Hospitality rort exposed: pretend caterer jailed after GST scam
A Rockhampton man has been jailed after using a fake catering venture to try to claw back Goods and Services Tax (GST) while on parole for drug offences.
The Supreme Court in Rockhampton heard that Kayne Anthony Richards, 38, pretended to run a catering business and lodged a flurry of business activity statements (BAS) in 2022, claiming more than half a million dollars in expenses and seeking GST refunds. Commonwealth prosecutor Georgia Kelly told the court Richards submitted 10 BAS between 11 April and 20 May 2022, all of them false and aimed at obtaining refunds. “He was not operating a business at the time,” Kelly said. “Some lodgements would have required him to have spent close to half a million dollars.”
After obtaining an Australian Business Number (ABN), Richards secured $35,687 from the first BAS. “That same day, he transferred $20,000 to another account, $1000 in cash was withdrawn and $2500 was transferred to another person,” Kelly said. A subsequent Australian Taxation Office (ATO) audit stopped further payouts, leaving $150,321 in refused refunds and a debt assessed against his account. The ATO has recovered $30,575.33 and the court ordered Richards to repay the outstanding $5,111.67.
Richards was already on probation and parole for drug matters when the tax offending occurred. Justice Graeme Crow said Richards arranged to supply 28 grams of meth for $5000 on 16 February 2024 to Jason Paul Barnham, allegedly a police target, with the arrangement detected via telecommunications. “It strikes me a bit unusual that they’d go and give (Richards) parole straight away given (his) instant return to drug offending,” he said.
Police searched Richards’ Kawana home 10 days later, finding 16.721 grams of substance containing 12.821 grams of pure meth. Justice Crow said the meth was in three bags under Richards’ arm. When asked for his phone pin, Richards refused to provide access. After being warned, he replied, “lock me up for it then”.
The court heard Richards, a long-term methamphetamine user, left school in Year 8, worked in concreting and plastering, and has an extensive criminal history — 84 convictions across 24 appearances since 2006, including a 2016 escape from lawful custody. He pleaded guilty to lodging a BAS with intent to dishonestly obtain a gain from the ATO, supplying a dangerous drug, and possessing more than two grams of a schedule one drug.
Justice Crow imposed four years’ imprisonment for the drug offences and a further 12 months for the ATO matter, declaring 561 days of presentence custody as time served with immediate parole eligibility. Mr Barnham faces 17 charges before the Rockhampton Magistrates Court and is remanded to 8 October; he has not entered pleas.
Jonathan Jackson, 23rd September 2025
