Taxing times: more Australians complain about the ATO

Although most of these complaints are not approved for review, more and more Australians are complaining about the behavior of Australia’s tax collector.

Nearly 3,000 complaints were lodged with the Tax Ombudsman in the 10 months to 30 April; This was an increase of 127 percent compared to the same period in 2024/25.

Much of the increase was related to debt collection, penalties and tax debt interest and payments, the organization said in a report published Thursday.

“The complaints mostly relate to repayments being offset against existing debts, including debts that are not actively pursued.”

The ATO’s actions were reasonable in around two-thirds of debt collection-related cases, the agency said.

Tax Ombudsman Ruth Owen said the reason for the increased number of complaints was likely related to her office’s efforts to raise public awareness of its services and how it could help taxpayers achieve fairer outcomes.

“Our data helps us identify pain points in the tax system and identify issues that may require further investigation,” Ms Owen said.

In 31 percent of complaints about penalties and interest, the ombudsman office was able to obtain a reduction of tax debt or the elimination of interest for its clients.

In a statement to AAP, the ATO said it accepted the Tax Ombudsman’s complaint data and found that the ATO acted reasonably in most complaints.

“Complaints continue to represent a very small fraction of our interactions with taxpayers,” he said.

Of the approximately 19 million annual tax return filings, eight million searches and seven million action requests, only 0.1 percent result in a complaint.

“The ATO is committed to meeting its responsibility to collect taxes in accordance with the law so that the government can deliver services to the Australian community,” he said.

The ATO also said it had accepted all 10 recommendations in a recent report by the Tax Ombudsman into how it manages charges known as general interest charges, which are levied when taxes are not paid on time.