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The introduction of client-agent linking, processing backlogs and declining services has resulted in a substantial drop in satisfaction with the ATO among tax professionals.
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Annual report reveals rapid decline in satisfaction with ATO
01 November 2024
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The average yearly satisfaction score for tax professionals has declined to 59.19 for 2023–24, according to the ATO's latest annual report for the 2023–24 financial year.
This represented a substantial decline from the previous 2022–23 year when the average score was 67.46.
The fourth quarter score was just 54, indicating a significant downward trend.
The annual report, released last week, noted that tax professional perceptions of the ATO had been in decline since early 2023.
The ATO said that the drivers for this trend were "multi-faceted" and often environmental.
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The report acknowledged that one of the major ATO-driven factors causing the decline in satisfaction was ATO processing backlogs.
"Delays continue to be the subject of issues raised by agents through various channels [with the delays in processing] impacting their ability to do their work effectively and efficiently for their clients," it said.
Tax professionals have also had to deal with the implementation of client-agent linking which has changed the process for onboarding business clients to a practice.
"We have been working in partnership with tax professionals and industry associations to resolve major irritants, improve in-system guidance and reduce errors in the linking process," it said.
The annual report also noted that ATO digital services and online services for agents were not meeting the expectations of tax professionals.
"The recent Tax Professionals Digital Experience Survey April 2024 found that 58 per cent of support officers, 42 per cent of BAS agents, and 38 per cent of tax practitioners believe the ATO’s digital services do not meet their expectations.
"Additionally, 65 per cent of tax practitioners needed help when using Online services for agents."
Practice mail within online services for agents was also listed as another issue for tax practitioners.
"The ATO has increased use of this channel, issuing communications to a whole-of-practice mailbox and not a specific agent or respondent. The function is also limited to 500 pieces of communication, with older messaging overwritten," it said.
"Chartered Accountants Australia and New Zealand also recently publicly stated substantial improvements should be made to Online services for agents."
The ATO also stressed that engagement, communication and consultation with the profession were at some of their highest levels for 2023–24, despite the reduction in satisfaction.
It also noted that tax practitioners had seen additional challenges within their operating environment that may have impacted the overall sentiment of the profession.
"[Tax professionals face] an increasingly challenging security environment (both cybersecurity and identity fraud) requiring changes to business processes and increased investment in risk mitigation," it said.
The ATO said tax professionals were also dealing with new and emerging challenges for clients arising out of the COVID-19 pandemic and the broader economic conditions such as the cost of living and increased debt positions.
Ongoing tax and superannuation law changes along with the regulatory changes driven by the PwC confidentiality matter were also creating challenges for practitioners.
Accounting firms were also dealing with labour market pressures and skills shortages with accounting graduates dropping over the past few years.
"The cumulative effect of these factors, and further changes expected over the next 12 months, magnify the pressures experienced by the tax profession and reduce the likelihood of their satisfaction with the ATO’s performance," the ATO said.
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