Audits

ATO Shadow Economy Crackdown: $231M Funding

ATO Shadow Economy Crackdown: $231M Funding

The ATO shadow economy crackdown got a significant boost on 12 May 2026, when Treasurer Jim Chalmers handed down the 2026-27 Federal Budget and announced a multi-year compliance package worth approximately $281 million in total. The centrepiece is $155.5 million over four years directed squarely at the shadow economy — undeclared income, cash-in-hand arrangements, GST evasion, and a range of related activity the ATO has been building its enforcement capability around for years. If you run a small business, operate as a contractor, or earn anything on the side, now is the time to understand what changed and what it means for you.

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