The Australian Taxation Office (ATO) has launched a crackdown on fraudulent GST claims in the building and construction industry. From 1 July 2025, the ATO can now withhold suspicious GST refunds for up to 30 days while investigating. Those caught face interest charges, penalties, potential prosecution, and promoter penalties for advisers involved.

The ATO has identified schemes involving:

• False invoicing between related entities;
• Misaligned GST accounting methods;
• Duplicate GST credit claims;
• Claims for non-existent construction or development costs; and
• Use of dummy directors to disguise ownership.

Businesses are urged to ensure their GST claims are accurate and supported by legitimate documentation. If you have concerns about past claims, making a voluntary disclosure may reduce penalties.

Suspicious activity can be reported anonymously to the ATO via its website or by calling 1800 060 062.

Master Builders Australia reminds members that strong compliance protects both your business and our industry’s reputation. Seek advice from a qualified tax professional if you are unsure about your obligations.