CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Australia Legislates To Target 'Black Economy'

Australia Legislates To Target 'Black Economy'

by Mary Swire,, Hong Kong

07 February 2018

The Australian Government has introduced legislation to crack down on the use of electronic sales suppression tools and to extend the Taxable Payments Reporting System.

The Treasury Laws Amendment (Black Economy Taskforce No.1) Bill was introduced on February 7.

Revenue Minister Kelly O'Dwyer said that the new law "will restrict the avenues for people participating in the black economy, whether by engaging in tax evasion or by deliberately underreporting their income."

The legislation will create new offenses to ban the use of electronic sales suppression tools at each stage of the supply chain. It also includes new penalties to discourage the use of such software.

It will become an offense to produce or supply an electronic sales suppression tool, and an offense for entities that are required to keep or make records under the tax law to possess one of these tools. It will also become an offense to the use of a sales suppression tool to incorrectly make or keep records.

According to explanatory documents released alongside the legislation, "electronic sales suppression tools serve no legitimate function as they are specifically designed to understate income and assist in avoiding tax obligations. Such behavior undermines the integrity of the tax system."

The legislation will also extend the current Taxable Payments Reporting System to the courier and cleaning industries – areas deemed to be of high risk. It will require the annual reporting to the Australian Taxation Office (ATO) of payments made by businesses to contractors operating in these industries.

The Taxable Payments Reporting System currently requires businesses in the building and construction industry to report payments they make to contractors to the ATO.

The black economy in Australia is thought to be as large as 1.5 percent of the county's GDP, or around AUD25bn (USD19.7bn).

TAGS: compliance | tax | business | tax compliance | tax avoidance | law | goods and services tax (GST) | Australia | ministry of finance | tax authority | contractors | legislation | construction | penalties | services

To see today's news, click here.


Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »

Stay Updated

Please enter your email address to join the mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.

To manage your mailing list preferences, please click here »