Government Targets $50 Billion Black Economy
The ‘Black Economy Taskforce’ report released in October 2017 shows the black economy has grown to 3% of GDP (up from 1.5% in 2012).
The report provides solutions or options to combat the black economy. The Government’s objective is to create a level playing field which enables the lowering of taxes, and ensures all businesses and employees are treated fairly. The reports high priority recommendations are:
- A $10,000 economy-wide cash limit is introduced.
- All wages must be paid into a bank account (to increase transparency).
- Undocumented contractor payments and wages are non- deductible.
- Introduce a reporting system for sharing or gig economy operators (e.g. Uber, Airbnb).
- Expand the taxable payment reporting system to additional high-risk sectors.
- Strengthen the ABN system to reduce fraud.