How accurate are you when reporting to the ATO?

Ana Reilly • October 20, 2025

How accurate are you when reporting to the ATO?

Understanding How Many Small Business Owners Make Tax Errors in Australia


According to the ATO’s Small Business Random Enquiry Program (covering 2018–19 through 2020–21), out of a sample of 1,795 small business taxpayers:

  • 61% reported correctly.

  • 30% attempted to get it right but made mistakes—often due to poor record keeping, reconciliation errors, or misunderstandings of the tax law.

  • 4% under‑reported income or exaggerated expenses, likely not intentionally.

  • 5% were clearly operating in the shadow economy, deliberately avoiding tax. Importantly, that 5% accounted for about 55% of the total revenue shortfall identified.



https://www.ato.gov.au/about-ato/learn-about-tax-and-the-ato/tax-and-small-business/small-business-random-enquiry-program-findings



By Ana Reilly August 30, 2026
Two methods to calculating your Fringe Benefits Tax on motor vehicles.
By Ana Reilly August 30, 2026
Buying a premises with your business partner
By Ana Reilly August 30, 2026
Meet Vicky
By Ana Reilly August 30, 2026
Registering for GST when buying a commercial property
By Ana Reilly August 30, 2026
Anti Money Laundering
By Ana Reilly July 29, 2026
Anti Money Laundering
By Ana Reilly July 29, 2026
New Financial Year Tip
By Ana Reilly July 29, 2026
Client Horror Story
By Ana Reilly July 29, 2026
Client Testimonial
By Ana Reilly July 29, 2026
Managing Tax & Financial Responsibilities after Someone Passes Away