Published: February 2026
If you take cash jobs, even occasionally, the ATO is sharpening its tools to spot missing income and off-the-books payments.
The ATO is comparing sales and expenses against industry benchmarks and matching data from banks, payment services and suppliers. From 1 July 2025, a boost to the Shadow Economy Compliance Program means more reviews and audits, especially in cash-heavy sectors.
With extra funding and stronger data matching, now’s the time to tidy your books. Read more to learn how clean, consistent records can become your best defence.
Table of Contents
Steps to Take Today
Record every sale (cash, card, online) in your POS; reconcile POS to bank to accounting weekly; keep separate floats and cash count sheets. Keep tax invoices, note the business purpose, split private portions, and store documents digitally with backups. Classify workers correctly, report STP on time, issue payslips, pay superannuation by due dates, apply PAYG where required, and lodge BAS/IAS on time.
Warning Signs the ATO Picks Up
Unusually low cash sales for your industry, high voids or discounts without notes, margins thinner than peers, large unexplained cash withdrawals, and “contractors” who look like employees.
How to Respond if the ATO Gets in Touch
- Don’t ignore it; note deadlines.
- Gather records: sales summaries, bank statements, payroll/STP and super proofs, invoices/receipts.
- Explain variances with facts (seasonality, one-offs, stock issues).
- Get advice early from your bookkeeper or BAS/tax adviser.
Keep your compliance sharp
With the ATO moving faster and using more data-matching, compliance is no longer something you “catch up on” at BAS time. The businesses that stay calm during reviews are usually the ones with consistent habits: clean coding, regular reconciliations, well-kept invoices, and payroll that’s set up correctly from the start.
A few practical improvements like tightening weekly checks, documenting unusual transactions, and keeping payroll and super on schedule can dramatically reduce risk and stress. It also makes it easier to answer ATO questions quickly, because you can show how figures were calculated and why something may differ from a benchmark.
If you’d like a structured way to strengthen your day-to-day processes, stay current, or simply start somewhere, we offer a range of courses to suit your needs:
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FNS40222 Certificate IV in Accounting and Bookkeeping — Designed for aspiring bookkeepers and accounts staff, with a strong focus on day-to-day bookkeeping skills such as reconciliations, accurate coding, and maintaining compliant records.
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FNS30322 Certificate III in Accounts Administration — Ideal for entry-level accounts administration roles, covering essential tasks like accounts payable/receivable and basic payroll support.
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Introductory Bookkeeping and Accounting Training Bundle — A practical short course for small business owners and staff who want hands-on knowledge across common bookkeeping and accounting tasks, including using popular accounting software.
All courses are 100% online and self-paced, so you can study when it suits you. Find the right course for you today.
— The Applied Education team
