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The Inspector-General of Taxation and Taxation Ombudsman will examine the ATO's identification and management of financial abuse in the tax system as her first review.
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IGTO launches review into financial abuse in the tax system
27 November 2024
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The terms of reference of the review into financial abuse in the tax system have now been released by the Inspector-General of Taxation and Taxation Ombudsman (IGTO), Ruth Owen.
The review, previously outlined in the IGTO's work plan, will examine the ATO's current systems, policies, and processes to identify and manage financial abuse and coercive control within the tax and superannuation systems.
The terms of reference for the review include:
• How the ATO detects or identifies instances of financial abuse within the tax or superannuation systems.
• What the ATO can do to best support or provide relief from debt for victim-survivors and hold perpetrators to account.
• How ATO systems may be used to identify perpetrators of financial abuse within the tax and superannuation systems and potentially third parties involved.
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• How far the ATO can go to minimise the broader impact of financial abuse within the tax system on other government services, such as social security or child support.
The IGTO said the terms of reference have been developed following extensive consultation with tax professionals, academic researchers, government bodies and community organisations who support and assist victim-survivors of financial abuse.
“I am pleased to commence this review as the first in my tenure as Inspector-General. Economic and financial abuse is a significant issue across Australia, on which we need concerted attention and effort," Owen said.
"There is a significant amount of work already underway across government, in industry and within the community to research and tackle financial abuse and coercive control.
"My goal is for this review to contribute to those broader, longer-term programs and to offer the ATO practical recommendations to address issues of financial abuse within the tax system, within existing legislation."
The IGTO said the key focus of the review would be on the ATO’s frontline services, the associated policies, procedures, training and guidance available to aid them in identifying and addressing cases of financial abuse within tax administration.
Owen said the review would examine administration including information-sharing powers within current legislation, noting other government reviews are considering future policy and legislation.
“The ATO’s frontline teams play an important role in identifying potential financial abuse, often being the first point of contact between a victim-survivor and the ATO," she said.
"It is imperative that there are appropriate policies, procedures and guidance to aid these officers during this critical contact point, including where they can refer the victim-survivor for further support."
Owen said that financial abuse can have "devastating impacts on individuals and families, leaving them with significant financial burdens, trauma and instability".
"Our consultation to date has generated a lot of interest and suggestions. We are very grateful for all the advice and input which has helped shape our finalised terms of reference."
The IGTO intends to publish actionable recommendations from the review in March 2025.
It is seeking initial input including data, analysis, research, case studies or points of view by 10 December 2024, with further planned consultation in late January and February 2025.
The IGTO will engage with a wide range of stakeholders, including tax professionals, government bodies and community organisations alongside public consultations.
Owen said contributions from individuals with lived experiences were particularly welcomed.
“I welcome feedback from across the community on this important review. I want to hear how victim-survivors have faced tax liabilities or debts caused by financial abuse and how they have sought help from the ATO," she said.
"I’m also interested to hear of any insights of best practices, and trauma-informed responses in other sectors to help identify opportunities to improve how financial abuse is identified and managed by the ATO."
Contributions can be made via email, phone, or post. All contributions will be treated confidentially in accordance with section 37 of the Inspector-General of Taxation Act 2003. Further details on the terms of reference and channels to contribute to the review are available on the IGTO website: www.igt.gov.au.
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