A report from KPMG has advised that targeting the black economy could “conservatively” generate revenue of nearly $6 billion for the Federal Budget, including an extra $2.5 billion in business taxes and an additional $1.2 billion in goods and services tax revenue. KPMG’s recommendations include banning income tax deductions for wages paid in cash and prohibiting cash transactions of more than $100,000. The Government’s May 2018 Budget is expected to include its response to the final report of a black economy taskforce. From The Australian:
“At a time when other revenue measures are struggling for bipartisan support, the proposed crackdown on the black economy is more likely to gain passage through the Senate, generating much-needed additional revenue for budget repair,” said Grant Wardell-Johnson, a KPMG partner at the Economics and Tax Centre.
