The Australian Taxation Office (ATO) will no longer send an SMS message to taxpayers to inform them their tax return has been processed, as the rising tide of fraudulent messages makes it difficult to discern real communications from costly scams.
On Wednesday, the ATO said it will cut the number of direct SMS communications to taxpayers this tax time.
Previously, the ATO issued two SMS messages after users lodged a tax return: one to alert taxpayers their return had been processed, and another to inform them a refund had been paid.
The ATO will drop the first SMS message this time around, only using the format to inform taxpayers when their 2023-2024 refund is completed.
“This decision was made due to the prevalence of unsolicited SMS messages and it becoming increasingly difficult to distinguish a scam message from a legitimate one,” the ATO said.
The ATO floated the idea at a July 2 meeting of the Tax Practitioner Stewardship Group (TPSG), a collaboration between ATO officials, leading accounting industry groups, and individual tax practitioners.
“TPSG members were invited to provide feedback on the approach and noted no concerns,” the ATO said.
“We will monitor and reconsider the new approach in the event of unintended consequences or impacts.”
The decision speaks to the rising prevalence of imitation scams, some of which target individuals at their most vulnerable points — including when they are waiting for a tax refund in a tough economic environment.
The ATO received 2,464 reports of scams impersonating the tax office in June, a 48% increase from the month before.
While the majority of those came via email, SMS is the second-most common method scammers use to reach their targets, with 245 scam SMS messages reported to the ATO last month.
Fortunately, the ATO received no reports of scam targets actually paying up in the June data.
Nevertheless, impersonation scams are a material threat.
Australia’s reported scam losses topped $2.7 billion in 2023, drawn from investment scams, remote access attacks, romance scams, phishing, and payment redirection scams — a particular threat to small businesses.
To shield taxpayers against dodgy messages, the tax office in February shared information on how and when it will make contact.
The ATO will never send taxpayers a text message asking them to directly provide their personal details, the tax office said, nor will it ask recipients to click on a link to provide personal information.
“If you’ve received a scam email or SMS, do not click on any links, open any attachments or download any files,” the ATO website states.
“We will never send an unsolicited SMS that contains a hyperlink.”
Taxpayers can call the ATO directly on 1800 008 540 to verify if the text, email, or phone call they received was legitimate, or by forwarding a copy of the questionable material to ReportScams@ato.gov.au.
Those who do make a payment to a suspected scam should also call the number above, file a report with local police, and contact their bank, and the bank the payment was directed towards.
Taxpayers can access ATO online services through the myGov URL my.gov.au, and through the official myGov smartphone app.
While ATO impersonation scams are clearly a threat, the tax office has alerted taxpayers they may receive communications from its chosen debt collection service Recoveriescorp.
In an attempt to whittle down outstanding debts, the ATO in January empowered Recoveriescorp to launch recovery activities when a taxpayer fails to engage with the tax office.
Similar rules apply to messages purporting to come from Recoveriescorp.
“If you’ve been referred to them, Recoveriescorp may contact you by phone, email, SMS or post,” the ATO website states.
“If you’re not sure whether it’s really them, do not reply. Phone Recoveriescorp directly on 1300 323 495 to check.”
Taxpayers can access further advice on how to spot, avoid, and report scams on the ATO website.
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Senior Business Journalist
Focused on the small business sector, David’s work covers the political, regulatory, and economic issues facing Australian entrepreneurs. Prior to joining SmartCompany, he was a reporter for Business Insider Australia. You can follow him on LinkedIn.
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