The ATO is ‘cracking down’ on businesses that use cash to avoid meeting their tax, employer and business obligations.  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.