CPA Australia welcomes ATO reforms on interest charge relief, calls for empathy at the centre of decisions

CPA Australia supports the Tax Ombudsman’s call for a fairer approach to general interest charge (GIC) remission, and the Australian Taxation Office’s acceptance of all recommendations to improve consistency, transparency and fairness in decision-making.

CPA Australia Tax Lead Jenny Wong said the findings align closely with concerns raised by members over several years, particularly around the treatment of taxpayers who are engaging with the system but experiencing genuine financial difficulty.

“We welcome the ATO’s acceptance of all recommendations and its ongoing work under the Redefining Concessions Project,” Ms Wong said.

“This project has the potential to deliver a more coherent, consistent and transparent framework for taxpayer relief.

“However, process reform alone is not enough. Empathy and proportionality must be defining features of how these concessions are applied in practice.”

Ms Wong said interest charges are intended to support compliance, not to exacerbate financial distress for individuals and small businesses who are making genuine efforts to meet their obligations.

“Taxpayers who engage early, provide information and enter into payment arrangements should feel the system is working with them – not against them,” Ms Wong said. 

“GIC remission decisions must take into account the lived experience of taxpayers, particularly those acting in good faith to engage with the ATO while confronting genuine financial hardship.”

CPA Australia has consistently raised concerns about inconsistent processing of remission requests, unclear communication and outcomes that do not adequately consider the circumstances that led to payment delays, including illness, natural disasters, fraud, or financial shocks beyond a taxpayer’s control.

These issues have become even more significant since GIC became non-deductible from 1 July 2025, substantially increasing the financial impact of ATO decisions on small businesses and individuals already under pressure.

CPA Australia said the report rightly highlights the importance of clearer guidance, better communication and more consistent decision making, including decision letters that properly explain outcomes, address the evidence provided and acknowledge personal circumstances.

“Applying the same evidentiary burden to small debts as to large or complex cases undermines fairness and creates unnecessary cost and stress,” Ms Wong said.

 “A proportionate approach would support sustainable compliance while reducing administrative inefficiency.

“The Redefining Concessions Project is an important step forward, but its success will ultimately be judged by whether taxpayers and advisers see a more human, predictable and transparent approach on the ground,” Ms Wong said.

CPA Australia said it looks forward to continuing to work constructively with the ATO as the reforms are implemented, including the post implementation review recommended by the Tax Ombudsman.

“Trust and voluntary compliance depend on fairness. A concessions framework that balances integrity with empathy – and supported by clear guidance, well trained decision makers and meaningful explanations – will strengthen confidence in the tax system and deliver better long term outcomes for both taxpayers and the ATO,” Ms Wong said. 

Media contact

Adrienne Biscontin
External Affairs Lead
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0429 009 691