Geoffrey Yiu and Stephanie Tsang are preparing KPMG's submission to Australia's Black Economy Taskforce.
KPMG will be making a submission to the Black Economy Taskforce. If you would like to raise any points with us, please contact us by 28 July 2017. By way of background, the black economy broadly refers to people who operate entirely outside the tax system or who are known to tax authorities but deliberately misreport their tax obligations. There are adverse economic and social implications of black economy activity, including:
The Black Economy Taskforce has been established to address these issues and is led by an independent Chair, Michael Andrew AO, and supported by the Commonwealth Treasury.
The Taskforce has found black economy activity is widespread in labour-hire companies (e.g. cleaning, fruit picking, abattoirs), cafes and restaurants, hair and beauty, building and construction, and child care services.
The Taskforce’s Interim Report was released together with this year’s Federal Budget and it contained 35 initial recommendations. The Taskforce has recently completed a series of town halls and we understand that there are now another 40 or so recommendations under consideration, potentially to be included in the Taskforce’s Final Report to be delivered in October 2017.
The final report is expected to include an overarching whole of government policy framework and detailed proposals for action to counter the black economy.
Some of the recommendations being considered include:
This is an important piece of work that KPMG will assist through making a submission to the Taskforce.