How safe is your business from scams

Updated 27 Aug 2025

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From fake invoices and scam calls to fraudulent social media ads and texts, scammers are targeting Victorian businesses in ever-evolving ways.

Victorians have lost $4.1 million to false billing scams alone in 2025, proving that dodging fraud can be a full-time job.

Top 3 scams costing Victorian businesses this year

Scammers are out to steal your money and they continue to come up with novel ways of doing so. The National Anti-Scam Centre has identified the 3 scams hitting Victorian businesses hardest this year. You might be surprised by what they are.

1. False billing scams

False billing scams have cost Victorian businesses $3.9 million in the first 6 months of 2025. These scams typically involve:

• impersonation scams – scammers mimic businesses by using similar names, emails, domains and logos to send fake invoices that appear legitimate
• payment redirection scams – a business system is compromised by the scammer, allowing the scammer to change banking details on legitimate payment requests. Because the emails are sent out from the real business email account, it is extremely difficult for customers to spot this scam.

Industries that typically handle large value payments (real estate, legal and conveyancing, building and construction, and automotive) are at greater risk of these types of scams.

3 tips on how to protect your business and customers from false billing scams

• Include scam awareness messaging to your customers.
• Provide your customers with secure, authorised and encrypted payment platforms where available rather than email requests for payment.
• Train your staff to always check that goods have been ordered and authorised before paying an invoice and independently contact the organisation to confirm if there has been a change in payment details.

2. Business impersonation

More Victorian businesses are reporting that they are being impersonated. Financial losses related to these impersonations are on the rise.

Scammers impersonate a business and its brand by:

• creating clone websites and fake social media profiles
• spoofing* phone numbers, SMS user IDs and email addresses
  • *spoofing is when scammers use technology to disguise their phone number, SMS user ID, and email address to make it look like they are contacting you from a trusted organisation
• referencing a legitimate ABN or industry licence.

Businesses impersonated by scammers in this way may suffer brand damage and reputational harm through loss of consumer trust and confidence.

3 tips on how to protect your business from identity theft and impersonation scams

• Regularly search online and on social media for your brand name to spot impersonation quickly.
• Report fake accounts or websites to the platform or website host to have them removed.
• If you find a scam, help others by going to Report a scam.

3. Shopping scams

When shopping online for your business (or yourself), if it looks too good to be true it probably is.

4 tips on how to protect your business from shopping scams

• Wherever possible, inspect goods before making any payment.
• Read independent reviews when using a new supplier.
• Use your browser to search for websites rather than accessing sites via links in text, email or social media.
• Pay for items using secure payment methods like PayPal and credit cards.

How to protect your business from scams

Keep your business and customers safe with three simple steps: Stop. Check. Protect.

Stop. Always take a moment before giving money or personal information to anyone.

Scammers will create a sense of urgency to pressure you into acting quickly. Don’t rush to make decisions about money or sharing personal or business details.

What to do:

• Say no, hang up, or delete suspicious messages.
• Take time to think before responding to unexpected requests.
• Don’t let anyone pressure you into immediate action.
• Trust your instincts if something feels wrong.

Check. Make sure the person or organisation you’re dealing with is real.

Scammers pretend to be from organisations you know and trust. Always verify who you’re really dealing with before taking any action.

What to do:

• Contact the organisation directly using phone numbers or email addresses you find on their official website or app.
• Research investment opportunities or offers through official sources Iike ASIC.
• Get a second opinion from family, friends, or professionals.

Protect. Act quickly if something feels wrong.

The sooner you act, the better you can protect yourself and your customers from scammers.

What to do:

• Contact your bank immediately if you think you’ve lost money or shared financial details.
• Contact IDCARE if you’ve shared personal information – they can help you create a plan to limit damage.
• Help others by going to Report a scam.
• Report to police at Cyber.gov.au.
• Change passwords and security details if you think they’ve been compromised.
• Monitor your bank statements and credit reports for unusual activity.
• Report the scam to the impersonated organisation and platform where the scam is happening.
• Being scammed can feel overwhelming. Support is available at Lifeline on 13 11 14 or Beyond Blue on 1300 22 4636.

Understand cybercrime, how to protect your business and report an attack or cybercrime with Manage cybersecurity in your business.

Acctweb

Non deductibility of ATO interest charges for businesses

Businesses can no longer claim income tax deductions for ATO general interest charge (GIC) and shortfall interest charge (SIC) charged on unpaid/underpaid tax liabilities. This change applies to amounts incurred in income years starting on or after 1 July 2025.

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Previously, businesses could deduct ATO-imposed interest charges on overdue tax debts, reducing the net cost of these charges. From 1 July 2025, this deduction is no longer available.

This legislative change is significant for businesses that manage cash flow by deferring tax payments, as the cost of carrying tax debt will effectively increase. Without the tax deduction, the real cost of ATO interest charges rises, making it more expensive to delay tax payments. Currently, the GIC rate is 11.17%.

The removal of tax deductibility for ATO interest charges underscores the importance of timely tax compliance.

Acctweb

HECS/HELP debt reduction Bill introduced

The Labor government have recently introduced legislation aimed to enact its election promise to reduce student debt by 20%.

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The Bill proposes to:

• increase the minimum repayment threshold from $54,435 in 2024–2025 to $67,000 in 2025–2026

• provide a one-off 20% reduction to Higher Education Loan Program (HELP) debts and certain other student loans that are incurred on or before 1 June 2025;

• introduce a marginal compulsory repayment system based on income above the new $67,000 threshold rather than a percentage of the repayment income.

• Introduce cap on level of indexation to lower amount of either the consumer price index (CPI) or the wage price index (WPI).

Acctweb

WHS and OHS Regulatory Update: August 2025

Officers have an ongoing duty to ensure their organisations remain compliant and stay informed about work health and safety matters. This update covers recent developments to help officers meet their obligations and stay current with WHS changes. 

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In Short

• New NSW workplace safety reforms introduce mandatory Codes of Practice, greater enforcement powers, and new reporting requirements for improvement notices.

• As of 1 August 2025, Queensland inspectors will conduct audits on buildings constructed before 1990 to ensure proper asbestos risk management.

• A serious workplace fall resulted in fines totalling $795,000, highlighting the need for effective training, incident reporting, and adherence to safety codes.

Tips for Businesses
Review and update your safety systems to align with the new NSW Codes of Practice and reporting duties. If operating in older Queensland buildings, complete asbestos risk assessments and control measures. Reinforce training on equipment use and incident reporting to prevent serious injuries and avoid large fines.

Legislative Update

The NSW Government has recently passed reforms that will see significant changes to the Industrial Relations Act 1996 (NSW) and the Work Health and Safety Act 2011 (NSW). 

The key changes seek to establish new processes for addressing bullying and harassment in the workplace while strengthening existing WHS provisions and enforcement practices. 

Some of the key amendments include: 

1. implementing mandatory Codes of Practice employers will be required to adhere to;
2. new enforcement powers for SafeWork NSW to enforce compliance and improve information sharing across different jurisdictions; and
3. reporting obligations for employers to report improvement notices issued by health and safety representatives to SafeWork NSW. 

We will continue to monitor and report on this matter (including when the changes will come into effect). 

Asbestos Management Compliance Audits in Queensland

From 1 August 2025, Workplace Health and Safety Queensland inspectors have commenced auditing businesses operating from buildings constructed before 1990 and those likely to contain asbestos. 

Focus on Physical Risks to Safety 

A series of serious workplace incidents involving machinery and equipment highlights critical gaps in safety protocols across many organisations. These cases demonstrate that regardless of the type of business, employers can benefit from implementing robust safety mechanisms and reviewing inadequate work processes.

The incidents revealed recurring issues such as: 

1. insufficient worker training for equipment operation and maintenance tasks;
2. poor incident reporting practices, with some businesses failing to report serious injuries; and 
3. repeat offences indicating systemic safety culture problems.

The consequences of non-compliance have led to employers facing substantial fines of up to $90,000. 

These cases serve as important reminders that proactive safety measures, proper training, and robust reporting systems are essential across all workplaces to prevent serious injuries.

Cases and Incidents

A worker suffered serious injuries after falling 2.2 metres. The incident resulted in both the business and the company director receiving significant fines.

1. What Happened?

The worker suffered multiple injuries and has ongoing health issues as a result of the fall. The employer had implemented a safety management plan that had assessed the risk of falls from such a height as a moderate risk. While the employer had identified the risk within their safety management plan, they did not put appropriate steps in place to effectively mitigate the risk. 

2. What Was the Outcome?

The employer faced a fine of $750,000. Additionally, the company director was personally fined $45,000. 

3. Key Takeaways

While safety management plans can be effective ways to identify and record risks to safety within the workplace, consideration should be given to effective management of the organisation’s risk exposure.

In this case, the employer had not taken into account the Code of Practice for the Prevention of Falls in Workplaces. WorkSafe Commissioner Sally North noted that the Code of Practice would have provided practical guidance to effectively manage fall risks and should be followed in all workplaces where risks of falls exist.

Inherited assets: what you need to know about pre-CGT v post-CGT investments

Inheriting assets, whether it’s a family home, shares, or an investment property, can offer significant financial benefits, but it often comes with unexpected challenges. 

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The tax implications of inheriting an asset depend on whether it was acquired by the deceased before or after the introduction of CGT on September 20, 1985. 

For post-CGT assets, the beneficiary inherits the deceased’s cost base, which is essentially the original purchase price plus any associated costs. This means that any capital gain or loss is calculated based on this inherited cost base when the asset is eventually sold.

For pre-CGT assets, the cost base is reset to the market value at the date of the deceased’s death. This can significantly impact the amount of CGT payable upon the sale of the asset, as the capital gain or loss is calculated from this new cost base.

Does the type of asset matter?

The type of asset inherited can influence the tax treatment. For example, inheriting property versus shares can have different implications. 

Housing, especially the family home, can be eligible for a full CGT exemption if sold within two years of the deceased’s death – regardless of whether it was acquired before or after the introduction of CGT. However, the exemption may be lost or reduced if you sell it after the two-year window or rent it out. If the deceased acquired a property pre-CGT, the same conditions apply for a full CGT exemption, however the property could be either a main residence, or a rental property. Should the CGT exemption conditions not be met, the cost base of a main residence becomes the value at date of death, and the cost base of a rental property will be determined if it was purchased pre-CGT or post-CGT. 

For shares, if the deceased acquired the shares pre-CGT, the cost base is reset to the market value at the date of death, and any capital gain or loss is calculated from that point forward. For post-CGT shares, you inherit the deceased’s original cost base, and any CGT is calculated from their original acquisition date. Accurate record-keeping, including acquisition dates, cost base details, and any dividend reinvestment or capital returns, is essential to determine your CGT liability and avoid costly mistakes.

What records and valuations are required?

For pre-CGT assets, obtaining a reliable valuation at the date of death is essential, as this forms the new cost base. Without it, the Australian Taxation Office (ATO) may apply its own assessment, which could lead to higher tax. For post-CGT assets, you’ll need to obtain records of the original purchase price, acquisition costs, and any improvements made during the deceased’s ownership.

Common scenarios and CGT impact

Several scenarios can affect the CGT implications of inherited assets:

• Joint inheritances: When assets are inherited jointly, each beneficiary is responsible for their share of the CGT. This can complicate tax calculations and require careful coordination.

• Using an inherited asset as an investment: Converting an inherited asset into an investment property can remove certain CGT exemptions, such as the main residence exemption, leading to higher tax liabilities.

Common misconceptions or mistakes

• Assuming inherited assets are exempt from CGT: One of the most common misconceptions is that inheritance automatically means no capital gains tax. While certain exemptions, such as the main residence exemption may apply, they are not universal and depend on how and when the asset is used or sold.

• Not obtaining a valuation at the date of death: Failing to get an independent valuation at the time of inheritance can lead to inaccurate cost base calculations, potential disputes with the ATO, and unexpectedly high tax liabilities down the track.

• Believing CGT can be avoided through transfers: Transferring an inherited asset to another individual or into a trust does not eliminate CGT obligations and may, in fact, trigger tax consequences. It’s essential to understand the implications of any ownership changes before proceeding.

The value of professional advice

Navigating the complexities of CGT on inherited assets can be challenging. Professional advice from a tax specialist can help beneficiaries understand their obligations, optimise their tax position, and avoid costly errors. A tax professional can provide tailored advice based on the specific circumstances of the inheritance and ensure compliance with tax laws.

Effectively managing inherited assets starts with understanding the differences between pre- and post-CGT assets, keeping accurate records, and seeking professional advice. With the right information and support, beneficiaries can make confident financial decisions, minimise tax liabilities, and avoid common mistakes that may arise during the inheritance process.

Chris Holloway, Equity Trustees
12 August 2025 
accountantsdaily.com.au

Employee or Contractor ?

Before expanding your team, ensure your business can support the new role financially and operationally. Focus on hiring individuals who are adaptable and share your company’s values to foster a cohesive and resilient team. Establish clear onboarding processes and provide ongoing support to integrate new hires effectively.

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In Short

• Assess your business’s readiness before hiring by evaluating workload, efficiency, and budget.
• Prioritise hiring adaptable candidates who align with your company’s culture and growth trajectory.
• Implement effective onboarding and management strategies to set new employees up for success.

Tips for Businesses

Before expanding your team, ensure your business can support the new role financially and operationally. Focus on hiring individuals who are adaptable and share your company’s values to foster a cohesive and resilient team. Establish clear onboarding processes and provide ongoing support to integrate new hires effectively.

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A business’s success depends on having the right people at the right time.

Challenges that are familiar to any new business, include:

• assessing whether you can afford a new hire.
• competing for talent with established companies; and
• setting our team members up for success.

53% of business owners expect to hire or fire employees in the next 12 months.

This guide aims to introduce employers to Australia’s employment law landscape and share best practices around recruitment and retention.

Having a process to quickly test for the skills your business needs can help you scale up and reach your next milestone faster. So, whether it is your first hire or your fiftieth, this article seeks to help you understand the moving parts behind building a high-performing team.

Table of Contents

Assessing the Right Time to Hire

Most businesses start with one person wearing many hats—making sales calls, managing new relationships with suppliers, and setting up social media accounts. As the business grows, you will look for new hires to help take it to the next level. But hiring can be both emotionally and financially draining. There is a risk that there will not be enough work for your new starter.

Before advertising the role, you should assess current workloads to help answer the following key questions.

• Is a dedicated person required for the role? Consider whether an existing employee can absorb the work into their role (without working regular overtime).
• Are there any processes you can implement to improve efficiency? You should regularly review the efficiency of internal processes to identify what roles to consolidate or improve using technology (e.g. outsourcing or automating a data entry job).
• What tools will your new hire need to do their job successfully? For example, will you need to purchase a phone, laptop or fuel card, and can your business afford this cost?
• Are there tasks for your new hire to work on immediately? Write a position description that details the new employee’s roles and responsibilities, as well as any key performance indicators (KPIs) they will be held accountable for.
• Have you identified the impact of any monthly or seasonal trends on your hiring? Seasonal trends can impact the hiring needs of your business. Anticipating these factors helps ensure that your business operations are not interrupted. For example, by hiring additional staff for the Christmas period earlier in the year, you can make sure that you dedicate enough time to training.

Does your business have the budget to hire someone new? 

Case Study: Lachlan McKnight

Hiring new staff is expensive. From recruitment costs to the ongoing costs of employment (such as salary and training), you should always carefully assess whether your business has the budget to hire someone new.

Recruitment Costs

Many businesses engage a professional recruiter to source and vet candidates. Recruiters have lists of candidates on hand, so they can often fill a position quickly. 

We’ve found that sourcing candidates ourselves produces better results for our business. This approach gives us full control over the hiring process and ensures that every candidate fits with our culture.

Recruiting in-house is time-consuming and occupies the attention of team leaders and HR professionals, so there’s a risk that their day jobs will suffer. Plus, there are the additional costs of listing open positions on job boards and flying interstate candidates for face-to-face interviews (yes, you should offer to cover candidates’ travel costs if you can!). Before recruiting, make sure you can afford the significant time it takes to do it well.

Ongoing Cost of Employment

The costs of employing a team member are more than the salary you agree to in their contract. You also need to pay ongoing costs (like 12% superannuation, as well as payroll tax) and provide essential equipment (like a desk, computer and software or tools). Ongoing costs vary by industry and state, so make sure you do your research.

Of course, the biggest cost is the new hire’s compensation. You should have in mind a salary range and a sense of how you will pay, for example, will you offer base salary only or will commission be on the table? It is easy to get excited about hiring an excellent candidate – but try not to blow your budget!

Remember that most team members will expect, at least, an annual salary increase and sometimes, every six-months, so keep this in mind when forecasting expenses.

The Cost of ‘NOT’ Hiring

You should weigh the cost of hiring against the return you expect to receive from the new hire. But you also need to factor in the cost of missing out on opportunities that you are unable to pursue without enough staff. For instance, if you have inbound leads who are not receiving the prompt attention of a sales rep, you could be missing out on the revenue from those leads. That’s why we always try to hire a couple of months ahead of the time needed. This is made possible by anticipating future opportunity using revenue forecasts.

Determining Who to Hire First

Who you hire first will depend on the industry you work in, your team’s skills and your business goals.

Who A Small Business Should Look To Hire First

Joan Westenberg (Director of Communications – FlareHR)

Once your business gets off the ground, you can better identify what tasks need an extra pair of hands. First hires are critical to driving growth and shaping your business’ culture because they will likely help you train other team members. So, it is essential to take the time to hire the right people.

As a small business owner, we suggest assessing your strengths and weaknesses and hiring someone who complements them. For example, if you are an expert in sales, you may hire an all-rounder who can assist with other parts of your business, like digital marketing, finance and general administration.

What to Look For in a First Hire

1. Focus on the candidate’s industry expertise and work experience rather than their impressive job titles.
2. Hire for potential and have a progression plan to help your future employee up skill over time and take on more responsibility.
3. Invest in your employee by paying them well and providing professional development opportunities (e.g. external training or mentoring) to enable them to grow with your business.
4. Hire someone with a background different from your own to encourage more creative thinking and problem-solving

An alternative:  In the early days, we outsourced some core functions like payroll, accounting and administration. This gave us more time to focus on what skills our new hires needed to possess to help grow the business.

Types of Employment

It’s important to know who you’re hiring and for what purpose. This will determine your new hire’s employment status and impact the obligations you owe them, as well as their rights at work.

The examples below summarises the different worker classifications, using a clothing store as an example.

Full-time employee 

Example – You hire a store manager who works full time at your clothing store in the CBD. As an employer, you must provide the store manager with the following:
● 38 hours of work per week;
● 20 days of annual leave per year; and
● 10 days of personal carer’s leave per year. The Retail Award will apply and set out further entitlements, including the manager’s minimum entitlement to wages. 

Part-time employee 

Example – you decide to hire a part-time sales assistant to work 25 hours each week (five hours each day) to help the manager during busier periods.

A part-time employee works fewer than 38 hours each week and usually works regular hours. They are entitled to the same benefits as a full-time employee, but these are adjusted depending on the hours they work (i.e. on a pro-rata basis).

In this example, you must provide the employee with approximately: 12 days of annual leave per year; and 6 days of personal carer’s leave per year. 

Casual 

Example – During the holiday season, you hire three casual employees who work irregular hours from week to week.

Because you don’t need to provide a casual employee with benefits like sick leave or annual leave, you must pay them a higher hourly pay rate. This is called casual loading.

All modern awards now include a term which gives a casual employee who works regular and systematic hours the right to request a full-time or part-time position after 12 months. 

Australian Employment Framework

In Australia, employees have rights at work under the National Employment Standards (NES), industrial awards and employment agreements.

The pyramid below depicts where an employee’s rights and protections come from. The base is the minimum threshold of rights that an employee is entitled to. Each additional layer offers greater rights and protections.

As an employer, you cannot avoid the rights and obligations set out in the bottom two layers (the NES or an applicable award).

Employment Agreement

An employment agreement sets out an employee’s rights, as well as your expectations about their performance and duties. We have set out some standard terms that your agreement should address, as well as some questions your lawyer may ask when drafting your agreement.

Terms and Questions to Consider

Type of Employment. Is your new hire a full-time, part-time or casual employee? What hours will they work? What is their position title? What are their duties?

Compensation. What is your new hire’s salary? What does it include (e.g. penalty rates, allowances, casual loading, superannuation)? How often will you review their salary? Will you reimburse them for work-related expenses? If so, what process must they follow?

Superannuation. Will your new hire earn $450 or more (before tax) in a month? If so, you’re legally required to pay them superannuation, which is set at 12%.

Notice Periods. How much notice must your employee provide when they resign? 

Probation Period. Will you put your new hire on a probation period? If so, how long will the period last? How will you assess your new hire’s progress and performance during this period?

Importantly, your new employee has paid leave entitlements during probation.

Intellectual Property (IP). Will your new hire be creating any intellectual property (IP) in their role (e.g. blog content)? Does your new hire know the consequences of disclosing your IP to a third party (e.g. a competitor)? Does your new hire know that you own any IP they create during the course of their employment?

Confidentiality. What confidential information will your new hire have access to (e.g. financial information, business plans, supplier lists)? Is there any type of confidential information unique to your business that the contract should specifically cover (e.g. specific client lists in a sales role)? 

Non-Compete Provision. Would your business suffer a substantial loss if your ex-employee were to work directly in competition with you after leaving? If your ex-employee were to engage in direct competition with you close to your office, would this impact your business?

If so, you may need to restrict your former employee from working for a competitor for a period or within a specific area. 

Leave Requirements. Will you offer any leave entitlements above those guaranteed under the NES? A full-time employee (other than a casual employee) is entitled to 20 days of paid annual leave per year. Does your employee handbook clearly set out how an employee should apply for leave, and how much notice they should provide?

Contractor’s Agreement

Contractors will need a contractor’s agreement. As with an employment agreement, your contractor’s agreement should address a number of standard issues.

Term and Questions to Consider

Scope and Delivery of the Project

Have you engaged your contractor to work on a specific project? What do you expect the contractor to deliver? When will the project begin and end? Can the contractor engage subcontractors to complete the work?

Compensation
What will you pay the contractor for their services (e.g. a fixed fee, an hourly rate, daily rates)? When will you pay the contractor (e.g. when the job is complete, within 14 days of providing the invoice)?

Superannuation
Is your contractor responsible for paying their own superannuation? If so, you should clearly state this in your contractor’s agreement.

Ownership and Use of IP

Will your contractor create IP (e.g. a software programmer writing the code for your business’ new subscription service)? Do you intend to own the IP the contractor creates?

If so, you need to state this in the contractor’s agreement expressly. Otherwise, you will have no right to use the IP when the contractor stops working with your business.

Non-Solicitation Provisions

Is your contractor in a client-facing role, or will they develop client relationships over time? A non-solicitation provision will prevent the contractor from asking former clients to follow them to their business.

Liability
What kinds of insurance do you need your contractor to have (e.g. public liability insurance, professional indemnity insurance)?

Confidentiality
What kinds of confidential information will your contractor be exposed to?

Is there any type of confidential information unique to your business that the agreement needs to cover specifically?

Sham Contracting

It is against the law to call a worker a contractor while treating them as an employee. This is called sham contracting.

There are Australian Taxation Office and Fair Work penalties if you mischaracterise workers to avoid your employment law obligations. You will also need to pay the worker any unpaid wages or leave entitlements.

If you are unsure of whether your worker is a contractor or an employee, you should seek legal advice.

CHECKLIST 

• Draft a position description setting out key roles and responsibilities.
• Write down the skills your new hire should possess to succeed in the role.
• Determine what type of worker you will need to complete the tasks (i.e. an employee or independent contractor).
• Prepare an employment agreement or contractor’s agreement for the role.
• Ensure any rate of pay complies with the minimum set out in the Fair Work Act or otherwise under an award or enterprise agreement.
• Confirm what other legal entitlements and obligations you will owe your new hire including by checking any applicable award or enterprise agreement.

Key Takeaways

The need to hire employees is an encouraging sign that your business is growing. But when you are cash-strapped and time-poor, finding the best person for a role can be draining, emotionally and financially. And even if you can carve out the time to do it, finding and recruiting top talent is a massive challenge – particularly in a competitive job market. By ensuring that you have a consistent and comprehensive recruitment and onboarding process, your employees will start on the right foot.

James True
August 22
legalvision.com.au

‘Results in paying more tax’: ATO warns Australians against early super access

The Tax Office is warning Australians against accessing their superannuation early for expenses related to inconsequential matters, events or items.

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The ATO is advising Australians on the potential risks associated with early superannuation access to pay for non-critical medical procedures or lifestyle expenses.  

It was revealed that the ATO was often seeing people trying to withdraw from their super to pay for things such as dental work, cosmetic treatments, investments, holidays and day-to-day expenses.   

Emma Rosenzweig, ATO deputy commissioner, said she wanted to caution those who were considering accessing their super to carefully consider their circumstances and the impacts this could have for the short- and long-term.

“Superannuation is saving for your retirement. Your employer pays 12 per cent super on top of your salary or wages as a long-term investment which grows over time and generally cannot be accessed until you reach preservation age or retire,” she said.

“We have seen an increase in dodgy advice and misconceptions around when individuals can access their super early, and we want to make it clear that Australians should not be considering early access unless they are eligible and it is absolutely necessary for their circumstances.”

“Access to super on compassionate grounds is available in very limited circumstances for critical medical procedures and should only be considered as a last resort where all other options of paying for the eligible expenses have been exhausted.”

The ATO noted that in the case a dentist advised someone that they could use super for cosmetic veneers, this would only be recommended on compassionate grounds.

Health practitioners can prepare medical reports that are used by patients to apply for early access to super on compassionate grounds, which the ATO relies on when assessing applications.

Rosensweig said it was important that practitioners undertook proper examinations of their patients and provided complete, true and correct information in their reports that reflected their professional opinion.

However, the ATO had seen increased cases of reports requesting to access super when ineligible and for reasons such as cosmetic procedures, the practitioner hasn’t conducted a proper consultation, poor advice has been given and valued profits ahead of patient care.

“We are aware of various reports about the conduct of some health practitioners who support individuals to access their superannuation on compassionate grounds. We are working with other regulators including the Australian Health Practitioner Regulation Agency to address any inappropriate behaviour,” Rosenzweig said.

“When preparing medical reports to support an application, health practitioners must ensure they perform their role ethically and to the expected standard, whilst ensuring they don’t provide services they aren’t competent to provide or trained for.”

The Tax Office also warned against having a third party assist with the application if they act inappropriately on an individual’s behalf, as individuals could still be liable for any consequences or penalties.

 In terms of medical treatments, anything undertaken with cosmetic intent wouldn’t normally qualify for compassionate release of super, as lawfully, an individual must require the treatment to treat a life-threatening illness or injury, alleviate acute or chronic pain, or alleviate acute or chronic mental illness.

“Applicants should be aware that submitting an application for health treatments that are not necessary for one of these reasons would be making a false or misleading statement to the Commissioner, which can attract severe penalties,” Rosenzweig said.

“These penalties can also apply to health practitioners who make false or misleading statements in medical reports.”

The ATO said it wanted to reiterate the fact that accessing super on compassionate grounds was only available in very limited circumstances where individuals were unable to pay for an eligible expense using any other means.

This was the case as early super access was not ‘free money’ and it would also reduce the amount available in retirement, as well as resulting in having to pay more tax.

“Individuals who apply need to ensure they are eligible and that they provide accurate information and documents in their application. Where applications are approved, individuals should remember that they have declared in their application that they will use the money to pay for the approved purpose and keep receipts to support this,” Rosenzweig said.

“There can be significant consequences for people who attempt to inappropriately access their super, including severe penalties for making false or misleading statements or adjustments to their income tax return so they are required to pay additional tax.”

 Imogen Wilson
27 August 2025
accountantsdaily.com.au

The rise and fall of the world’s largest economies | GDP Epic Battle (1560–2025)

From the age of empires to modern global superpowers, check out the rise and fall of the worlds superpowers.

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Australian Taxation Office (ATO) warns about misinformation on super changes circulating online

The ATO has recently issued a warning about misleading information regarding supposed changes to superannuation preservation and withdrawal rules.

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No such changes have been proposed by the Australian Government or Treasury, and none are in legislation.

Your super access rights

It’s important to understand when you can legally access your super, which is:

• when you reach preservation age and retire;
• when you turn 65, regardless of whether you’re still working; and
• if you’re between 60 and 65 and haven’t retired, you can start a transition to retirement income stream (TRIS), which allows you to receive a regular income from your superannuation.

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ATO, lawmakers demand urgent action as GST fraud skyrockets

The Tax Office is strongly warning businesses against committing GST fraud as reports of refund fraud surge.

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The ATO has published a new taxpayer alert, ‘TA 2025/2: Arrangements designed to improperly obtain goods and services tax refunds’, to warn businesses against using arrangements to collude with another related business to create fraudulent invoices, so they could attempt to claim large GST refunds.

According to the Tax Office, tax professionals should be aware that these fraudulent claims were increasing, and as previously reported by Accountants Daily, were predominantly within the property and construction industry.

“We’ve also identified early signs of it proliferating in other industries, particularly by privately owned and wealthy groups,” the ATO said.

It was noted that this surge in GST refund fraud cases was not related to or captured by Operation Protego, where individuals created fake businesses and lodged fake BAS statements to gain GST refunds.