2018 Federal Budget Targets the Black Economy
Australia’s black economy is a growing economic and social problem. It undermines the community’s trust in the tax system, creates an uneven playing field for business, fosters the exploitation of workers, and results in lost government revenue and undue welfare expenses.
The Federal Government’s plan to target, and reduce the size of the black economy, involves a variety of measures including:
- The extension of the Taxable Payment Reporting System to the courier and cleaning sectors to ensure payments made to contractors are reported to the ATO.
- The continuation of funding for ATO audit and compliance activities that target the black economy.
- A ban on the manufacture, distribution, possession, use or sale of sales suppression technology.
- New rules to protect tax whistle blowers.
- A limit of $10,000 for cash payments for goods and services from 1 July 2019.
- From 1 July 2019, businesses will no longer be able to claim a tax deduction for non-compliant payments (e.g. where PAYG amounts are not withheld from payments to employees or payments to contractors that do not provide an ABN).