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The Inspector-General of Taxation and Taxation Ombudsman expects the number of complaints relating to debts and tax will increase further amid rising financial pressures.
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Tax administration at ‘critical time’ as ATO intensifies debt collection: IGTO
22 November 2024
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In its Corporate Plan for 2025–2028, the Inspector-General of Taxation and Taxation Ombudsman (IGTO) has outlined some of the challenges in the current environment for tax administration and outlined its priorities.
In her first Corporate Plan as the newly appointed IGTO, Ruth Owen said it was "a critical time for the agency and for tax administration" with the ATO counting on ramping up its tax collection and cost-of-living pressures impacting many Australians.
"Tax and tax administration are never far from the headlines and at a time of significant cost of living pressures for many Australians, getting your tax right or receiving your tax refund is front of mind for many," Owen said.
Owen said it was critical that the public has trust in the tax system for it to work effectively.
"That is why it is particularly important at this time that I and my office have the capacity and capability to hold the ATO and the TPB to account, especially as the former ramps up its tax collection and debt management activity," she said.
The Corporate Plan noted that there are significant levels of financial stress within the community, including for small businesses.
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"Any individual or business in financial stress usually has some form of tax debt or is relying on the tax or superannuation systems to alleviate other financial pressures," the report said.
"Such conditions are driving increased complaints and requests to provide assurance to taxpayers that they are receiving their correct entitlements such as superannuation guarantee."
The IGTO also expected to see increased demand from the community in relation to resolving tax complaints concerning debt following the ATO's increased focus on tax collection.
"We need to stay agile to changing priorities and administrative practices of the ATO and focused on the risks of unintended consequences or maladministration on taxpayers," the IGTO said.
In its priorities for 2024–25 specifically, the IGTO said it would look to clear the backlog of outstanding taxpayer complaint cases and develop and implement improvements to streamline the complaint investigation process.
The IGTO set a target to finalise 99 per cent of the complaints that were received before 1 October 2024 by 30 June 2025.
It also aimed to finalise 85 per cent of the complaints received from 1 October 2024 within 100 days.
The Corporate Plan said the IGTO would also develop and adopt a new complaints operating model and refresh its guidelines for working with the ATO on complaints.
The IGTO also planned to increase transparency by designing and sharing structured insights and intelligence from complaints data and trends. It would also provide regular updates to ministers and officials.
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