Australians have flooded the Australian Taxation Office (ATO) with over 250,000 tip-offs about tax evasion and other dishonest practices since 2019.
In the 2023-24 financial year alone, over 47,000 tip-offs were lodged, reflecting a growing public frustration with tax dodgers.
ATO Assistant Commissioner Tony Goding noted that these tip-offs are coming from all corners of the community, including business owners, customers, employees, and even friends and family. The ATO is receiving reports on activities ranging from unreported income and cash payments to workers, to businesses under-reporting sales or using tactics to avoid paying tax and superannuation.
“It’s not just about the old ‘cash only’ or ‘EFTPOS out of order’ signs,” Goding said. “These businesses are deliberately undercutting their competitors and robbing the community of much-needed tax revenue. The Australian community understands that cheating tax isn’t just unfair—it’s stealing from everyone.”
The ATO estimates that around $16 billion is lost annually to cash-in-hand jobs and other shadow economy activities. Industries like building and construction, cafes, restaurants, and beauty services were the top offenders flagged in the most recent year of reporting.
New South Wales led the country with 15,516 tip-offs, followed by Victoria (11,256) and Queensland (10,629). Surprisingly, some of the highest numbers of reports didn’t just come from major cities like Sydney or Melbourne, but also from regional Queensland. Top postcodes for tip-offs in 2023-24 included Southport, Bundaberg, Toowoomba, Mackay, and Caboolture.
“These numbers tell us that Aussies have had enough,” Goding continued. “Dodging tax no longer passes the ‘pub test’. People are fed up with businesses and individuals who cheat not only their competitors but the community at large.”
The ATO receives nearly 1,000 tip-offs a week, and 90% of the reports are deemed worthy of further investigation. These investigations are carried out by specialised ATO teams, including the Shadow Economy Taskforce, which works across multiple agencies to tackle tax evasion. Recent investigations have cracked down on businesses using electronic sales suppression tools (ESSTs), resulting in the discovery of $23 million in unpaid taxes—an outcome made possible thanks to community tip-offs.
“Tip-offs provide us with vital information that can seal the fate of those trying to cheat the system,” Goding said. “The community is playing a crucial role in helping us crack down on dishonest businesses.”
Making a tip-off only takes a few minutes and you can remain anonymous. To find out how to report suspected tax evasion or shadow economy activity visit www.ato.gov.au/tipoff.
Businesses who have been operating in the shadow economy are encouraged to speak to their registered tax professional or the ATO to work to get it right.
