Australian Tax Office Received 250,000 Tip-Offs Since 2019

Australian banknotes in Melbourne, on Nov. 7, 2017. Paul Crocker/AFP via Getty Images

The Australian Taxation Office (ATO) says it received 250,000 tip-offs from the community about tax avoidance and other dishonest behaviours since July 1, 2019, with more than 47,000 in the 2023/24 financial year alone.

The ATO estimates there is a shortfall of around $16 billion in the tax take each year because of businesses doing things like cash jobs. It receives almost 1,000 messages every week from people who know or suspect tax evasion.

Building and construction, cafes and restaurants, and hairdressing and beauty services topped the list of industries the ATO was tipped off about in the last financial year.

The largest number of tips came from New South Wales (15,516), followed by Victoria (11,256) and Queensland (10,629).

But while people from Sydney and Melbourne filed the most reports, they are not only coming from capital cities. The top five regional post codes from which the ATO received tip-offs this year were all from Queensland: Southport, Bundaberg, Toowoomba, Mackay, and Caboolture.

90 Percent of Tip-Offs Followed Up

Building and construction, cafes and restaurants, and hairdressing and beauty services topped the list of industries the ATO was tipped off about in 2023–24.

“These businesses are deliberately undercutting their competitors and gaining an unfair advantage in their industry,” said ATO Assistant Commissioner Tony Goding. “People who cheat their competitors and the community will likely try to cheat their customers too.”

He said Australians are “fed up with dodgy behaviours in the community” and are tipping off the ATO about taxpayers not declaring income, demanding cash from customers, paying workers in cash to avoid paying tax and super, not reporting sales, and where someone’s lifestyle doesn’t appear to match their income.

“Community tip-offs are one of our best sources of information when it comes to tackling the shadow economy,” Goding said. “When we receive information through a tip-off, we cross-check the information and assess whether further action is required.”

Around 90 percent of the tips analysed by the ATO in 2023/24 were found to be suitable for further investigation.

This investigation is carried out by specialised teams and taskforces within the ATO, including the cross-agency Shadow Economy Taskforce.

“The community is helping us crack down on businesses using dodgy electronic sales suppression tools (ESSTs), for example,” Goding said. “Earlier this year, we uncovered businesses using ESSTs to avoid paying tax to the tune of $23 million.

“A tip-off can provide the ATO with crucial information it needs as part of an investigation, sealing the fate of those who intentionally do the wrong thing.”