Finance experts warn about con artists amid tax return season

It's that time of the year again when Australians file for their tax returns.

As the deadline looms closer, taxpayers have been urged to stay vigilant against fraudsters that could threaten their financial security.


The Australian Taxation Office (ATO) announced that all taxpayers must either lodge their tax returns or appoint an accountant by 31 October to avoid hefty fines.

The ATO's stern reminder comes with a warning: miss the deadline, and taxpayers could face a $330 fine.

The fines could also escalate to $1,650 for repeatedly failing compliance.

However, scammers have also been on the prowl, ready to exploit the urgency and pressure that comes with these deadlines.


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Filing tax returns could be a hectic season, which scammers can take advantage of. Image Credit: Pexels/Nataliya Vaitkevich


CPA Australia Tax Lead Jenny Wong cautioned that the tax season rush could lead to costly mistakes.

'Scammers will target people with last-minute calls to action or promises of substantial refunds,' Ms Wong explained.

This is a critical time to be alert and to question the legitimacy of any unexpected communication regarding tax matters.

CPA Australia advised against hasty submissions, which could lead to errors and less favourable outcomes.

'Leaving it until the last minute comes with the risk that you cut corners, get things wrong and don't submit your return accurately,' Ms Wong emphasised.


Ms Wong also shared some advice to everyone using myGov for submissions.

'If submitting yourself through myGov, make sure you check the pre-filled information is correct, and don't just copy and paste the same deductions as last year.'

For those feeling overwhelmed by the tax return process, a licensed accountant could help.

As long as taxpayers have an accountant by 31 October, they could avoid penalties.

Ms Wong also warned that scam text messages, emails, social media posts, and phone calls have been rampant.

With over 22,000 scam reports received by the ATO before the start of the new financial year, scammers have been more convincing in their attempts to impersonate the government body.

'Be very wary of anyone offering unsolicited, last-minute help to file your tax returns, especially if the offer or promise of returns sounds too good to be true,' Ms Wong shared.

'It's also a good idea to remind your friends and family to be extra cautious as scammers step up their activity in the lead-up to the deadline.'


Scams can take various forms, and CPA Australia highlighted the three main types to be aware of:

Tax-related identity theft: Fraudsters could access accounts, change bank details, and lodge refund claims to collect money from the ATO.

Protecting personal information is crucial to prevent personal information from falling into the wrong hands.

ATO impersonation scams: Scammers mimic official ATO communications to steal personal data.

Be sceptical of messages that appear to be from the ATO, and check for slight discrepancies such as spelling.

The ATO will never ask for personal information or send links via email, text, or social media.

Dodgy tax preparers: Scammers could offer to complete tax returns and promise large refunds and a speedy process, only to flee with your personal and financial details.

Always verify if tax preparers are registered on the Tax Practitioners Board.

Never share your myGov details, and always enable two-factor authentication for added security.


It's essential to remain cautious amid the looming tax season.

By being aware of the potential scams and taking the necessary precautions, you can rest easy knowing that your tax return has been lodged accurately and on time.

If you have encountered a tax-related scam, report it immediately to the ATO and Scamwatch.
Key Takeaways

  • The Australian Taxation Office (ATO) already set the tax return deadline by 31 October, with penalties for failing to meet this deadline.
  • CPA Australia advised against rushing tax return submissions as it could lead to errors or scams.
  • Taxpayers should be wary of tax scams, especially around the deadline, including ATO impersonation and unsolicited help in filing tax returns.
  • To avoid becoming a victim of tax scams, keep personal information private, verify the legitimacy of communications claiming to be from the ATO, and only work with registered tax preparers.
Have you or someone you know ever encountered a tax scam? Do you have advice for fellow Aussies on how to stay safe amid the tax season? Share your experiences and tips with us in the comments section.
 
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