Michael Ray, 38, was sentenced to five years prison in Victoria's County Court on Monday after pleading guilty to conspiracy with the intention of dishonestly obtaining a gain from the Commonwealth.

His non-parole period was set down for three years.

The South Melbourne man was among three people identified as members of a Victorian-based fraud syndicate conspiring to collect more than $5 million through the GST system.

The scheme, which operated from November 2010 to December 2012, was concocted to steal personal information.

The identity details were used to create false entities and register them for GST, with business activity statements then lodged to claim the false refunds.

The refunded tax money was then funnelled into bank accounts that were created using stolen identities.

Ray shared in more than $2.5 million gleaned via the scheme, but detectives say its ultimate target was double that.

A joint investigation between the Australian Federal Police and Australian Taxation Office identified and charged Ray as one of the fraudsters in May 2017.

In total, more than $1.5 million was seized as police raided several Melbourne properties and safety deposit boxes.

ATO Assistant Commissioner Ian Read said tax crime impacts the entire Australian community.

"We know the majority of people are honest," he said in a statement on Monday.

"But there are a small percentage of people who deliberately abuse the tax and super system for their own financial benefit.

"Today's sentencing shows that these people will be held to account."

The recovered $1.5 million will be returned to Commonwealth coffers.

Mr Read said identity theft victims of the scheme had been provided support to get their affairs in order.

Australian Associated Press