Opening remarks
A summary on findings and insights of the July workshop on ‘Digital Shadow Economy Behaviours’ was presented.
Co-chairs reminded members of their requirement to complete the mandatory Integrity Declaration by 30 September 2024.
Reporting and data controls
The Australian Taxation Office (ATO) design team led a workshop on reporting and data controls discussing:
- how businesses interact with the ATO
- understanding the current state of data controls
- the type of data being collated and shared by the ATO
- exploring possible future strategies.
The findings will be tabled at the last 2024 quarterly Shadow Economy Advisory Forum (SEAF) meeting for review and discussion with members.
Member updates
Industry members shared their key observations and provided updates on various industries, including retail and construction, highlighting the challenges faced by small businesses including:
- Cash economy concerns, noting certain businesses continue to operate primarily with cash, often leading to under-reporting.
- The impact of technology on cash transactions and the complexities faced in managing cash flow and reporting.
- Pressures of managing softer sales, higher vacancies, increase payment disputes, and the need for better support for small businesses.
- Businesses dealing with stress, leading to insolvencies and mental health issues.
- Impact of heavy regulatory changes on accountants and small practitioners which are driving small businesses away from using trusted advisors, and the importance of supporting small businesses.
Agency updates
Treasury
Treasury proposes to provide an update of the review at the next SEAF quarterly meeting in November.
ATO
The Shadow Economy Program has undertaken more than 245,000 activities and raised more than $2.05 billion in liabilities.
The Illicit Tobacco Taskforce has undertaken 81 seizures supporting taskforce activities and state law enforcement agencies. These operations have seized approximately 16.7 tonne of illicit tobacco and more than 13.4 million illicit cigarettes, equating to approximately $45 million in forgone excise.
The Shadow Economy Taskforce has made 174 disclosures to member agencies in line with the Memorandum of Understanding and Regulations.
Other business
The co-chair outlined the governance processes including:
- a summary of the completed deep dive workshops for the year
- Treasury to provide detailed update at next meeting
- SEAF co-chairs to provide a presentation to COSBOA on Shadow Economy in December
- annual survey and review of membership composition completed
- completion of mandatory Integrity Declaration forms by SEAF members
- interest in members attending a face-to-face meeting in the future.