Fending off GST audits

Rudd Mantell Accountants • April 27, 2023

The Government has welcomed the actions of an ATO-led taskforce in relation to what is termed "the biggest GST fraud in Australia's history".

The ATO states that the fraud was first detected in early 2022 and involved offenders inventing fake businesses and ABN applications, then submitting fictitious Business Activity Statements in an attempt to gain a false GST refund. In response, the ATO's Serious Financial Crimes Taskforce set up "Operation Protego" in partnership with the Australian Federal Police. Warrants were executed in three States against 10 individuals suspected of promoting the fraud (which included the use of social media).


Some of the numbers involved are simply staggering in terms of the perpetrators' audacity:


  • The ATO has taken compliance action on more than 53,000 "clients".
  • It has stopped approximately $2.5 billion in fraudulent GST refunds from being paid (as at 31 December 2022).
  • Two individuals have been sentenced to jail following their arrest in 2022.
  • There have been some 87 arrests across the country, "with many more to come".
  • The ATO has commenced writing to more than 20,000 individuals involved in the fraud.


The purpose of our informing clients of this operation goes to GST audits conducted by the ATO and what they will be looking for should you or your business be selected. As a starting point, generally, the ATO will apply at least some level of scrutiny to Activity Statements where there is a refund of $5,000 or more or where the refund is uncharacteristically large for the taxpayer involved.


The key to staving off a GST audit is the obtaining and retaining of tax invoices. As your tax agent, there is no requirement for us to view each and every tax invoice you hold before we make a claim for GST credits on your behalf on your Activity Statement. However, no claim can be made without you being in possession of a tax invoice.



Tax invoices for purchases of less than $1,000 must include enough information to clearly determine the following seven details:

  1. document is intended to be a tax invoice
  2. seller's identity
  3. seller's Australian business number (ABN)
  4. date the invoice was issued
  5. brief description of the items sold, including the quantity (if applicable) and the price
  6. GST amount (if any) payable – this can be shown separately or, if the GST amount is exactly one-eleventh of the total price, as a statement which says 'Total price includes GST'
  7. extent to which each sale on the invoice is a taxable sale.


Tax invoices for sales of $1,000 or more also need to show the buyer's identity or ABN.


The following example shows:


• GST included in each line item

• the sale is clearly identified as being fully taxable by the words 'Total price includes GST'

• the buyer's identity for sales of $1,000 or more.


If you have any questions around tax invoices, or if you are having problems obtaining them, reach out to us.

Concessional Super Contributions vs Mortgage Paydown: What’s the smarter move?

By Rudd Mantell Accountants • June 12, 2025
If you have some extra cash, you might be deciding whether to make a concessional contribution to your super fund or use it to pay down your mortgage, whether on your home or holiday house. Both strategies have advantages, but the right choice depends on your personal situation. Let’s take a closer look at the options.

Writing a will in a tax-effective manner

By Rudd Mantell Accountants • May 30, 2025
When a person writes a will they usually leave their assets to their children – and usually in equal shares. And when they first write their will their children may be young – and they may also be relatively young when they later update it.

Concessional contributions - Can there be too much of a good thing?

By Rudd Mantell Accountants • May 15, 2025
A fantastic way to grow your retirement savings and shrink your tax bill is through concessional contributions (CCs) to super. But more is not always better and like Goldilocks and her porridge, it pays to get things just right.

No CGT exemption for homes held on trust

By Rudd Mantell Accountants • May 15, 2025
It’s pretty well-known that a foreign resident (for tax purposes) cannot get a CGT exemption for a main residence (if they are a foreign resident at the time they entered the contract of sale).

Employees vs. Contractors - What Sets Them Apart

By Rudd Mantell Accountants • May 1, 2025
The Australian Taxation Office (ATO) has recently revised its guidance on differentiating between employees and independent contractors. This change follows several court rulings that clarified the criteria for determining whether a worker is genuinely an employee or an independent contractor.

Three great reasons to start a Transition to Retirement Pension

By Rudd Mantell Accountants • May 1, 2025
Thinking about easing into retirement but still need a steady income? Want to trim your tax bill while growing your super? Or maybe you'd love to knock down some debt before you stop working? If you are 60 or over, you can do just that.

Selling property? Buyers must withhold and pay the ATO!

By Rudd Mantell Accountants • April 27, 2025
If you're selling property in Australia and you're a foreign resident, there are important tax rules you need to know. Recent changes mean that buyers must withhold 15% of the property’s market value and pay it to the ATO, unless the seller provides a residency clearance certificate.

We may need to talk about your family trust

By Rudd Mantell Accountants • April 11, 2025
You may have read about a recent court decision affecting some family trusts. In a case called Bendel, published on 19 February 2025, the Full Federal Court unanimously held that the private company beneficiary of a discretionary trust has not made a “loan” or “financial accommodation” to the trust merely by not calling for the payment of its trust distribution.

Managing inherited investments: what you need to know

By Rudd Mantell Accountants • April 11, 2025
When it comes to inheritances, one key fact to understand is that Australia has no death duties – meaning there are no taxes on a deceased person’s estate based on the value of their assets at the time of death.

Capital gains tax: How good records can save you money

By Rudd Mantell Accountants • April 11, 2025
Congratulations! Your investment has done well, and you’re cashing in. You’re happy, and so too is the ATO. That substantial capital gain has brought wealth and a hefty tax bill.
More Posts