The measures announced in tonight’s Federal Budget to address the issues associated with the Black Economy will help sustain the tax cuts promised over the next few years, according to the Institute of Public Accountants (IPA).

“Integrity measures addressing tax leakages will reduce the high tax burden on PAYG
taxpayers,” said IPA chief executive officer, Andrew Conway.

“Businesses operating in the cash economy, contractors and participants in the gig economy represent a revenue challenge for the ATO.

“The IPA has always advocated that everyone should pay their fair share of taxes.

“The measures announced tonight such as further expansion of payment reporting, introduction of cash payment limits and funding for enhanced ATO enforcement will help plug some of the leakages from our tax system.

“These measures represent further implementation of recommendations contained in the Black Economy Taskforce final report and we expect the Government to announce further measures when the report is finally tabled for public release.

“We know that the black or cash economy is rife with more cash in circulation than ever before; expanding mandatory reporting to high risk business sectors will alter this evasive behaviour.

“When mandatory reporting was introduced to the building and construction sector, the Government reaped over a $2.3 billion in a twelve month period, which would have otherwise been lost revenue.

“If we are to sustain any reductions in taxation, Australia must curb the expenditure side of the ledger in addition to measures that reduce the revenue leakages.

“Those participating in the Black Economy are receiving an unfair tax advantage which does not result in a level playing field.

“The Government will be setting up Black Economy Taskforce implementation team to manage responses to the Report’s recommendations with a five year implementation period.

“The IPA looks forward to full release of the Black Economy Taskforce final report and the Governments responses to all the recommendations contained in it ,” said Mr Conway.