A cheaper “cash price” might sound attractive. But for businesses and workers, the risks can be far bigger than the savings. The ATO has recently stepped up its focus on businesses using cash to avoid tax and employment obligations.

While most business owners do the right thing, a small number are still operating partly “off the books.” This can include practices such as:

• Not reporting all sales or failing to issue receipts
• Avoiding GST, income tax, PAYG withholding or super obligations
• Keeping turnover under the $75,000 GST registration threshold by under-reporting income
• Paying workers cash while ignoring award conditions and workplace protections
• Undercutting compliant businesses by offering lower “cash-only” prices

The consequences can be serious. For businesses, penalties and audits can quickly follow if the ATO detects undeclared income.

For workers, the impact can be even worse. Employees paid cash-in-hand may miss out on superannuation, leave entitlements and proper wages. And if they’re injured at work, they may discover they have no insurance protection or workers’ compensation coverage.

In other words, what looks like a simple cash arrangement can leave both sides exposed.Running a clean, transparent business isn’t just about compliance — it protects you, your staff and the long-term value of your business.

If you’re unsure whether your systems, payroll or reporting processes are set up correctly, it’s worth reviewing them now before the ATO comes knocking. If you would like a little help, please get in touch with us for assistance.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements. To book an appointment, use our online booking system, give us a call on 07 3289 1700, or email us at reception@rgaaccounting.com.au.We look forward to assisting you this tax season!

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.