ATO investigated 150 staff members for involvement in GST scam that sparked Operation Protego

Relevant impacts: Human impact, Government outcomes impact, Reputational impact, Financial impact, Business impact.

Up to 150 Australian Taxation Office staff have been investigated for suspected involvement in a social media scam that ripped off $2 billion.

In an auditor-general's report into fraud management of the GST, the tax office revealed it sacked some employees and launched criminal investigations into others who were linked to the widespread rort.

The ATO workers were investigated as part of Operation Protego, which was set up to target people who benefited from fake GST refunds. The operation was set up after the tax office received a large increase in refund fraud tip-offs, as well as an increase in the number of Australian business number and GST registrations. Social media videos offered advice on how people could claim more money through GST refunds.

It's estimated more than 57,000 people tried to claim the false refund. The report said among those were 150 tax office staff, who were investigated by the ATO's internal fraud team.

Since the operation was set up, the ATO has reclaimed more than $2 billion and has stopped a further $2.7 billion from being transferred just before payment was made.