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Melbourne, VIC

Melbourne businesses cop surprise ATO visit as part of operation to expose tax cheats in shadow economy

7NEWS
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  • More than two dozen restaurants, fast food outlets and cafes in an Australian city known for its coffee have been investigated as part of the tax office’s ongoing battle to disrupt the country’s $80 billion shadow economy.
  • The ATO did not say which businesses were looked into but that their investigations are ongoing.
  • The size of Australia’s shadow economy is estimated to have been more than $80 billion in 2025, and it is believed to have doubled in the last decade.
  • Information reported to the ATO is cross-checked against its data and intelligence sources, and shared with partner agencies through the Shadow Economy Taskforce.

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Melbourne city skyline from the perspective of Port Melbourne
Melbourne city skyline from the perspective of Port Melbourne Bob Tan / Wikimedia Commons, CC BY

More than two dozen restaurants, fast food outlets and cafes in an Australian city known for its coffee have been investigated as part of the tax office’s ongoing battle to disrupt the country’s $80 billion shadow economy.

The ATO made surprise visits to 25 hospitality businesses in Melbourne ’s CBD on Tuesday and Wednesday off the back of community tip-offs about cash-in-hand payments, issues with record keeping and missed super benefit programs.

The ATO did not say which businesses were looked into but that their investigations are ongoing.

The shadow economy refers to economic activity that is not reported and taxed.

The size of Australia’s shadow economy is estimated to have been more than $80 billion in 2025, and it is believed to have doubled in the last decade.

Takeaway businesses, cafes and restaurants, pubs, taverns, bars and catering services were the source of more than 2500 reports about off-the-books activity in the 2025-26 financial year.

Information reported to the ATO is cross-checked against its data and intelligence sources, and shared with partner agencies through the Shadow Economy Taskforce.

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7NEWSas they published this story 8.1 5 77 -0.5 51.2
Mundane Readneutralized from 7NEWS 4.8 3 77 0 51.2

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