The ATO has hit a major milestone of over 300,000 tip-offs from the community about tax avoidance and other dishonest behaviours since 1 July 2019. In the 2024/25 financial year alone, almost 50,000 red flags were raised by members of the community who spotted something suspicious.

Most of the tip-offs received related to shadow economy activity, coming from customers, employees, other businesses, and even family and friends.

This year, Australians reported businesses and individuals who:

• did not declare their income;
• demanded or paid for work in cash to avoid tax;
• lived lifestyles that did not match their known income; and
• failed to report all sales.

The top three industries seeing a surge in 'red flags' this financial year are:

• building and construction;
• cafes and restaurants; and
• hairdressing and beauty services.

Please note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information's applicability to their particular circumstances.