When it comes to tax season, most Australians trust their accountant to get things right. But not all tax agents operate with transparency or integrity — and the recent exposé by A Current Affair shows just how badly things can go wrong.
A Melbourne-based firm, KPG Taxation, is under fire for allegedly forcing an immigrant employee to fund her own wages while delivering questionable tax services to clients. You can read the full investigation here.
This incident is a wake-up call: an unethical tax agent can cost you more than just your refund — it can cost your peace of mind, financial security, and even put you at risk of ATO penalties.
So how do you protect yourself?
Here’s what to look for:
1. No Transparency on Fees
Unethical tax agents often avoid discussing their pricing clearly. They might promise low fees upfront but then hit you with hidden charges like “admin fees”, “ATO communication fees”, or percentage-based deductions from your refund.
ATO Tip: Registered agents are required to clearly disclose all fees before you agree to their service.
Protect Yourself: Always ask for a written fee breakdown.
2. Rushed or Impersonal Service
If your accountant lodges your return within minutes — without understanding your situation — that’s a red flag. Ethical agents take time to ask questions, confirm your documents, and ensure you’re claiming only what you’re legally entitled to.
Why It Matters: Rushed lodgements often lead to missed deductions or worse — false claims that trigger an ATO audit.
3. No Evidence of Qualifications or Registration
Only registered tax agents with the Tax Practitioners Board (TPB) can legally prepare and lodge tax returns for a fee. Some unethical operators use vague or misleading credentials to appear legitimate.
ATO Tip: You can verify a tax agent’s registration via the TPB Register.
4. Mistreatment of Employees (Yes, It Affects You Too)
The KPG Taxation case highlights the deeper issues that come with unethical leadership — including exploitation of staff and students. When a workplace mistreats employees, it often cuts corners elsewhere too: rushed service, high turnover, untrained staff, and no client support.
What It Means for You: Your personal and financial data may not be handled securely or professionally.
5. No Aftercare or Follow-Up Support
Once they’ve lodged your return, do they disappear? Trustworthy firms offer support even after lodgement — whether it’s responding to ATO letters, correcting errors, or helping with future planning.
Good Agents Offer: Post-lodgement support, direct contact, and clarity at every step.
Why It Costs You More Than Just Money
- You may lose out on deductions you were eligible for
- You risk ATO penalties for incorrect claims
- Your identity or data could be at risk
- You may never know what you actually paid for
What to Look for in a Good Tax Agent
- Registered with the TPB
- Transparent, upfront pricing
- Takes time to understand your situation
- Shows refund estimate before you commit
- Ethical treatment of both clients and staff
- Offers post-lodgement support
Need a Second Opinion?
If you’re unsure about your last tax return — or the firm that lodged it — don’t take risks.
At Tax NextGen, our Chartered Accountants offer a free second opinion and refund estimate — with no pressure to commit.
Book your free 15-minute consultation today, www.taxnextgen.com.au
