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Government Federal, Taxation

The tide is turning on tax cheats: diners expose shadow economy

Australian Taxation Office 4 mins read

New figures released by the Australian Taxation Office (ATO) today show more than 52,000 tip-offs were made during 2025–26, with approximately 1,000 reports every week from community members concerned about businesses and individuals doing the wrong thing.

The community is continuing to speak up when they see unacceptable behaviour, like people evading their fair share of tax, employers not paying their employees super and other shadow economy activities.

ATO Assistant Commissioner Tony Goding said the community is playing an increasingly important role in protecting honest businesses and maintaining confidence in the tax and super system.

‘Aussies know when something doesn’t seem right, and they're increasingly calling it out when they see someone trying to gain an unfair advantage by operating in the shadows.’

‘Much of our most valuable intelligence comes directly from community tip-offs. Often, it's a worker, customer or competitor who recognises something that doesn't seem right.’

‘Those who deliberately avoid paying tax and super aren't just breaking the law, they're undermining honest businesses that are playing by the rules every day,’ Mr Goding said.

Melbourne eateries under the spotlight

While tip-offs cover a range of industries and behaviours, one area attracting significant community attention this year has been Melbourne's fast food, restaurant and café sector.

The hospitality industry including cafés and restaurants, catering services, pubs, taverns and bars, and takeaway food outlets accounted for over 2,500 of all tip-offs received nationally, with allegations of:

  • not declaring all income
  • demanding or paying for work cash in hand to avoid obligations
  • not paying the correct super for employees.

‘We understand many fast food, restaurant and café owners have a lot on their plate, but deliberately avoiding your tax and super obligations isn't the recipe for success.’

‘The vast majority of owners are honest operators who pay the right amount of tax and meet their employee entitlements.’

‘What really leaves a bad taste is when businesses doing the right thing see their competitors cutting corners, ripping off workers and skimming off the top to gain an unfair advantage,’ Mr Goding said.

Tip-offs trigger Tonberry

Acting on intelligence from community tip-offs, the ATO conducted more than 25 surprise visits to fast food outlets, restaurants and cafés across Melbourne’s CBD on 22 and 23 September.

As part of Operation Tonberry, the ATO is investigating businesses suspected of:

  • paying workers cash-in-hand to avoid tax obligations
  • not paying their employees’ super entitlements
  • under reporting or omitting income
  • compliance issues with reporting and record-keeping.

‘Melbourne diners know a busy café when they see one, so do we.’

‘When a venue is packed, staff are flat out and the coffee machine never stops, but the books tell a different story, that’s something we’re going to take a closer look at.’

‘In a city where competition is fierce, some operators can be tempted to look for shortcuts to boost profits. What they need to understand is that cutting corners can quickly become a dead end.’

‘Operation Tonberry is about making sure businesses that play by the rules aren't disadvantaged by those who don't,’ Mr Goding said.

Investigations are ongoing.

The community is watching

This year Australians most commonly reported businesses in the building and construction, café and restaurant and hairdressing and beauty services industries. Most tip-offs involved businesses and individuals suspected of:

  • not declaring all income
  • demanding or paying for work cash in hand to avoid obligations
  • having a lifestyle that does not match their income.

In practice, this might look like a busy takeaway shop that accepts only cash hinting to customers it’s to hide their earnings from the ATO, employees who don't receive payslips or super, or a business that always seems packed but reports little or no income.

These are the types of concerns people are bringing to the ATO's attention.

‘You can only attempt to hide in the shadows for so long.’

‘Tax crime leaves tell-tale signs, and the community is getting better at spotting them, and less tolerant of people getting away with these activities,’ Mr Goding said.

Intelligence that leads to action

During 2025–26, approximately 83% of tip-offs received were assessed as suitable for further review, helping identify risks that warrant closer scrutiny.

Information received through tip-offs is analysed and cross-checked against ATO data holdings and intelligence sources. Information is also shared with partner agencies like the Fair Work Ombudsman through the Shadow Economy Taskforce.

Since 1 July 2019, the ATO has received more than 360,000 tip-offs about suspected tax evasion and other dishonest behaviours.

‘The message is simple: if you're deliberately avoiding your tax or super obligations, there's a good chance someone will notice.’

‘Whether it's an employee, customer, supplier, former partner, competitor or member of the public, there are eyes everywhere.’

‘Those operating in the shadows should know it’s harder and harder to stay hidden,’ Mr Goding said.

Help keep the system fair

If you suspect someone is deliberately avoiding their tax or super obligations, you can report it to the ATO anonymously at www.ato.gov.au/tipoff or by calling 1800 060 062.

Community tip-offs are one of the ATO's most valuable sources of intelligence. Every tip-off is assessed, cross-checked against available information and, where appropriate, used to support compliance action.

‘It only takes a few minutes to make a tip-off, and you can do so anonymously,’ Mr Goding said.

Notes to journalists


Contact details:

[email protected] | 02 6216 1901

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