Australians made almost 50,000 tip-offs about tax evasion in the 2024-2025 financial year, according to the Australian Taxation Office (ATO).
Back in July 2019, the ATO launched its public whistleblower service, encouraging Australians to report businesses and individuals they suspected of committing tax evasion or other similar conduct.
On Thursday, the ATO said there had been more than 300,000 tip-offs from the Australian public about tax avoidance and "other dishonest behaviours" since it launched the service six years ago.
The tax office said it receives almost 1,000 tip-offs every week from people who know or strongly suspect a business or individual is committing tax evasion.
What behaviours did Australians tip off the ATO about?
According to the ATO, the behaviours that people reported to the tax office in the last financial year included businesses and individuals who didn’t declare their income, lived lifestyles that didn't match their known income, or failed to report all sales.
But the ATO said the majority of tip-offs related to the 'shadow economy' — economic activity that is not reported or taxed, such as demanding cash payment for work or incorrectly claiming business expenses.
The ATO said this behaviour results in billions of dollars in lost taxes every year.
ATO assistant commissioner Tony Goding said businesses that dodge tax and super obligations were stealing from fellow Australians: "freeloading on honest businesses and the rest of the community".
"It's unfair competition and it's illegal. And when you’re caught, you don’t just have to cough up the tax. You’ll also face significant penalties plus interest on unpaid taxes and possibly even criminal sanctions."
Where did most tip-offs come from?
NSW was the state with the highest number of tip-offs in 2024-25, at 15,907.
Victorians lodged 11,890 tip-offs, with Queensland behind at 10,630.
The ATO said that while Sydney and Melbourne attracted the highest number of tip-offs, of the top five regional areas for tip-offs, most were in Queensland.
Newcastle, NSW, topped the list of regional areas for tip-offs, before Robina, the Sunshine Coast hinterland, Townsville and Toowoomba — all in Queensland.
What industries have had an increase in tip-offs?
The ATO said three industries had experienced a surge in red flags this year.
Those were the building and construction industry, hospitality businesses such as cafés and restaurants, and hairdressing and beauty services.
"With tip-offs often coming from customers, employees, other businesses, and even family and friends, the community is clearly fed up with dodgy behaviours and is stepping up to help us make things fairer," Goding said.
What happens when the ATO receives a tip-off?
Goding said that when the ATO receives information through a tip-off, it cross-checks that information and assesses whether further action is required.
In the last financial year, around 85 per cent of tip-offs the ATO analysed were found to be suitable for further investigation.
Goding said investigations were carried out by specialised teams within the ATO who then shared information with cross-agency partners, including the Shadow Economy Taskforce.
The taskforce is an ATO-led joint agency that also includes the Australian Federal Police, Australian Border Force, Fair Work Ombudsman and others.
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