The ATO is ‘cracking down’ on businesses that use cash to dodge obligations on their tax, employer and business. Businesses that do this may:
– fail to report all sales transactions and fail to issue receipts;
– avoid paying GST, income tax, PAYG withholding, super guarantee, insurance and work cover protection;
– report their income below the $75,000 threshold to avoid registering for GST;
– exploit workers by not meeting award conditions and work cover protections; or
– undercut honest businesses by offering cheaper prices for cash.
The ATO warns that workers who are paid cash-in-hand or working ‘off the books’ are often disadvantaged. Apart from not receiving the entitlements they should be, if they are injured at work, they may not be protected.
