Rorting of Tourist Refund Scheme increases sixfold since pandemic

The number of Australians busted trying to rort a travel tax return scheme has increased six-fold since the pandemic.

Generic passport, immigration, border force Picture: Getty Images

The number of Australians caught trying to rort a travel tax return scheme has increased six-fold since the pandemic, with improved systems and interdepartmental information sharing attributed to increased real-time detection.

More Australians than ever before were caught last year breaching the Tourist Refund Scheme as they illegally returned claimed goods back into the country.

The largest TRS breach involved an Australian citizen claiming a $38,208 refund on $420,290 of gold coins.

The individual was caught and subsequently fined $19,104.

Established in 2000, the TRS offers anyone leaving Australia with full refunds on the 10 per cent GST or 29 per cent wine equalisation tax (WET) charged for products they take with them.

The most popular items among TRS claims include electronic devices, often Apple devices, and luxury fashion pieces.

From 2020-23, the number of citizens caught returning with undeclared goods claimed under TRS increased from 57 to 334.

“With traveller volumes increasing post the Covid-19 pandemic, there has also been an increase in the number of TRS claims,” an Australian Border Force spokesman said.

“Consequently, there has been a corresponding increase in breaches detected.”

The number of people caught is 1.5 times higher than pre-pandemic levels, despite there being a smaller total value of claims, showcasing that newly implemented ­enforcement measures likely have improved detection ­sensitivity.

“If the claimant fails to declare items they bring back onshore, they may also be subject to an administrative penalty.”

Of the almost 800 citizens caught breaching TRS law in the past five years, more than 400 were given a penalty of up to 50 per cent of the benefit value.

Five years ago, a scathing report released by the National Audit Office exposed Australian citizens who had illegally claimed more than $550m in taxpayer funds as a result of inadequate enforcement of the TRS, with noncompliance as high as 82 per cent.

It was also found that as claims almost doubled over 20 years, resourcing for the scheme had slightly reduced. Subsequently, reforms had since taken place and had led to success in enforcement.

While the ABF were unable to confirm what new systems had been implemented due to operational security, an ABF spokesman said that newly implemented controls would “prevent, detect and deter noncompliance with the Tourist Refund Scheme”.

The TRS has been very valuable to Australia’s economy through incentivising domestic spending, with recent reforms showing early ­indications of improved detection and enforcement.

Originally published as Rorting of Tourist Refund Scheme increases sixfold since pandemic