The federal government is ramping up its crackdown on illegal phoenixing with a $360 million boost for the Australian Taxation Office (ATO). This funding will modernise tax systems, increase penalties for black economy activities and extend anti-phoenixing compliance programs.
Illegal phoenixing occurs when a company is liquidated to dodge debts, only to re-emerge under a new name, continuing business as usual. This practice exploits workers, disrupts supply chains, harms suppliers, and creates unfair competition for law-abiding businesses.
The funding was revealed in the mid-year budget update, released in December, and includes $68 million that will go towards the ATO and the Australian Securities and Investments Commission (ASIC) to support the Phoenix Compliance Program from 1 July 2025,
Over five years, the government expects this program to deliver $278 million in extra tax revenue, $150 million in payments, and $80 million in additional GST for states and territories.
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