The Australian Taxation Office (ATO) received more than 52,000 tip-offs about suspected tax evasion and other non-compliance in FY25-26, equivalent to 1000 reports a week.
Around 83 per cent of tip-offs were deemed suitable for further review, with more than 360,000 received since July 2019. The ATO cross-checks reports against its data and shares information with partner agencies through the Shadow Economy Taskforce. Tip-offs from employees, customers, suppliers and competitors commonly allege undeclared income, cash-in-hand payments and unpaid superannuation.
ATO Assistant Commissioner Tony Goding said community tip-offs provide intelligence for further investigation. “Aussies know when something doesn’t seem right, and they’re increasingly calling it out when they see someone trying to gain an unfair advantage by operating in the shadows,” he said.
Building and construction, cafes and restaurants, and hairdressing and beauty services were the most reported industries. Hospitality accounted for more than 2500 tip-offs, mainly involving undeclared income, cash-in-hand payments and unpaid superannuation.
Community tip-offs informed Operation Tonberry, with the ATO conducting more than 25 unannounced visits to fast-food outlets, restaurants and cafes in Melbourne’s CBD on September 22 and 23. The ATO is investigating suspected cash-in-hand payments, unpaid superannuation, undeclared income and reporting and record-keeping breaches.
“Melbourne diners know a busy cafe when they see one, so do we. When a venue is packed, staff are flat out and the coffee machine never stops, but the books tell a different story, that’s something we’re going to take a closer look at,” Goding said.
He said non-compliance can give businesses an advantage over those meeting their tax and superannuation obligations.
“What really leaves a bad taste is when businesses doing the right thing see their competitors cutting corners, ripping off workers and skimming off the top to gain an unfair advantage,” he said.
Operation Tonberry aims to ensure businesses that follow the rules can compete on a level playing field.
“You can only attempt to hide in the shadows for so long. Tax crime leaves tell-tale signs, and the community is getting better at spotting them, and less tolerant of people getting away with these activities,” Goding said.
The ATO said investigations are continuing. Members of the public can report suspected deliberate non-compliance with tax or superannuation obligations anonymously.
