The ATO is stepping up compliance action against businesses that omit income, over-claim expenses and GST credits, or use business income to pay for private expenses.
Common errors the ATO continues to see include:
not reporting all business income, including cash sales and contractor income;
paying workers in cash to avoid tax and super obligations;
claiming private expenses as business deductions, or incorrectly claiming GST credits;
using business bank accounts, credit cards or assets for private expenses; and
failing to keep accurate records of business transactions.
The ATO reports that its audits uncovered more than $210 million in unpaid taxes in the 2026 income year.
The ATO also issued more than $50 million in penalties to businesses that deliberately omitted or under-reported income, such as cash payments.