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Shady business shaving $50bn from Aus GDP

By Grace Ormsby · August 19 2019
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Shady business shaving $50bn from Aus GDP

By Grace Ormsby
August 19 2019
Reading:
egg
Peter Holt

Shady business shaving $50bn from Aus GDP

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By Grace Ormsby · August 19 2019
Reading:
egg
Peter Holt

The black economy is costing Australian society as much as $50 billion dollars, according to the ATO.

The figure comes from the Black Economy Taskforce, which has outlined that the estimated cost of the black economy is costing the community around 3 percent of the nation’s gross domestic product (GDP).

With the definition of the black economy encompassing activities such as paying for work cash-in-hand, not reporting or under-reporting income, phoenixing, sham contracting, as well as wage underpayment, illegal drugs and tobacco, the ATO has reminded the public that “this is money that the community is missing out on for vital public services like schools, welfare, roads, healthcare and infrastructure”.

According to assistant commissioner Peter Holt, Australia’s tax system “funds the services that benefit all of us”.

“The Australian way of life depends on everyone paying the right amount of tax,” he continued.

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He went on to note that the ATO is seeing “an upwards trend in the number of referrals to our tip-off line from people who know or suspect phoenix, tax evasion or black economy behaviour, which suggests that the community, as well as honest businesses, have had enough of those who are cheating the system and getting an unfair advantage”.

Shady business shaving $50bn from Aus GDP
Peter Holt
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About the author

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

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About the author

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

Join The Nest Egg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

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