Source : Perth Now news
More Australians are complaining about the conduct of Australia’s tax collector, although most of those complaints aren’t upheld under review.
Nearly 3000 complaints were filed with the Tax Ombudsman in the 10 months to April 30, a 127 per cent rise from the same period in 2024/25.
Most of the increase related to debt collection, penalties, and tax debt interest and payments, the agency said in a report issued Thursday.
“Complaints are most often about refunds being offset against existing debts, including debts that had not been actively pursued.”
In about two-thirds of cases related to debt collection, the ATO’s actions were reasonable, the agency said.
Tax Ombudsman Ruth Owen said that part of the reason for the increased number of complaints likely related to her office’s efforts to raise community awareness of its service and how it could help taxpayers achieve fairer outcomes.
“Our data helps us to identify pain points in the tax system and determine matters that may warrant our further investigation,” Ms Owen said.
In 31 per cent of complaints about penalties and interest, the ombudsman’s office was able to achieve tax debt reductions or removal of interest for its customers.
The ATO told AAP in a statement that it acknowledged the Tax Ombudsman’s complaints data and noted that it found the ATO acted reasonably in most complaints.
“Complaints continue to represent a very small proportion of our interactions with taxpayers,” it said.
Of approximately 19 million tax return lodgements, eight million calls and seven million processing requests annually, just 0.1 per cent result in a complaint.
“The ATO is committed to fulfilling its responsibility to collect tax in accordance with the law so that the government can deliver services for the Australian community,” it said.
The ATO also said it had accepted all 10 recommendations from a recent report from the Tax Ombudsman on how it manages what is known as general interest charges, charges that are imposed when taxes are not paid on time.
