Tradies using Bunnings in ABN tax scam

THOUSANDS of tradies are fraudulently using Bunnings to pull off a tax scam, potentially costing the government hundreds of millions of dollars.

THOUSANDS of tradies are fraudulently using Bunnings to allegedly pull off a tax scam, potentially costing the government hundreds of millions of dollars.

The Australian reports Michael ­Andrew, Treasury’s black economy taskforce chairman, as saying that the ABN system was “not working”.

Mr Andrew said abuse of Bunnings’ ABN was “rife” and had resulted in Bunnings being one of the most quoted ABNs in the country.

The scam could be costing hundreds of millions of dollars. Picture: Karin Calvert-Borshoff

He said the scam happens when individuals or businesses employing the services of a tradesman or other service providers requested an invoice.

The invoice is provided but with the bogus ID, allowing the providers to allegedly operate in the black economy.

“People ask for an invoice or valid receipt and they get the name of the company, but they then get an ABN of someone else such as Bunnings: the result of which (is) you can’t trace then where the money really went,” Mr Andrew said.

“We found out that more than 40 per cent of ABNs quoted in the Northern Territory were Bunnings,” Mr Andrew said.

“Of course, every tradesman goes to Bunnings. They get an invoice — the ABN’s up top.”

There is no suggestion Bunnings has done anything wrong.

The hardward chain has declined to comment on the report.

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