- Tax Season Security
- Small Business Protection
- ATO Scams
CommBank data reveals small business owners averaged $5,000 tax refunds in 2024, but scammers are targeting this busy season. Learn how to protect your business from tax-time fraud.
Small Business Tax Refunds Average $5,000 Across Australia
New data released by Commonwealth Bank reveals that small business owners across Australia received an average tax refund of approximately $5,000 for the 2024 financial year, based on funds deposited into business customer accounts by the Australian Taxation Office. This substantial figure represents significant cash flow relief for many small businesses navigating ongoing economic challenges and operational pressures.
The bank's comprehensive analysis of ATO deposits into small business accounts provides valuable insights into regional variations and industry-specific refund patterns. These findings offer important context for understanding both the financial landscape facing Australian small businesses and the attractive targets they represent for cybercriminals during tax season.
Regional variations in average refund amounts reveal interesting patterns across Australian states and territories. The Australian Capital Territory and Queensland led with the highest average refunds at $5,700, followed by Victoria at $5,300, New South Wales at $4,900, and Western Australia at $4,800. These differences likely reflect varying business structures, industry concentrations, and economic conditions across different regions.
Industry-Specific Refund Patterns Across States
The data analysis reveals distinct industry patterns for tax refunds across different Australian states, highlighting how regional economic structures influence small business taxation outcomes. Electricians and plumbing businesses emerged as top recipients of average tax returns in both New South Wales and Tasmania, reflecting the strong demand for essential trade services in these markets.
Western Australia's mining-dependent economy shows clearly in the data, with mining contractors receiving the highest average tax refunds in that state. This pattern reflects both the capital-intensive nature of mining operations and the significant deductions available to businesses supporting this critical industry sector.
Victoria's diverse economy is represented through education and communication services topping the average refund lists, whilst Queensland's agricultural strengths are evident with small agriculture businesses receiving the highest average returns. These industry variations demonstrate how regional economic specialisations directly impact small business taxation outcomes.
Understanding these patterns helps small business owners benchmark their own tax situations against industry peers whilst providing context for the substantial refund amounts that make businesses attractive targets for sophisticated scam operations during tax season.
Tax Season Scam Threats Targeting Busy Business Owners
Rebecca Warren, CommBank's Executive General Manager for Small Business Banking, emphasises that tax time represents both relief and stress for small business owners. Whilst many anticipate refunds, this period also brings increased cash flow pressures, ATO debt concerns, and elevated scam risks that particularly target distracted business operators.
The combination of financial stress and operational demands creates ideal conditions for scammers who exploit the busy tax season when small business owners are juggling multiple responsibilities. Warren notes that business owners often lack time to properly stop, check, and reject payment requests that may appear suspicious under normal circumstances.
Criminal organisations specifically time their operations to coincide with tax season, knowing that small businesses are managing increased paperwork, financial reviews, and communications with accountants and the ATO. This heightened activity level provides cover for fraudulent communications that might otherwise raise immediate suspicion.
The substantial average refund amounts revealed in the CommBank data ($5,000 nationally, up to $5,700 in some regions) represent significant financial targets that make sophisticated scam operations economically viable for criminal enterprises targeting Australian small businesses.
Common Tax Season Scam Tactics and Warning Signs
Cybercriminals employ increasingly sophisticated tactics during tax season, frequently impersonating government agencies such as the Australian Taxation Office or myGov through emails, text messages, and phone calls designed to steal personal information and money. These impersonation scams exploit the legitimate increase in government communications during tax season.
Unsolicited messages or calls requesting personal or financial information represent primary warning signs of potential fraud attempts. Legitimate government agencies follow specific protocols for taxpayer communications and will never request sensitive information through unsecured channels or demand immediate payments through unusual methods.
Suspicious links and email attachments serve as common delivery mechanisms for malware designed to compromise business computer systems and steal financial information. Scammers create convincing replicas of ATO websites and official communications that can deceive even cautious business owners under time pressure.
Warren specifically warns about payment requests that don't appear quite right, emphasising the importance of verification before proceeding with any financial transactions claimed to be from government agencies. The 'stop, check, reject' approach becomes crucial when dealing with unexpected or urgent-seeming payment demands.
Proactive Tax Preparation and Security Measures
CommBank recommends that small businesses adopt a proactive approach to tax preparation that includes separating business and personal finances, digitising receipts and records, reviewing all eligible deductions, and planning effectively for the upcoming financial year. These practices not only improve tax outcomes but also create better documentation trails that assist in identifying fraudulent activities.
Digital record-keeping systems provide multiple benefits during tax season, including improved organisation, easier access to supporting documentation, and better ability to verify legitimate versus fraudulent communications. Cloud-based systems often include security features that help protect sensitive financial information.
Regular review of eligible deductions ensures small businesses maximise legitimate refund opportunities whilst maintaining detailed records that support their claims. This thorough approach to documentation also helps business owners identify suspicious communications that don't align with their actual tax situations.
Forward planning for the upcoming financial year enables small businesses to implement stronger financial controls and security measures that provide ongoing protection against fraud attempts beyond the immediate tax season period.
Verification Strategies for Government Communications
Direct verification with the ATO represents the most reliable method for confirming the legitimacy of any tax-related communications. The ATO maintains dedicated phone lines and online portals that enable taxpayers to verify any suspicious communications immediately without risking exposure to fraudulent schemes.
Business owners should maintain independent contact methods for the ATO and other government agencies, rather than using contact details provided in potentially fraudulent communications. Official government websites provide verified contact information that can be trusted for confirmation purposes.
Multi-factor authentication should be enabled on all business accounts related to tax affairs, including ATO online services, banking platforms, and accounting software. This additional security layer significantly reduces the risk of unauthorised access even if passwords are compromised through scam attempts.
Regular monitoring of business bank accounts and credit reports helps identify unauthorised activities that might result from successful scam attempts. Early detection enables faster response and potentially reduced financial impact from fraudulent transactions.
Ongoing Support and Economic Context
Warren acknowledges that small businesses face numerous ongoing challenges beyond immediate scam threats, including economic uncertainty, ATO debt management, and cash flow constraints that particularly intensify during tax season. These broader pressures contribute to the stress that makes business owners more vulnerable to sophisticated fraud attempts.
Small businesses serve as the backbone of Australia's economy, requiring comprehensive support that extends beyond traditional banking services to include tools, insights, and personalised assistance. Financial institutions increasingly recognise their role in providing cybersecurity education and fraud prevention resources.
The Australian Taxation Office supports these protective efforts by encouraging taxpayers to utilise available support services during tax season. Assistant Commissioner Rob Thomson emphasises the ATO's priority of helping taxpayers complete their lodgements correctly whilst providing programs and services to assist with tax affairs management.
Community awareness and education about tax season scams requires ongoing effort from financial institutions, government agencies, and business associations working together to protect small business operators from increasingly sophisticated criminal enterprises targeting this crucial sector of the Australian economy.