Mildura detectives arrest 10 people as part of ongoing investigation into GST fraud

Police have warned recent arrests for GST fraud are just the beginning and those in the wrong should be “sitting at home very nervous”.

Detectives have arrested 10 people from Mildura as part of a massive fraud investigation but have warned it is “only the beginning” and that more people are in their sights.

The arrests are the result of Mildura Crime Investigation Unit detectives uncovering instances of GST fraud in the northern Victorian town in April, with an estimated total of about $5m.

The information was investigated under the Australian Tax Office’s (ATO) Operation Protego — an investigation into widespread GST fraud.

Police allege those arrested had engaged in fraudulent activities such as creating fake businesses and lodging fraudulent ABNs before submitting fictitious business activity statements to obtain GST refunds.

Among those arrested were a 20-year-year old female from Mildura who has been charged with attempting to obtain a financial advantage by deception.

She is alleged to have defrauded the ATO of almost $200,000 and was released pending summons.

A 25-year-old Mildura man was also arrested for allegedly defrauding the ATO of more than $76,000.

He has also been charged with attempting to obtain a financial advantage by deception and was released pending summons.

Ten people from Mildura have been arrested as part of the Australian Taxation Office’s investigation into widespread GST fraud. Picture: ATO

Others arrested and released pending summons include:

• A 21-year-old male
• A 30-year-old female
• A 53-year-old female
• A 42-year-old male
• A 35-year-old female
• A 38-year-old male
• A 21-year-old male
• A 24-year-old female

All are from Mildura.

But police have warned they are aware of “further connected incidents of fraud” and that they are continuing to investigate.

“In Mildura, we have already arrested ten people over the past week and there are more to come”, Detective Acting Sergeant Vanessa Power, from Mildura Crime Investigation Unit, said.

“If you have been involved in this, you should be sitting at home very nervous. Make no mistake, we will be knocking on your door in the near future.

“Stealing from the Commonwealth is not a victimless crime, you are stealing from people in need of Government support and people using public services, such as education and health.”

The ATO said it was continuing to take action against perpetrators, “who will need to repay fraudulent amounts obtained in full, and who may face severe potential consequences, including up to 10 years’ jail”.

ATO Deputy Commissioner John Ford said Operation Protego was a “high priority” for the tax office.

The operation was initiated in April 2022 in response to “brazen and opportunistic GST refund fraud”.

As a result ABNs have not been granted to “high-risk applicants” and more than $2bn in high-risk GST refunds have been stopped prior to issue.

“We are working closely with law enforcement agencies, government partners and financial institutions to take criminal action against those who have participated in the fraud,” Mr Ford said.

“We have been warning the community about the consequences of becoming involved in GST fraud for some time. These arrests demonstrate the severity of consequences and our ongoing commitment to hold offenders to account.”

If you know or think someone has been involved in tax crime or fraud, including GST refund fraud, you can report it confidentially online at ato.gov.au/tipoff or phone [phone].