Australian Taxation Office targets shadow economy via community tip-offs

The Australian Taxation Office (ATO) is intensifying its crackdown on the nation’s shadow economy, which is estimated to be worth more than $80 billion. During the 2025–26 financial year, the agency received over 52,000 community tip-offs, averaging approximately 1,000 reports per week regarding tax evasion, cash-in-hand payments, and unpaid superannuation.

In a recent operation, the ATO conducted surprise visits to more than 25 hospitality businesses, including restaurants, cafes, and fast-food outlets, in Melbourne’s Central Business District. These investigations follow intelligence suggesting discrepancies between busy business operations and reported financial records.

While the hospitality sector accounted for over 2,500 tip-offs nationally, the ATO noted that the construction and beauty industries are also frequent targets of community reports. Assistant Commissioner Tony Goding stated that these tip-offs, often provided by workers, customers, or competitors, serve as vital intelligence to protect law-abiding businesses and ensure fair competition.