Over $500 million in dodgy tourism tax claims may have been paid out by the government because of ineffective management.
An audit report has questioned the management of the scheme saying it has been made a low priority by the Department of Home Affairs and Australian Taxation Office.
The Tourist Refund Scheme (TRS) allows travelers leaving Australia to claim a refund on the Goods and Services Tax and Wine Equalisation Tax paid on purchases made in Australia within the past 60 days.
It has been determined the tax refunds for Australian citizens costed the budget up to $555.6 million over 20 years, according to the audit office.
The report by the National Audit Office found the administration of the TRS by Home Affairs and the ATO has only been “partly effective.”
“Detections of significant instances of fraud have been ad hoc rather than as a result of systematic data analysis,” it reads.
“Home Affairs and the ATO have determined that TRS compliance is a low priority.”
While around 60 percent of countries have such a scheme, the ATO believes Australia is the only country worldwide that allows its own citizens and residents to participate.
Evidence suggested a large level of non-compliance from Australian citizens and “significant revenue leakage” of between $244 million to $557 million since July 2000.
