Illegal phoenixing is viewed as a particular issue which needs to be dealt with. Business operators who repeatedly become insolvent cheat trade creditors and employees and undercut legitimate operators. The Taskforce has heard that there is an entire industry supporting phoenixing by providing advice prior to a company winding up on how to structure the business in order to avoid obligations. In some industries workers are routinely underpaid in the form of offthebook cash This can involve employees either being required to pay back a proportion of their wages to their employer or by being forced into sham contracting arrangements. Temporary visa holders are particularly vulnerable to being exploited given their concern about the potential implications for their visa or employment status if they speak out. New technologies a wealth of opportunities for countering the black economy. For example, smartphone or tablet applications have been developed to simplify processes for businesses, secure on line trading facilities, reduce compliance burdens and provide a onestop store of information. Payment and other electronic transfer applications have and will continue to accelerate the move towards a cashless economy. Greater application of data analytics may offer significant new information to government allowing better targeting of services as well as anti-black economy efforts. Many small businesses do not have a good understanding of financial management and the tax and superannuation systems. Stakeholders consider that better education in financial management, and tax in particular, especially for those setting up a business for the first time is necessary. Simple and low cost business and accounting systems would also help. Feedback from industry associations indicates that in industries where businesses need to have a license to operate the level of compliance is generally higher. Associations in these industries help their members with compliance, for example by providing information, hotlines and other support.
Illegal phoenixing is viewed as a particular issue which needs to be dealt with. Business operators who repeatedly become insolvent cheat trade creditors and employees and undercut legitimate operators. The Taskforce has heard that there is an entire industry supporting phoenixing by providing advice prior to a company winding up on how to structure the business in order to avoid obligations. In some industries workers are routinely underpaid in the form of offthebook cash This can involve employees either being required to pay back a proportion of their wages to their employer or by being forced into sham contracting arrangements. Temporary visa holders are particularly vulnerable to being exploited given their concern about the potential implications for their visa or employment status if they speak out. New technologies a wealth of opportunities for countering the black economy. For example, smartphone or tablet applications have been developed to simplify processes for businesses, secure on line trading facilities, reduce compliance burdens and provide a onestop store of information. Payment and other electronic transfer applications have and will continue to accelerate the move towards a cashless economy. Greater application of data analytics may offer significant new information to government allowing better targeting of services as well as anti-black economy efforts. Many small businesses do not have a good understanding of financial management and the tax and superannuation systems. Stakeholders consider that better education in financial management, and tax in particular, especially for those setting up a business for the first time is necessary. Simple and low cost business and accounting systems would also help. Feedback from industry associations indicates that in industries where businesses need to have a license to operate the level of compliance is generally higher. Associations in these industries help their members with compliance, for example by providing information, hotlines and other support.