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Tax Scams To Watch Out For This EOFY

5 Tax Scam To Watch Out For This EOFY

As End of Financial Year approaches, most Australians are thinking about getting their tax returns lodged, deductions reported and refunds in bank accounts.

Unfortunately, scammers are thinking about tax time too.

Every year criminals ramp up their efforts to impersonate government agencies like the ATO, stealing personal information and scamming taxpayers out of millions of dollars. And with modern technology, these scams have become more advanced than ever.

From professional-looking emails to text messages, phone calls and social media accounts, scammers are even going as far as creating fake websites designed to look almost identical to legitimate government services.

The result? Thousands of Australians caught up in tax scams each year.

To help you stay protected this EOFY, here are five of the most common tax scams currently circulating and the warning signs to watch out for!:

#1 The “Urgent Tax Debt” Scam

One of the oldest tax scams in the book, yet still the most effective for scammers.

The Scam:

You receive a phone call, text message or email claiming to be from the Australian Taxation Office (ATO). The message states that you owe money and must make an immediate payment to avoid serious consequences, fines or jail time.

The scammer may claim that:

  • Your Tax File Number (TFN) has been suspended
  • There is a warrant issued for your arrest
  • Legal action is being taken against you
  • You have undeclared cryptocurrency income
  • Your tax return is being audited

These fear mongering tactics are designed to create panic and pressure you into making a payment before you have time to think.

Warning Signs:

  • Threats of arrest, legal action or imprisonment: The ATO will never use threats or intimidation to collect tax debts and will always follow a formal and legal process.
  • Demands for immediate or on the spot payment: The ATO will always provide taxpayers with time to review their position, seek advice and arrange payment where required.
  • Requests for payment via cryptocurrency, gift cards or unusual bank accounts: The ATO only accepts payments through authorised and traceable payment methods, never gift cards, cryptocurrency or personal bank accounts.
  • Pressure to stay on the phone while making payment: Genuine ATO representatives will never prevent you from ending a call to verify information, contact your accountant or get independent advice before making a payment.

If you’ve been contacted by someone claiming to be from the ATO or any other government agency and you’re unsure if it is legitimate, hang up and contact the ATO directly using publicly listed contact details to confirm.

You can also contact the ATO’s Debt and Lodgement line directly on 13 11 42.

#2 Fake myGov or ATO Messages

Cybercriminals know that Australians frequently receive digital notifications from government agencies for their BAS, Notice of Assessments (NOAs), payment plan reminders, and more.

As a result, many of their elaborate scams are designed to mimic legitimate emails from the ATO or myGov.

The Scam:

You receive a text or email claiming there is an important document waiting, a form requiring your signature or an urgent update regarding your tax return.

The correspondence then directs you to a fake website designed to capture your usernames and passwords, personal identity information such as drivers licences or date of birth, contact information and/or bank details. Once obtained, scammers use these details to commit identity theft or financial fraud.

Warning Signs:

  • Unexpected emails requesting you to login to your myGov account or other government websites: Government agencies will almost always direct users to access their accounts independently, rather than through unsolicited emails containing login requests, especially if you have not recently requested login access.

  • Links directing you to a website that looks like myGov but does not have the official myGov website URL: (https://my.gov.au/)

  • Requests for personal information via email, text or social media: The ATO and myGov will not ask you to provide sensitive information such as passwords, banking details or identity documents through these channels.

  • Sender email addresses that don’t match official government domains: Always check that any email correspondence you receive is coming from a legitimate government domain by clicking on the sender’s address. A lot of the time, legitimate correspondence will come from a “no reply” email address, and will ask you to access your account independently through a browser.

Neither the ATO nor myGov will send unsolicited emails asking you to click a link to log in to your account. When in doubt, always navigate directly to their official website yourself using a secure browser, rather than clicking any links provided in a text or email.

#3 The “You’ve Got a Tax Refund” Scam

Who doesn’t love a tax refund? Scammers know this, and will often use the promise of money to lure victims into handing over sensitive personal information.

The Scam:

You receive an email or text message claiming you’re entitled to a refund. To receive the refund, you’re asked to click a link, scan a QR code or provide your banking or credit card details. The website you’re directed to often looks remarkably legitimate.

Warning Signs:

  • Unexpected refund notifications: The ATO aren’t particularly well known for their random acts of generosity. If you’re not expecting to receive a refund from a recent tax return, always question any correspondence indicating as much.

  • Requests for banking or card details: The ATO or other government services will never ask you to provide bank account or card details via email or text message.

  • QR codes asking you to access government services: It is always safest to access myGov or other government websites and portals independently to avoid malicious links that may be embedded in QR codes or hyperlinks.

  • Messages creating urgency around claiming your refund: The ATO will never give you a “cut off” date for claiming or receiving a tax refund.

The ATO does not send unsolicited links or QR codes asking you to log in and claim a refund. Any communication regarding tax refunds should be verified through your official myGov account or by your accountant.

#4 Social Media Tax “Hacks” and Financial Shortcuts

Not every scam comes from someone pretending to be the government.

The Scam:

Australians are being increasingly exposed to questionable tax advice through social media platforms, online forums and AI-generated content.

You may come across posts claiming to expose “secret” deductions the ATO doesn’t want you to know about, “guaranteed” ways to maximise your refund, tax “loopholes” or investment opportunities with extraordinary returns.

While these might sound appealing, following inaccurate or misleading advice can result in incorrect financial reporting, penalties or even potential audit.

Warning Signs:

Always be wary of any kid of financial “hack” or advice that:

  • Sound too good to be true
  • Promises unusually large refunds
  • Lacks credible sources
  • Pressures you to act quickly

Before you act on any “money saving” tax strategy, it’s important that you seek advice from a qualified accountant or adviser who can properly assess and understand your financial position and individual circumstances.

#5 Paying for Services That Are Actually Free

A growing scam involves websites and social media advertisements offering government-related services for a fee.

The Scam:

One common example is charging people to apply for a Tax File Number (TFN) or Australian Business Number (ABN). Scammers create illegitimate websites and “services” to collect money, personal information or both. This may come in the form of a text, email or even snail mail.

Many government services are actually available free of charge through official government websites.

Warning Signs:

  • Requests for payment to access basic government services: Many government services, including applying for a TFN or ABN, are available free of charge on their respective official websites.

  • Websites that do not end in “.gov.au”: Most if not all Australian government departments and agencies use official “.gov.au” domains when sending any email correspondence. Alternative web addresses are a huge sign that the website may not be legitimate.

Applying for a TFN or ABN is free. When registering for either, always verify you’re dealing with a legitimate government website before providing any personal information online.

What Do If I Think I’m Being Scammed?

If you receive a phone call, email, text message or social media message claiming to be from the ATO or another government agency, there’s one simple rule to follow:

“DO NOT CLICK!“

Don’t click any links, don’t open any attachments, don’t provide any personal information, don’t make any payments until you’ve verified that you’re communicating with an official government organisation or representative.

Legitimate government staff and representatives will never pressure you to provide information, stay on the line, make a payment on the spot, or have any issue with you requesting to exit a chat or hang up a call to verify that they are who they say they are. If something feels rushed, threatening or too good to be true, take a step back and verify the information before taking action.

If you believe you may have already provided information to a scammer, act quickly. Contact your bank and seek assistance as soon as possible. You can report ATO scams directly to the ATO using their Scam Report Form, or for general scams, contact ScamWatch. ScamWatch provides up to date information to help you spot and watch out for current scams.

If you’re unsure about a recent communication from the ATO or myGov contact the team at BISCosgrove. We’re here to help you navigate your tax and accounting with confidence. No scams, just peace of mind and personalised, practical advice.

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The material and contents provided in this publication are general and informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.