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It’s a common question that pops up every tax season: “Can I claim my sunglasses or work bag as a tax deduction?”

At first glance, these items may seem personal. After all, everyone wears sunglasses or carries a bag. But under certain conditions, the Australian Taxation Office (ATO) does allow deductions for these purchases, provided they’re directly related to earning your income.

This article unpacks the rules, explains who can make these claims legitimately, and highlights how to stay compliant while maximising your potential deductions.

Quick Summary

• Sunglasses are deductible if used primarily to protect against sunlight in outdoor work.
• Work bags can be deductible if used mainly for transporting work-related tools, equipment, or documents.
• Personal or fashion-based use disqualifies most claims.
• Apportion mixed-use items according to work-related percentage.
• Keep detailed records — receipts, logs, and usage notes are crucial.

When Are Sunglasses Tax-Deductible?

The ATO recognises sunglasses as protective equipment when they are used to reduce exposure to sunlight and glare in the course of work duties.

This deduction applies primarily to employees who spend a substantial portion of their day outdoors such as construction workers, delivery drivers, landscapers, farmers, and outdoor event staff.

According to the ATO’s guidelines on protective clothing, these items must be used to protect against risks directly related to your job.

Example 1: The Outdoor Worker

A civil engineer regularly inspects construction sites in direct sunlight and purchases $220 polarised sunglasses.

The cost is fully deductible because the sunnies are protective and necessary for work.

Example 2: The Office-Based Employee

A marketing coordinator buys the same sunglasses but only uses them for commuting to the office.

The expense is not deductible, as travel to and from work is private in nature.

Pro Tax Tip: If your sunglasses serve both professional and personal purposes, you must claim only the work-related portion. The ATO may request substantiation for your apportionment.

When Are Bags Tax-Deductible?

Work bags are claimable when they are used mainly to transport work-related materials or tools such as laptops, client files, or specialised equipment.

The ATO classifies them as “work-related tools or equipment,” provided the primary purpose of the item supports your income-earning activities.

Example 3: The Consultant

A business consultant purchases a $190 briefcase used exclusively to carry a laptop and business contracts.

The full cost is deductible as the bag is used solely for work purposes.

Example 4: The Graphic Designer

A freelancer buys a $160 backpack and uses it 70% for work (to carry a laptop and sketch tablet) and 30% for personal use.

The designer can claim 70% of the cost ($112).

Example 5: The Retail Assistant

A retail employee buys a handbag to match her work uniform and carry personal belongings.

Not deductible because the purchase is for personal convenience, not work necessity.

Pro Tax Tip: To strengthen your claim, retain a simple log or estimate detailing how often you use the bag for work versus personal use.

Expenses You Cannot Claim

The ATO is very clear about where the line is drawn. The following are not deductible under any circumstance:

Non-Deductible Items	Reason
Designer sunglasses or handbags used for style	Personal and fashion-related
Sunglasses used for driving to work	Travel to and from work is private
Bags primarily used for gym, groceries, or personal items	No direct connection to income
Items provided or reimbursed by your employer	Already compensated, so cannot be claimed

If you’re unsure, always consider the “income-earning connection test”.

Would you have bought the item if you weren’t earning income in that job? If the honest answer is “no,” the claim is more likely to be legitimate.

How to Claim Sunglasses and Bags Correctly

Claiming these deductions correctly involves a few simple but important steps:

1. Keep Your Receipts
   You must have a valid tax invoice or receipt showing the date, supplier, amount, and description.
   
2. Determine Work-Related Use
   Estimate how much of the item’s use is for work purposes. If it’s partly personal, claim only the relevant percentage.
   
3. Apply the $300 Rule
   
   • If an item costs $300 or less, you can claim an immediate deduction.
   • If it costs over $300, you must claim depreciation over its effective life.
     
4. Record Your Usage
   Keep brief notes, digital logs, or diary entries indicating how the item supports your work activities.
   
5. Lodge Under the Right Category
   
   • Sunglasses: “Protective clothing or safety equipment”
   • Bags: “Work-related tools or equipment”
     

Common Mistakes to Avoid

Even seasoned taxpayers make errors when claiming small work-related expenses. Avoid these pitfalls:

• Claiming 100% of a mixed-use item. If you use it personally, you must apportion.
  
• Claiming without receipts. The ATO requires documentation. Estimates aren’t enough.
  
• Double claiming. You can’t claim items reimbursed by your employer.
  
• Claiming for commuting. Driving-related sunglasses or bags used only for travel to work are not deductible.
  

Pro Tax Tip: Small claims often attract less scrutiny individually, but patterns of over-claiming across years can trigger ATO reviews.

Can You Claim Repairs or Replacements?

Yes. If an item was initially deductible, you can also claim costs for repairs, maintenance, or replacement.

For instance:

• Replacing scratched lenses in work sunglasses
• Repairing a damaged zipper on a laptop bag
  

However, if the replacement item is an upgrade or new purchase, it may need to be depreciated rather than fully expensed.

Record-Keeping Made Easy

Keeping track of small deductions doesn’t have to be complicated. The ATO myDeductions app allows you to:

• Photograph receipts
  
• Record usage notes
  
• Export data directly into your tax return or share it with your tax agent
  

Consistent, well-kept records can significantly strengthen your case if the ATO questions your deductions.

Special Considerations for Self-Employed Workers

If you work for yourself, for example, as a freelancer, subcontractor, or small business owner, the rules are slightly broader.

You can generally claim any expense directly related to earning your income, provided:

• It’s not private or domestic in nature.
  
• It’s substantiated with evidence.
  

A courier, for example, who buys protective sunglasses for daily driving can claim 100% of the cost as a business expense.

Meanwhile, a self-employed photographer using a bag to transport lenses and equipment can also claim the full cost.

For broader guidance, read ITP’s detailed post on self-employed tax deductions.

Real-Life Scenarios

Scenario	Deductible?	Explanation
Construction worker buys safety sunglasses	Yes	Protective gear for outdoor work
Retail employee buys a handbag for personal items	No	Not directly related to income
Freelance designer buys laptop backpack	Partially yes	Used for work equipment
Delivery driver replaces damaged bag	Yes	Directly used to earn income
Office worker buys designer sunglasses	No	Fashion, not functional

Why Proper Claims Matter

While sunglasses and bags may seem minor, incorrect claims can have larger consequences.

The ATO actively monitors deduction patterns and compares them with industry benchmarks. Overstating personal expenses as work-related can lead to:

• Denied claims
  
• Amended returns
  
• Penalties or interest charges
  

Being transparent and realistic not only ensures compliance but also helps you build credibility as a taxpayer.

Consult a Tax Professional

Navigating mixed-use deductions can be tricky. Small distinctions — such as whether a bag carries work tools or personal belongings — can determine whether a claim is valid.

A registered tax agent, such as ITP The Income Tax Professionals, can review your circumstances, calculate depreciation where needed, and ensure every claim you make meets ATO requirements.

Final Thoughts: Function Over Fashion

When it comes to tax deductions, the ATO focuses on function, not fashion.

If an item’s primary function supports your work duties, it may be deductible. But if it’s purchased mainly for personal use, style, or convenience — it’s not.

So, before adding that sleek pair of sunglasses or designer tote to your claim list, ask yourself one question:

“Would I have purchased this item if I didn’t need it for work?”

If the answer is “yes,” leave it off your return.
If “no,” and you can back it up with evidence, you may just have a legitimate deduction.

Frequently Asked Questions

Can I claim sunglasses as a tax deduction in Australia?

Yes, if your sunglasses are used primarily for work purposes, such as protecting your eyes from glare or UV exposure while working outdoors. This applies to occupations like builders, delivery drivers, landscapers, and farmers. However, sunglasses used for commuting or personal wear are not deductible.

Can I claim my work bag or backpack on tax?

You can claim a deduction for a work bag if it’s mainly used to carry work-related tools, laptops, documents, or equipment. The key is demonstrating that the bag’s purpose is professional, not personal. Handbags or designer totes used for fashion or convenience are not claimable.

How do I claim sunglasses or bags on my tax return?

Sunglasses fall under “Protective clothing or safety equipment”, while bags are lodged under “Work-related tools or equipment.” Keep receipts, determine your work-use percentage, and claim accordingly.

What if I use my sunglasses or bag for both work and personal use?

If you use the item for mixed purposes, you can only claim the portion that relates to work. For example, if you use a bag 70% for carrying work tools and 30% for personal use, you can claim 70% of its cost.

Are expensive designer sunglasses or handbags deductible?

No. The ATO considers these personal or fashion-related purchases, not work-related necessities. Deductions apply only when the item’s primary function supports your work duties.

What is the $300 rule for work-related items?

If your sunglasses or bag cost $300 or less, you can claim an immediate deduction. For items over $300, you’ll need to depreciate the cost over their effective life.

Can I claim repairs or replacements for these items?

Yes, if the original item was deductible. You can claim expenses for repairs (like fixing zippers or replacing lenses). But if you buy a new or upgraded version, it may need to be depreciated.

What kind of records should I keep for these claims?

Keep detailed receipts showing the supplier, cost, and date. You can also record usage notes or logs that show how the item supports your work. The ATO myDeductions app makes this process simple.

Can self-employed workers claim these expenses too?

Absolutely. If you’re a freelancer, subcontractor, or small business owner, you can claim sunglasses or bags that directly relate to your income-earning activities. Just ensure you have receipts and that the use isn’t personal.

What happens if I claim something that’s not deductible?

The ATO may deny the claim, amend your return, or impose penalties if they find personal expenses listed as work-related. Always ensure your claims have a clear connection to your job duties and maintain proper documentation.

How do I know if my claim will be accepted by the ATO?

Ask yourself: “Would I have bought this item if I didn’t need it for work?”
If the answer is no, your claim is likely legitimate. If it’s yes, it’s probably personal and not deductible.

More Helpful Articles

Remote Work Tax Deductions 2025: Complete Guide for Australian Employees

Work Travel Expenses 2025 Tax Return: Complete ATO Guide

Rental Property Tax Deductions Australia 2025: Complete Guide

Keeping Tax Records: How To Maximise Your Deductions

Disclaimer: This information is general in nature and does not constitute professional tax advice. Always refer to the ATO website or consult a registered tax agent for guidance tailored to your specific circumstances.

That urgent email about recalculating your taxable income? The phone call claiming you owe immediate tax debt? The text message offering a “guaranteed refund” if you click the link? If any of these scenarios sound familiar, you’ve likely encountered an ATO impersonation scam, and you’re certainly not alone.

In July 2025, the ATO received 7,420 reports of impersonation scams, representing a 75% increase from June. Despite this alarming rise in scam attempts, the good news is that Australians are becoming more scam-aware: the amount of money actually paid to scammers decreased by 75% in the 2022–23 financial year, with only 28 people paying money to scammers.

Quick Summary: Your Scam Protection Checklist

The golden rule is simple: when in doubt, don’t engage. Legitimate ATO communications can always be verified through official channels.

Red flags to watch for:

• Unsolicited emails, texts, or calls demanding immediate action
• Requests for personal information like Tax File Numbers or Medicare details
• Threats of arrest, asset seizure, or immediate legal action
• Links or attachments in unexpected communications
• Demands for payment via gift cards, cryptocurrency, or wire transfers

Safe response protocol:

1. Don’t click links, open attachments, or provide any information
2. End the call or delete the message
3. Contact the ATO directly on 1800 008 540 to verify
4. Report the scam to help protect others

Bottom line: The ATO will never demand immediate payment or threaten arrest. They don’t send unsolicited messages with hyperlinks, and they’ll never ask you to pay with gift cards or cryptocurrency. When you’re unsure, verify first.

Current Scam Trends: What’s New in 2025

As tax professionals who’ve been helping Australians for over 50 years, we see firsthand how these scams are becoming increasingly sophisticated. Modern scammers leverage artificial intelligence, deepfake technology, and convincing government branding to create threats that can fool even cautious taxpayers. Understanding how to identify and respond to these scams isn’t just about protecting your money! It’s also about safeguarding your personal information and maintaining peace of mind during tax time.

With tax season bringing a “deluge of scam activity” and scammers taking advantage of any situation where people expect to hear from the ATO, staying informed about current threats has never been more crucial for your financial security.

Scammers continuously evolve their tactics, and 2025 has brought some particularly sophisticated approaches that have caught many taxpayers off-guard.

Email Scams Are Surging

Email has increased by 179% as scammers’ preferred contact method, with targeted phishing attempts becoming remarkably convincing. These scams often tell people their ‘2022 tax lodgment’ has been received and ask them to open an attachment to sign a document and complete their ‘to do list details’. Opening the attachment takes you to a fake Microsoft login page designed to steal your login details.

“The sender’s email address often looks legitimate, which is what catches people out,” explains ITP senior tax advisor Michael Roberts. “Scammers are getting better at spoofing official government email addresses and using language that sounds exactly like what you’d expect from the ATO.”

SMS Scams Have Exploded

SMS contact has increased by 414%, with scammers knowing that text messages often feel more urgent and personal than emails. However, there’s a key way to identify these immediately: the ATO no longer uses hyperlinks in outbound unsolicited SMS. If you receive a text claiming to be from the ATO with a clickable link, it’s definitely a scam.

The “Compensation” Scam

One of the most insidious current scams involves emails falsely telling people their taxable income has been recalculated and they are due to receive compensation. To claim the amount, recipients are asked to reply with personal identifying information such as payslips, TFN, driver’s licence and Medicare details.

Scammers use this information to:

• Commit refund fraud by filing false tax returns
• Access banking and credit facilities
• Sell personal information to other criminals
• Take over existing accounts and services

Artificial Intelligence and Deepfakes

Modern scammers now use AI-generated content and deepfake technology to create highly convincing voice calls and video messages. These can include realistic government branding, familiar voices, and professional presentation that makes them extremely difficult to identify as fraudulent.

How to Identify Legitimate ATO Communication

Understanding how the ATO actually communicates can protect you from sophisticated impersonation attempts.

Official ATO Communication Methods

Letters: The ATO sends official correspondence via Australia Post with clear branding and contact details for verification.

Phone: The ATO may call you, but they’ll never demand immediate payment or threaten arrest. They’ll provide their name, a contact number you can call back, and explain why they’re calling.

Email and SMS: The ATO may use email or SMS to ask you to contact them, but they will never send an unsolicited message asking you to return personal identifying information through these channels.

myGov Account: Legitimate electronic correspondence from the ATO can be found in your myGov account inbox.

What Legitimate ATO Communication Looks Like

“Real ATO communications are typically measured and professional,” notes Michael. “They don’t create false urgency, they don’t demand immediate action within hours, and they always provide multiple ways to verify the communication’s authenticity.”

Legitimate features include:

• Professional language without spelling errors
• Clear explanation of why you’re being contacted
• Reference numbers you can quote when calling back
• Multiple contact options for verification
• No requests for immediate payment or personal information via email/SMS

The ATO Will Never:

• Send unsolicited emails or texts with hyperlinks to sign in to services
• Threaten immediate arrest or asset seizure
• Demand payment via gift cards, cryptocurrency, or wire transfers
• Ask for passwords, PINs, or full credit card details over the phone
• Request Tax File Numbers or Medicare details via email or SMS
• Offer “guaranteed” refunds requiring immediate action

Types of Scams to Watch For

Understanding specific scam types helps you recognise threats before you become a victim.

Refund Scams

These promise large tax refunds in exchange for personal information or upfront fees. Variations include:

• “Unclaimed refund” emails requiring bank details to process
• Text messages about processing refunds with urgent deadlines
• Phone calls offering guaranteed refunds for a processing fee

Reality check: The ATO doesn’t offer refunds you haven’t legitimately earned, and they don’t require upfront fees to process refunds.

Debt Collection Impersonation

Sophisticated scams impersonate both the ATO and legitimate debt collection agencies like recoveriescorp. These typically:

• Threaten immediate legal action for alleged tax debts
• Demand payment within hours to avoid arrest
• Refuse to provide written confirmation of debts
• Insist on payment methods that can’t be traced

Red flag: Legitimate debt collection follows strict legal processes and always provides written confirmation of debts.

Tax Scheme Promotion

These aren’t traditional scams but unlawful tax schemes that promise easy wins but lead to financial loss, legal action, and hefty penalties. Warning signs include:

• Promises of huge tax savings that seem too good to be true
• Zero-risk guarantees on tax minimisation strategies
• Schemes that promise you can avoid tax obligations entirely
• Complex structures designed to hide income or inflate deductions

“In some instances, cases will be pursued as criminal matters with the worst cases resulting in imprisonment,” warns Deputy Commissioner Hoa Wood. “Those who participate in unlawful tax schemes will not only have to pay back the tax, but potentially face significant penalties in the range of 10 to 90 per cent of the tax avoided, plus interest.”

Social Media Misinformation

Bad social media advice continues to be a growing concern, with incorrect tax information circulating that can mislead honest taxpayers. This includes:

• TikTok videos sharing wildly inaccurate tax advice
• Posts urging people to misuse common tax documents like Form W-2
• “Secret” tax strategies that are actually illegal
• Influencer promotion of questionable tax schemes

Business Email Compromise

These target businesses during tax time with sophisticated email attacks designed to:

• Intercept legitimate tax communications
• Redirect tax refunds to criminal accounts
• Access business banking systems
• Steal customer and employee data

What to Do If You’re Targeted

Knowing how to respond immediately can prevent minor encounters from becoming major problems.

If You Haven’t Shared Information or Money

1. Don’t engage: Don’t click links, open attachments, or respond to the scammer
2. Report the scam: Forward emails to ReportScams@ato.gov.au or take screenshots of SMS messages and email them to the same address
3. Delete everything: Remove the scam message from your inbox, sent items, and deleted items
4. Stay alert: Watch for follow-up attempts using slightly different approaches

If You’ve Shared Personal Information

Immediate actions:

1. Call the ATO: Phone 1800 008 540 immediately to report what happened
2. Contact your bank: If you provided banking details, notify your financial institution
3. Change passwords: Update all online account passwords, especially banking and government services
4. Monitor accounts: Watch for unauthorised transactions or account access

Follow-up protection:

• Place fraud alerts on your credit files
• Monitor government services for unauthorised access
• Keep detailed records of all communications and actions taken
• Consider identity monitoring services

If You’ve Paid Money

Critical first steps:

1. Call the ATO: Phone 1800 008 540 immediately
2. Contact your bank: Lodge a fraud report and attempt to stop or reverse payments
3. Report to police: File a fraud report with local police for serious financial losses
4. Document everything: Keep records of all payments and communications

Additional support:

• Contact the Australian Cyber Security Centre for cybercrime reporting
• Reach out to Scamwatch for additional support and resources
• Consider legal advice for significant financial losses

Age-Specific Scam Risks

Different age groups face varying levels of risk and different types of scam approaches.

25-34 Year Olds: Highest PII Risk

This demographic remains the age group that divulges the most personal identifying information (PII) to scammers. Common vulnerabilities include:

• High comfort level with digital communications
• Assumption that sophisticated emails must be legitimate
• Busy lifestyles leading to quick decisions without verification

35-44 Year Olds: Highest Payment Risk

This group is now most likely to pay money to scammers, representing a shift from younger demographics. Risk factors include:

• Higher disposable income making them attractive targets
• Increased tax complexity with mortgages, investments, and family responsibilities
• Greater concern about tax compliance leading to hasty responses to threats

Older Australians: Phone Scam Targets

Seniors often face more traditional phone-based scams with scammers:

• Impersonating authority figures to create pressure
• Using complex stories to confuse and overwhelm
• Targeting during business hours when other family members are unavailable

Technology-Enhanced Protection

Modern technology can help protect you from increasingly sophisticated scams.

Email Security

• Enable two-factor authentication on all government and banking accounts
• Use email providers with strong spam filtering
• Be suspicious of unexpected emails from any government agency
• Verify sender addresses carefully — scammers use addresses that look similar to legitimate ones

Phone Protection

• Use caller ID and screening services
• Don’t answer calls from unknown international numbers
• Let suspicious calls go to voicemail first
• Be aware that scammers can spoof Australian phone numbers

Banking Safeguards

• Set up account alerts for all transactions
• Use secure payment methods for legitimate government payments
• Never provide banking details via email or SMS
• Regularly monitor accounts for unauthorised activity

Building Family Scam Awareness

Protecting your household requires everyone to understand current threats and response protocols.

Teaching Children and Teens

• Explain that government agencies don’t communicate via social media
• Show them how to verify suspicious communications
• Emphasise the importance of involving adults before responding to any official-sounding messages
• Teach them to recognise pressure tactics and urgent demands

Protecting Elderly Family Members

• Regularly discuss current scam trends
• Provide simple verification procedures they can follow
• Ensure they have trusted contacts for checking suspicious communications
• Consider technology solutions that can filter calls and emails

Workplace Awareness

• Implement business email security protocols
• Train staff to verify any tax-related communications
• Establish procedures for handling suspicious approaches
• Regularly update security software and systems

Professional Support and Resources

While most scam encounters can be handled individually, some situations require professional assistance.

When to Seek Help

Consider professional support if:

• You’ve lost significant money to scammers
• Your personal information has been extensively compromised
• You’re facing complex identity theft issues
• Tax returns have been fraudulently lodged in your name
• You’re dealing with multiple compromised accounts

Available Support Services

Government Resources:

• ATO Scam Reporting: 1800 008 540
• Scamwatch: Comprehensive scam information and reporting
• Australian Cyber Security Centre: Cybercrime reporting and support
• myGov Security: Account security and fraud protection

Professional Services:

• Tax professionals for complex tax-related fraud issues
• Legal advisors for significant financial losses
• Financial counsellors for budget impact management
• Identity monitoring services for ongoing protection

How ITP Can Help

At ITP, we’ve been helping Australians navigate tax challenges for over 50 years, including the increasing complexity of tax-related fraud and scams. Our experienced advisors can assist with:

• Scam aftermath management: Helping restore legitimate tax affairs after fraud attempts
• Preventive education: Training you and your family to recognise evolving threats
• Secure communication protocols: Establishing verified channels for tax communications
• Identity verification: Ensuring your legitimate tax matters aren’t compromised by fraud

If you’ve been targeted by tax scams or want to ensure your tax affairs are properly protected, book a consultation with one of our experienced advisors, or visit one of our offices across Australia to discuss your specific situation.

Remember, the cost of professional protection is minimal compared to the potential cost of falling victim to sophisticated scams.

Staying Ahead of Evolving Threats

Scam protection is an ongoing process, not a one-time setup. Staying informed about current threats and maintaining good security practices helps ensure you’re protected as scammer tactics evolve.

Regular Security Reviews

Monthly: Check bank and credit card statements for unauthorised transactions Quarterly: Review and update passwords for government and financial accounts Annually: Run comprehensive security scans and update protection software Ongoing: Stay informed about current scam trends through official ATO communications

Information Sources to Trust

• ATO official website and verified social media accounts
• Scamwatch alerts and newsletters
• Reputable news sources for major scam warnings
• Professional tax advisors with current industry knowledge

Building Long-term Protection

Education: Regularly update your knowledge of current scam trends and protection methods Technology: Maintain current security software and use strong authentication methods Networks: Build trusted relationships with verified professional advisors Procedures: Establish and practice verification protocols for all tax-related communications

The Bottom Line: Trust but Verify

The sophistication of modern tax scams means that even careful, intelligent people can become victims. The key to protection isn’t perfection — it’s developing reliable habits for verification and response that protect you even when scammers get better at their tactics.

The ATO’s own data shows that while scam attempts are increasing dramatically, actual financial losses are decreasing as Australians become more aware and educated about how to identify and report scams. By staying informed, maintaining healthy skepticism about unexpected communications, and knowing how to verify legitimate contact from the ATO, you’re joining the growing number of Australians who successfully protect themselves from these threats.

Remember: when you’re contacted by someone claiming to be from the ATO, the safest approach is always to verify first through official channels. A few minutes spent confirming legitimacy can save you months or years of dealing with the consequences of fraud.

Your vigilance doesn’t just protect you — by reporting scam attempts and staying educated about current threats, you’re helping protect your family, friends, and community from these evolving dangers.

FAQs: Your ATO Scam Questions Answered

How can I tell if a phone call is really from the ATO?

Legitimate ATO calls will include the caller’s name, a direct contact number you can call back, and a clear explanation of why they’re calling. They’ll never threaten immediate arrest or demand payment during the call. If you’re unsure, hang up and call the ATO directly on 1800 008 540 to verify.

What should I do if I clicked a link in a suspicious ATO email?

Don’t enter any information on the website. Close your browser immediately and run a security scan on your device. Change passwords for your myGov account and any other government services. Monitor your accounts closely for suspicious activity and report the incident to ReportScams@ato.gov.au.

Can scammers really make their emails look like they come from the ATO?

Yes, email spoofing technology allows scammers to make emails appear to come from legitimate government addresses. Always verify suspicious communications through official channels rather than relying on the sender address. Check the content for urgency, threats, or requests for personal information — these are red flags regardless of how legitimate the email looks.

What information is safe to give to someone claiming to be from the ATO?

Never provide Tax File Numbers, Medicare details, banking information, or passwords via email, SMS, or to unsolicited callers. If someone legitimately from the ATO needs information, they’ll explain what they need and why, and give you time to verify their identity through official channels.

How do I know if my personal information has been compromised?

Warning signs include unexpected communications from banks or government agencies, accounts you didn’t open, unauthorised transactions, or tax returns lodged without your knowledge. If you suspect compromise, contact the ATO on 1800 008 540 and your bank immediately. Consider placing fraud alerts on your credit files.

Are there legitimate debt collection agencies that work with the ATO?

Yes, the ATO sometimes uses external debt collection agencies like recoveriescorp. However, legitimate debt collectors follow strict legal processes, provide written confirmation of debts, and don’t threaten immediate arrest or demand unusual payment methods. If you’re contacted by a debt collector claiming to represent the ATO, call the ATO directly to verify.

More Helpful Articles

Tax Calculator Australia 2025: Why It’s Still the Easiest Way to Estimate Your Refund

Rental Property Tax Deductions Australia 2025: Complete Guide

Rental Property ATO Compliance 2025: Audit Triggers and Prevention Guide

Working From Home Tax Claims 2025: Are You at Risk of an ATO Review?

Disclaimer: This information is general in nature and doesn’t take into account your specific circumstances. If you believe you’ve been targeted by scams or have concerns about your tax affairs, please consult with a qualified professional or contact the ATO directly.