Login
iscover
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.
Newsletter
Tax administration at ‘critical time’ as ATO intensifies debt collection: IGTO
22 November 2024
•
12 minute read
You’re out of free articles for this month
To continue reading the rest of this article, please log in.
Create free account to get unlimited news articles and more!
In its Corporate Plan for the period of 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 to ramp 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," said Owen.
Owen said it was critical that the public has trust in the tax system in order 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 is significant levels of financial stress within the community, including for small businesses.
==
==
"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 expects to see increased demand from the community in relation to resolving tax complaints in relation to 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 compliant investigation process.
The IGTO has set a target to finalise 99 per cent of the complaints that were received before 1 October 2024 by 30 June 2025.
It also aims to finalise 85 per cent of the complaints received from 1 October 2024 within 100 days.
The Corporate Plan said the IGTO will also develop and adapt a new complaints operating model and refresh its guidelines for working with the ATO on complaints.
The IGTO also plans to increase transparency by designing and sharing structured insights and intelligence from complaints data and trends. It also will provide regular updates to Ministers and officials.
You are not authorised to post comments.
Comments will undergo moderation before they get published.