As part of its efforts to tackle the black economy and protect honest businesses from unfair competition, the Australian Taxation Office (ATO) is planning to visit around 400 small businesses in Healesville, Victoria during August and September.
Assistant Commissioner Peter Holt said the visits are all about ensuring a level playing field for honest businesses and curbing unfair competition as a result of black economy activities.
“We’re particularly concerned about businesses in certain industries in Healesville like building and construction gaining an unfair competitive edge over their honest competitors, so businesses in these industries are more likely than others to get a visit from us,” Mr Holt said.
“We take non-compliance of employer obligations seriously and are committed to do the right thing for honest businesses in the area by identifying those who are engaging in black economy practices and ensure a level playing field”, Mr Holt said.
The cash and hidden economy is a part of the black economy. It exists when individuals or businesses deliberately hide income to avoid paying the right amount of tax or super.
“The Black Economy Taskforce estimates that the black economy is costing the community as much as $50 billion, which is approximately three percent of Gross Domestic Product (GDP),” Mr Holt said.
“This is money that the community is missing out on for vital public services like roads, schools, welfare, healthcare, and infrastructure.”
“Some business may use the cash payments to hide income and not meet other obligations, for example paying cash wages without keeping records, not declaring cash sales, not recording some sales and other activities to avoid their tax and super obligations”, Mr Holt said.
During the visits, the ATO will also be running some information sessions tailored to support small businesses. A Single Touch Payroll information session will also be held on the same day.
“We hope these visits and information sessions will be of great help to small businesses in the Healesville area”, Mr Holt said.
“Local visits provide us with an opportunity to talk to business owners and help them get things right. During the visits, we may discuss record keeping and payment facilities, outstanding lodgments, tax debts, and managing employee entitlements such as superannuation.”
“These local visits give us an opportunity to talk to business owners and help them get things right. During the visits, we may discuss record-keeping and payment facilities, outstanding lodgments, tax debts, and managing employee entitlements such as superannuation,” Mr Holt said.
ATO staff will also be visiting tax practitioners of small businesses in these areas as part of our early intervention strategy. These visits will enable us to better understand the drivers behind agent behaviour and provide education and support to encourage willing participation of their clients in our tax and super systems.
