The road freight transport industry is ranked number 8 in the latest Australian Taxation Office (ATO) list of top tipped-off industries suspected of dodging tax commitments.
In the last financial year the ATO said almost 50,000 red flags were raised by the community who spotted something suspicious across all industries, with building and construction, cafés and restaurants and hairdressing and beauty services at the top of the list.
The ATO said the top 3 shadow economy behaviours reported include:
- Cash transactions
- Mistreatment of workers
- Criminal activities and fraud.
As part of the ATO’s focus on the shadow economy, a spokesperson said the taxable payments annual report (TPAR) is one measure designed to ensure contractors providing certain services, including courier services and road freight, report all their income and pay the right amount of tax.
“Practically, the Taxable Payment Reporting System requires entities in high-risk industries to report payments made to contractors,” the spokesperson said.
“We use this data to assist in identifying those who engage in shadow economy behaviours, including incorrect registration, omitted income or non-lodgment.
“During the 2024–25 financial year, we strengthened tax compliance by providing visibility of over $485 billion in gross TPAR payments made by nearly 176,000 businesses to over 1.3 million contractors. This transparency enables the use of pre-fill data and transaction services reports to support accurate reporting and reduce non-compliance among contractors.”
Earlier this week Queensland Trucking Association CEO Gary Mahon, however, criticised the TPAR system used to capture ABN labour abuses, calling it a “misguided hope” and urging the ATO to consider more effective solutions.
Mahon’s plea came as industry bosses and government heads gathered in Canberra to discuss ways to stamp out the increasing abuse of the ABN system in the road freight industry.
A statement released after the roundtable said it was agreed the ATO would review how the TPAR is used to identify and action incorrect registration omitted income, labour expenses and non-lodgement to better ensure those who engage in shadow economy behaviour and deliberately operate outside the tax system are detected by the ATO.
The ATO said it is committed to tackling the shadow economy and creating a level playing field spearheaded by its Shadow Economy Program which has been extended to June 30, 2029.
You can confidentially provide a tip-off about a business that is incorrectly treating an employee as an independent contractor by completing the tip-off form. Visit ato.gov.au and search ‘tip-off form’.
This form is also available in the Contact us section of the ATO app or by calling 1800 060 062.