Employer non-compliance has resurfaced over the past fortnight, with two major news headlines. The Turnbull government announced a Black Economy Taskforce to target illegal cash payments while celebrity chef George Colombaris reimbursed 200 staff $2.6 million for inadvertent underpayments over the past six years. The noise is enough to strike fear into small business owners around Australia.
The ABS estimates that the ‘black economy’, generally referring to businesses operating outside the tax system, is worth close to $21 billion annually. Under-the-table cash payments are the most common variant. About $15 billion is lost from the budget to tax avoidance and fraudulently claimed welfare payments.
While a few businesses are outright tax dodgers, many are innocent parties who are unable to understand our complex laws. This was the case for Mr Colombaris. Board of Taxation chairman Michael Andrew identified the complex modern award conditions and a lack of coherence between national and state regulation as major contributing factors.
“You have to fill out 48 different government forms and have 72 licences just to set up a restaurant in NSW… that’s causing people to lose confidence in the system,” Mr Andrew said and similar hurdles are observed in other states and territories.
Crack down efforts
The Black Economy Taskforce will utilise technology to catch employers. The ATO is already using data-matching in attempts to punish wrongdoers. There has also been talk of limiting cash transactions, and the possibility of removing the $100 note from circulation altogether. The introduction of deeper Standard Business Reporting requirements by the ATO will also have an impact.
The solution…..better systems
Complex workplace regulatory requirements are a reality that all employers need to grapple with and adopting software systems can help you sleep at night knowing you are compliant. With Standard Business Reporting capabilities and other stringent measures foundU’s workforce management Platform, will help you rest assured that you are operating in line with overwhelming State and Commonwealth legislation.
If you have 5 minutes, email me and see it for yourself– firstname.lastname@example.org