GST Refund Fraud: Simple BAS Checks for Physio Clinics

The ATO updated its page on GST refund fraud attempts on 20 August 2026.

The page is about fraud. But it is also a useful reminder for honest clinic owners.

Your BAS needs clean GST records.

This matters for physio clinics because many physio services are GST-free when they meet the health service rules. At the same time, clinics often pay GST on rent outgoings, software, supplies, marketing, repairs, and equipment.

That mix can make BAS work easy to get wrong.

Why GST refunds need care

Some clinics may get GST refunds at times.

This can happen when the clinic pays GST on costs but does not collect much GST on patient consultations.

A refund is not a problem by itself. But it should be backed by good records.

If a refund claim is wrong, the clinic may need to fix it later. That can cost time, stress, and cash.

Check your income first

Do not treat all clinic income the same.

Patient treatment may be GST-free when the rules are met. But other income may be different.

Check items such as:

• product sales
• classes or programs
• room hire
• reports for third parties
• online products
• admin fees
• cancellation fees

If these are coded the wrong way, your BAS may be wrong.

Check your expenses next

A common BAS mistake is claiming GST credits when there is no valid GST amount to claim.

Before lodging, look at larger costs first.

Check:

• equipment invoices
• software bills
• rent and outgoings
• insurance
• bank fees
• motor vehicle costs
• contractor invoices
• staff reimbursements

Make sure the invoice supports the GST claim. If the supplier is not registered for GST, or the bill has no GST, you may not be able to claim a GST credit.

Watch mixed-use costs

Some costs may be part business and part private.

Examples include a mobile phone, home internet, motor vehicle costs, or travel.

Do not claim all GST just because the bill is in your name. Use a fair business percentage and keep notes.

Small notes now can help if questions come later.

Keep proof in one place

A clean BAS file should include:

• tax invoices
• receipts
• bank records
• loan or finance documents
• payroll reports
• notes for mixed-use costs
• reports from your accounting software

This does not need to be fancy. It just needs to be easy to follow.

A simple BAS check before lodging

Before you lodge, ask three questions.

1. Does the GST on sales look right for the type of income we earned?
2. Do the largest GST credits have invoices behind them?
3. Are any refund claims easy to explain from the clinic records?

If you cannot answer these questions, pause and fix the records first.

The goal is not to be scared of GST refunds. The goal is to make sure they are right.

Source: ATO, “GST refund fraud attempts”.