas
Australia’s national carrier has revealed the devastating impacts border closures have had on the company, while noting a possible return date to international operations in its full-year market upd...Read more
Spending
Will your frequent flyer status be impacted by COVID?
In the latest bid to kick-start the travel industry post-lockdowns, Australia’s largest airline has announced that it is rewarding its frequent flyers by extending their status. ...Read more
Spending
‘Technology, not taxes’: Why not both?
The government has joined the rest of the world in looking to offset carbon emissions, albeit through technology, not taxes, despite the possibility that positive taxes and incentives could potentiall...Read more
Spending
Social media spending balloons to $118bn
Australians are spending a whopping $118 billion on discretionary items through social media and apps, fresh figures have revealed. ...Read more
Spending
Why payphones are set to become free
Australians will now be able to make free calls from any Telstra payphone under a new initiative aimed at helping those who are in need, Telstra’s CEO has revealed. ...Read more
Spending
7 surprisingly simple ways to save money and help the environment
The rising costs of living is providing consumers with a rare win-win scenario by saving money and helping the environment. ...Read more
Spending
How much are you wasting on unused subscriptions?
Australians are continuing to pay for subscriptions they are not using, costing households up to $2,000 a year, new banking figures have revealed. ...Read more
Spending
Viagogo under the microscope for ‘ripping off’ consumers
Viagogo is under investigation by Fair Trading after ticket scalpers have been accused of raking in excessive profits through the ticketing site. ...Read more
Could property prices inflate by another 20%? What’s happening in recent dividend announcements? Did your fund fail the YFYS test?
Listen now
What does the NSW regional permit mean for property investors? Who really wins from the BHP-Woodside merger?
Listen now
The sea and tree-change norm; Square’s acquisition of Afterpay; Why you should think twice before turning to TikTok for advice
Listen now
The Olympic effect on property and equity investors; COVID-19 Disaster Payments and super
Listen now
Spending
Qantas announces $2.3bn loss but plans to be flying again by Christmas
Australia’s national carrier has revealed the devastating impacts border closures have had on the company, while noting a possible return date to international operations in its full-year market upd...Read more
Spending
Will your frequent flyer status be impacted by COVID?
In the latest bid to kick-start the travel industry post-lockdowns, Australia’s largest airline has announced that it is rewarding its frequent flyers by extending their status. ...Read more
Spending
‘Technology, not taxes’: Why not both?
The government has joined the rest of the world in looking to offset carbon emissions, albeit through technology, not taxes, despite the possibility that positive taxes and incentives could potentiall...Read more
Spending
Social media spending balloons to $118bn
Australians are spending a whopping $118 billion on discretionary items through social media and apps, fresh figures have revealed. ...Read more
Spending
Why payphones are set to become free
Australians will now be able to make free calls from any Telstra payphone under a new initiative aimed at helping those who are in need, Telstra’s CEO has revealed. ...Read more
Spending
7 surprisingly simple ways to save money and help the environment
The rising costs of living is providing consumers with a rare win-win scenario by saving money and helping the environment. ...Read more
Spending
How much are you wasting on unused subscriptions?
Australians are continuing to pay for subscriptions they are not using, costing households up to $2,000 a year, new banking figures have revealed. ...Read more
Spending
Viagogo under the microscope for ‘ripping off’ consumers
Viagogo is under investigation by Fair Trading after ticket scalpers have been accused of raking in excessive profits through the ticketing site. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
