Taxpayers complain, ATO explains

The article is relevant to members in Australia and was current at the time of publication.

Jenny Wong

Following a surge in taxpayer complaints, the Tax Ombudsman launched a review into GIC remission. 

This review will determine if Australian Taxation Office (ATO) communications clearly explain the criteria for remission and if decisions are uniform. Complainants perceived a tightening of ATO policy, a lack of transparency in decision-making and inconsistent outcomes across different ATO channels.  

ATO responds

New ATO guidance pages address the report’s primary complaint: that taxpayers often do not understand why their requests are denied.  

The guidance provides scenarios of where the ATO is likely to accept or deny a request. 

Acceptance scenarios include natural disasters, sudden ill health or domestic violence. Decline scenarios include general economic downturns or using tax funds to expand a business. 

Changes have also been made to the request process. Rather than handling requests via various mail channels, there are now specific remission application forms for penalties. These forms will guide taxpayers on the information needed for a decision.  

Tax and BAS agents will experience a more structured environment. Requests should be submitted via Practice mail in Online services for agents, with the correct form attached. 

Separate forms and separate mail messages will ensure that GIC, Shortfall Interest Charge (SIC) and Failure to Lodge (FTL) remissions are processed correctly. 

A dedicated team will now handle these requests.  

Work in progress

It is important to note that the ATO views these as interim changes while it completes its own broader review of taxpayer relief provisions. 

Taxpayers can expect continued improvements, coinciding with the expected delivery of the Tax Ombudsman’s final report in February 2026. 

Jenny Wong is CPA Australia’s tax lead.