Declare it all. Or risk everything.
Tradies who do undeclared cash jobs can be hit with tax penalties, or criminal convictions that could lead to prison – costing them their business and their income.
Doing jobs for cash or for your mates is okay - as long as you record them and declare the income when you're filing your annual tax return.
Make sure that:
- you record every job, no matter how big or small.
- if you're registered for GST you charge it. You must register for GST when your annual turnover is more than $60,000
- you register your employees
- you declare all your income when you file your tax return.
If you're already paying tax on all your income, there's nothing more you need to do.
Absolutely - cash jobs leave a trail, and we've got a lot of ways to follow them.
If two tradies work together and one declares a job the other doesn't, they can be dobbed in without realising it. If we audit one person, it might indicate another business or contractor that needs to be audited. Also, there's always a chance of a random audit.
We can see when tradies buy supplies, such as paint, carpet or timber, without a corresponding declared job. We can also access information held by other Government departments, banks, loyalty cards, casinos, and many other organisations to make sure all income is being declared.
It's okay to do cash jobs - you just need to declare them on your annual tax return.
If you've left some income off your tax return, tell us now, rather than waiting for us to find out some other way.
By making a full voluntary disclosure, you can have your shortfall penalty reduced by up to 100% and avoid prosecution.
If you choose not to tell us, you risk facing late payment penalties, shortfall penalties, and prosecution in court.
You have an important role in keeping your industry fair for all. If you know someone who is doing undeclared cash jobs, you can let us know confidentially.
It's never too late to do the right thing
If you need help putting your returns right, please contact your tax agent.
If you'd prefer to talk it through with us, you can make an appointment with one of our Community Compliance Officers - we'll even come to you if you prefer.