The ‘black economy’ is refers to those who operate entirely outside the tax system, according to the office of Minister for Revenue and Financial Services, Kelly O’Dwyer.
It also includes those who are known to tax authorities, but deliberately misreport their tax and superannuation obligations.
“Nothing makes fair-minded Australians angrier than having to pay more tax as a result of someone else not paying the tax that they are supposed to pay,” Ms O’Dwyer said.
The federal government confirmed a taskforce has been established to crack down on the black economy.
The taskforce will be headed by former chair of the B20 anti-corruption taskforce, Michael Andrew.
Other participants include the Reserve Bank of Australia, the Australian Federal Police, ASIC, APRA, AUSTRAC and the Departments of Human Services and Immigration.
The taskforce will provide an interim report to the government in March 2017, with a final report due on October 2017.
The final report will include an overarching government policy framework and detailed proposals for action to counter the black economy.
