Tax cheats: Australians make a record number of tip-offs

1000 suspected tax cheats dobbed in each week, dodgy sales tactics to watch for during Black Friday and Menulog customers need to hurry to claim credits. Here are five things you may have missed this week.

Aussies dob in tax dodgers in record numbers

Dobbing may be seen as un-Australian, but not when it comes to tax cheats.

The Australian Tax Office (ATO) receives almost 1000 tip-offs every week from people who know or strongly suspect tax evasion.

The ATO has received more than 300,000 tip-offs from the community about tax avoidance and other dishonest behaviours since mid-2019.

In the last financial year alone, almost 50,000 red flags were raised by people who spotted something suspicious.

Most of the tip-offs relate to shadow economy activity, like demanding payment in cash.

"When someone cheats the system, they're not just breaking the law, they're freeloading on the rest of the community," says Tom Goding, ATO assistant commissioner.

It's not just 'cash only' signs that can raise eyebrows.

A luxury car parked outside a business that claims to be struggling, or a café that's always busy but never seems to report profits, are among the red flags that have raised the hackles of consumers.

The top 3 industries that have seen a surge in red flag reports this year are: building and construction; cafés and restaurants; and hairdressing and beauty services.

Around 85% of tip-offs received by the ATO are investigated further.

If you suspect someone is ripping off the tax system, you can raise a red flag by calling the ATO on 1800 060 062. You can remain anonymous.

ACCC puts retailers on notice ahead of Black Friday

Australians are expected to spend a record $6.8 billion over the Black Friday weekend starting 28 November.

That's according to the Australian Retailers Association, which says almost half (45%) of us are waiting for the Black Friday bargain bonanza to make a big ticket buy.

Meanwhile, consumer watchdog - the Australian Competition and Consumer Commission (ACCC) - will be the cop on the beat during the sales extravaganza, conducting a Black Friday sweep to crack down on misleading or deceptive advertising.

Among the dodgy sales tactics the ACCC will look for are claims of 'store-wide' discounts, when not every item is marked down.

Well-known retailers My House, Michael Hill and Hairhouse online are among the stores that have copped fines for allegedly making false and misleading representations about their Black Friday Sales.

ACCC deputy chair, Catriona Lowe, is urging bargain hunters to take action of their own.

"If consumers are waiting for the Black Friday sales to make a big purchase, we encourage them to consider checking the prices now before sales start, so they can compare the price and determine if they are making a legitimate saving."

Menulog calls it a day - customers need to act fast

Australia's only home-grown food delivery platform, Menulog, has announced it will shut its doors for good on 26 November.

Citing "challenging circumstances" for the closure, Menulog is giving customers until the 26th to claim any unused vouchers or credits.

Menulog's departure leaves UberEats and DoorDash to battle it out in a market that sees Australians spend around $40 each week having restaurant meals home delivered.

Fun fact: DoorDash's latest Delivery Trends Report shows comfort foods rank high on our choice of home deliveries.

Over nine in ten (91%) consumers have ordered food delivery to satisfy a craving, with many of the top five foods ordered on DoorDash in 2024 being feelgood foods including:

• Hot chips
• Garlic naan
• Butter chicken
• Potato cakes / potato scallops
• Special fried rice

UBank launches 10% deposit, zero-LMI loan

UBank - the digital arm of NAB - now offers a 10% deposit home loan. Nothing new about this, except that UBank's loan waives lenders mortgage insurance (LMI).

And the loan isn't limited to first home buyers. Property investors can apply too.

The LMI waiver can be a big money saver. On a home worth, say, $600,000, buying with a 10% deposit ($60,000) could see the buyer cop an LMI premium of around $13,300.

Ray Jokhan, Chief Home Lending Officer at UBank, says the bank's new 10% deposit and no LMI home loan offers real hope to younger buyers eager to enter the property market sooner.

While low deposit loans aren't for everyone, Jokhan notes this product may offer earlier access to the market and the potential to build equity over time.

"We've already seen customers buy sooner with our existing 15% deposit product, using it as a stepping stone to their first home. As they build equity and their loan-to-value ratio drops below 80%, they become eligible for better rates."

Once an apartment owner, always an apartment owner?

Apartments are often popular among first home buyers, who see a unit as a way to get started on the property ladder, with plans to switch to a house later on

The trouble is, unit buyers may find their apartment isn't such a good stepping stone after all.

In the three months to October, house prices nationally rose 3.1% compared to 2.3% for units. Cotality says this has stretched the price gap between units and houses to record levels.

Across our capital cities, the median unit value is $728,059. That's $363,075 less than the median house price of $1,091,134 according to Cotality data.

The price difference is just shy of half the median capital city unit value. But it's as high as 77.8% in Sydney.

Cotality Economist, Kaytlin Ezzy, says affordability constraints are likely to see more buyers opting for units in cities like Sydney in the short term.

She adds, over the long term houses are still likely to outperform "even if the premium on houses falls".

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