This audit was undertaken to provide assurance to the Parliament that the Australian Government’s response to the Black Economy Taskforce report is being implemented effectively to combat the shadow economy.

• The Taskforce made 80 recommendations to the Government, of which 27 were agreed.
• More than 15 entities are involved in the implementation of the Taskforce report.
• The Taskforce found the shadow economy was growing and evolving in step with wider economic, technological and social change.
• It also found that there was a need for better governance within the Australian Public Service to address shadow economy risks.

Key findings:

• The Department of the Treasury (Treasury) did not establish a framework to assess the effectiveness of the implementation of the Taskforce report and, as such, it is not evident that outcomes have been achieved.
• Treasury is not effective in coordinating the implementation of the report.
• The Australian Taxation Office (ATO) and the Department of Home Affairs (Home Affairs) are largely effective in implementing their recommendations. Treasury is not effective in implementing its recommendations and partly effective with regards to recommendations with shared responsibilities.

Recommendations of this audit:

• There were four recommendations aimed at improving governance, updating public information, progressing implementation, and enhancing evaluation.
• Entities agreed to three recommendations and agreed in part with one.