The Australian Taxation Office (ATO) has rolled out critical updates for taxpayers ahead of the 2025 tax return season. Australians who file their tax returns now have the benefit of pre-filled personal data, making it easier to complete the process without errors. However, the ATO has issued a cautionary note to businesses about GST fraud, which continues to rise within certain sectors. This article explores the key updates, why lodging tax returns sooner rather than later is ideal, and the ATO’s continued fight against fraudulent activities in the business community.
With tax season officially open from July 1, 2025, taxpayers are urged to wait until the ATO has pre-filled their data before submitting their returns. This initiative is part of an ongoing effort to streamline the process and reduce the possibility of errors that could lead to delays in processing refunds. However, this year, the ATO is also addressing the rise in fraudulent GST claims, particularly in the property and construction industries, highlighting a dual focus on facilitating genuine claims while cracking down on fraudulent activity.
Pre-Filled Data: Streamlining the Tax Return Process
For the first time, millions of Australians with “simple affairs” will find their personal tax information pre-filled for them by the ATO. This includes common data like income details, bank interest, and deductions. The move is designed to help reduce errors and minimize the need for amendments, which can sometimes delay the progress of a tax refund.
Assistant Commissioner Rob Thomson emphasized that the new feature makes it easier for taxpayers to lodge their returns, whether they are filing through a registered tax agent or using myTax. However, while the pre-filled information will speed up the process, the ATO still encourages taxpayers to carefully review the data to ensure it’s accurate, especially in cases where income from side-hustles, gig economy work, or app-based services may be involved. “It’s essential that all income sources are included,” Thomson advised.
Safeguards Against Fraud: Protecting Taxpayers’ Information
As tax fraud continues to evolve, the ATO has implemented enhanced security features to protect taxpayers from fraudsters. This includes real-time notifications through the ATO app, alerting users to any changes made to their accounts. Rob Thomson reminded taxpayers that they can lock their accounts instantly through the app if they suspect unauthorized access or fraud. These improvements aim to safeguard personal data and ensure that users retain control over their tax affairs.
“Fraudsters are getting smarter, but so are the protective features in the app,” said Thomson. These updates are particularly important as cyberattacks and fraudulent claims on refunds continue to be a growing concern, with the ATO increasingly vigilant about unauthorized activities.
A Fresh Warning on GST Fraud for Businesses
In addition to assisting individual taxpayers, the ATO has directed its attention to businesses involved in GST fraud. Assistant Commissioner Adam O’Grady issued a fresh warning regarding the rising trend of false invoicing within industries such as property and construction. This practice involves creating fake invoices to claim higher GST refunds than what businesses are entitled to.
Although the number of businesses engaging in such fraudulent activities is relatively small, some are attempting to claim substantial sums. “Some businesses are attempting to claim tens of millions of dollars in GST refunds they’re not entitled to,” said O’Grady. The ATO has made it clear that these actions will not be tolerated, and those involved face severe penalties, including interest charges, fines, and even prosecution.
Consequences for Fraudulent GST Claims
The impact of GST fraud extends beyond businesses, undermining the integrity of Australia’s taxation system and putting compliant businesses at a disadvantage. The Serious Financial Crimes Taskforce has ramped up efforts to detect and prosecute GST fraud, particularly as the practice spreads into other sectors, such as privately owned and wealthy groups.
The ATO is actively targeting fraudulent activity to protect the GST system, a tax that funds essential services across Australia. “GST revenue is vital to Australia’s economy,” O’Grady stated, urging both businesses and the public to help the ATO eliminate fraud. The warning also serves as a reminder that businesses must maintain integrity when claiming refunds and comply with the law, as the penalties for non-compliance can be significant.
