Australian Tax Ombudsman reports surge in ATO complaints

Complaints to the Australian Tax Ombudsman regarding the Australian Taxation Office (ATO) have increased significantly, rising 74 per cent over the previous year and 180 per cent compared to two years ago. In the six months leading to September, the agency received 2,376 complaints.

Tax Ombudsman Ruth Owen noted that the surge is driven by taxpayers struggling with debt collection activities, interest charges, and payment delays amidst rising cost-of-living pressures. Debt collection and taxpayer payments each accounted for 19 per cent of investigations, while 18 per cent of grievances related to penalties and interest.

One investigated case involved a woman with paraplegia whose $160,000 tax debt was eventually waived after the ombudsman found the ATO failed to consider her health and financial circumstances. While the ombudsman reported high volumes, an ATO spokesperson stated they received 1,358 complaints during the same period, noting that the ombudsman’s figures include matters resolved without ATO involvement or those involving state tax issues.