ATO recovers $190 million as phoenixing crackdown expands
The Phoenix Taskforce recovered $190 million in the past year. It has found more than $3.26 billion in hidden debts since it started in 2014.
The Australian Taxation Office reported that a dedicated anti-phoenixing taskforce recovered $190 million in cash during 2025-26. Overall, it has recovered $1.44 billion since 2014.
Phoenixing is when a collapsed company avoids its debts by running the same business under a new company. The taskforce received 3,870 tip-offs during the year.
It completed 420 audits during the year. One construction sector scheme involved some $1.6 million in tax debts.
A property developer was ordered to repay $9.4 million. This was after closing companies six times in five years.
The ATO estimates phoenixing costs Australian workers, businesses, and government $4.89 billion every year.
- $190 million
- Recovered 2025-26
- $1.44 billion
- Total returned since 2014
- $3.26 billion
- Total liabilities found
- $4.89 billion
- Annual cost to economy
Why it mattersPhoenixing leaves workers unpaid and creditors out of pocket. It also leaves tax unpaid. The ATO's enforcement results show consequences are real for offenders.
AustraliaThese recoveries return money to Australian communities and signal to businesses that the tax office is actively pursuing schemes that dodge obligations to workers and creditors.
✓ Claims checked against the source. checked 3 d ago
