What attracts our attention in small business

What attracts our attention and what we're doing about it

We will be clear and tell you what we are concerned about, why we are concerned and what we will be doing about it. This is to help you get it right the first time and help us be transparent in our dealings with you.

Risky behaviours that are attracting our attention are small businesses that:

• knowingly operate outside of the system, like not declaring all income and over-claiming expenses
• deliberately don't report or register correctly, and don't lodge and pay in full and on time
• don't know their tax and super obligations, including those of their employees
• employers who pay in cash and don't declare income to avoid their tax and super obligations
• use business funds and assets to support their personal lifestyle, tax-free
• have poor record keeping and/or cash flow management

We provide this information to:

• be transparent about what draws our attention
• be clear about the consequences of operating outside of the system
• help guide conversations between small businesses and their tax professionals
• encourage people to set up good business habits from the start.

How we define a small business

When we say small business, we mean a sole trader, company, trust or partnership that both:

• operates a business for all or part of the financial year
• has an aggregated annual turnover of less than $10 million.

Your concerns

If you're concerned about your tax or super position, you can:

• engage with us for advice
• correct a mistake by requesting an amendment or making a voluntary disclosure
• contact your registered tax professional for help and advice.

If you know or suspect illegal phoenix activity, tax evasion or shadow economy behaviour you can either:

• complete the tip-off formOpens in a new window, which is also available in the contact us section of the ATO app
• phone the Shadow Economy hotline on 1800 060 062.

The information you provide is treated confidentially, and tip-offs can be made anonymously. There are laws that will protect your privacy.