In an era where transparency, integrity, and trust in public institutions are under increasing scrutiny, the role of oversight bodies such as the Inspector-General of Taxation and Taxation Ombudsman (IGTO) has never been more crucial. In this exclusive follow-up, the Institute of Financial Professionals Australia’s (IFPA) Ky Wilson engages once again with Ruth Owen, the Taxation Ombudsman, to delve into the office’s latest initiatives aimed at promoting fairness and accountability across the Australian tax system.
From long-standing concerns over General Interest Charge (GIC) remission to new powers of oversight, Ruth offers candid insights into the IGTO’s current priorities, the emerging risks facing taxpayers, and the tangible reforms her office is championing to better support individuals, small businesses, and the tax profession.
GIC Remission
Ky Wilson
In our last discussion you acknowledged inconsistencies in GIC remission decisions and flagged it as a top priority. What is the current status of your review into GIC remission practices? Will you publish concrete recommendations for improving transparency-such as standardised decision-making criteria, checklists, or a public guide on how remission decisions are made?
Ruth Owen
My new workplan has just been published and I can tell you that GIC remission is the top of the list. We will kick off the review in late July with a consultation on the key issues to address. The review scope includes the consistency and transparency of ATO decision making on GIC remission and whether decisions are fair and reasonable, with individual taxpayer circumstances being taken into account. We will also look at whether taxpayers or their representatives are given clear explanations on remission decisions as well as opportunities for the ATO to improve its administration and assessment of GIC remission alongside debt repayment arrangements. We expect to publish our report and recommendations in November 2025.
Online Security and Fraud Prevention: Addressing Emerging Threats
Ky Wilson
Recent reports have highlighted vulnerabilities in the ATO’s online systems, with instances of hackers exploiting weaknesses to claim fraudulent tax refunds. Given these concerns, what specific measures are being implemented to enhance the ATO’s online security protocols, and how is your office involved in overseeing these improvements?
Ruth Owen
Going into Tax Time, I know everyone is worried about the increasing risk of scams with TFNs being compromised. How the ATO manages compromised accounts is also on our review list. More and more Australians are having their personal data compromised and we will be looking at how the ATO manages accounts that have been compromised and how it supports those taxpayers who have been victim of a scam or fraud.
You might recall that my office published a report on tax identify fraud last year including key recommendations for the ATO on tightening its security of tax accounts, especially where fraudsters had sought to change the bank account details on a taxpayer’s account. We have been discussing the implementation of our recommendations with the ATO. They have a number of measures in place due for implementation for this Tax Time, including enabling taxpayers to set a higher security level on their account through MyID. They are also enhancing the capabilities in the ATO app including secure messaging.
My team will be holding the ATO to account for the implementation of the actions they have committed to and we will have an ongoing dialogue on security measures, given it is such an important issue for all taxpayers and an ongoing risk.
Debt Collection Practices Amid Financial Pressures
Ky Wilson
With the ATO intensifying debt collection efforts during a period of rising financial stress for many Australians, how is your office ensuring that debt recovery practices are conducted fairly and empathetically, particularly for small businesses and vulnerable taxpayers?
Ruth Owen
We are very aware of the number of Australians in financial distress. Tax debt is often a factor for many individuals or small businesses struggling with the cost of living and other pressures. We continue to work with the ATO to look at how their debt management and collection activities are being managed and that their approach is fair and reasonable. The review of GIC remission goes to a key aspect of this issue.
As a reminder, anyone can raise a complaint with the ATO if they believe it is not taking a fair or empathetic approach to their tax collection or repayment arrangements. If they are dissatisfied with the ATO’s response, they should bring their complaint to my office to investigate. This service is open to all taxpayers, including tax agents and accountants on behalf of their clients.
You will have noted that the ATO has opened a consultation on its Vulnerability Framework, and I’d encourage everyone to contribute to that consultation to help shape how the ATO will support taxpayers experiencing vulnerability in the future. Consultation paper – ATO Vulnerability Framework | Australian Taxation Office. The deadline is 18 July.
Enhancing Transparency in Tax Administration
Ky Wilson
In your recent publication, you emphasised the importance of transparency in tax administration. What steps are being taken to improve transparency in the ATO’s decisionmaking processes, and how can tax professionals and taxpayers be assured of consistent and fair treatment?
Ruth Owen
Yes, that’s right – transparency is one of our core principles of tax administration. The more transparency from the tax office, the more the community will trust that the system is working fairly. We will be encouraging the ATO to share more of its internal guidelines, where it is appropriate to do so. You will also see that my office will start publishing more data, which can contribute to greater transparency across the system. We will also be publishing where the Commissioner and I disagree, either on individual complaints or on systemic issues. This may be useful for the profession, the community or Parliament to see where our views differ
Improving ATO Communications
Ky Wilson
Feedback from tax professionals indicates ongoing issues with the clarity and effectiveness of ATO communications. What initiatives are underway to enhance the quality of ATO correspondence, and how is your office contributing to these efforts?
Ruth Owen
Our review of the ATO’s written communications is due for publication this month. We will be making some recommendations on what changes the ATO can make in its end-to-end process in designing and testing the bulk issue letters which can go to millions of taxpayers. The consultation we undertook highlighted how some of those letters are not written in a way that is easy for the taxpayer to understand. We also heard from some tax professionals who found some of them baffling! Let’s face it, many taxpayers are scared when they receive a letter from the tax office, so the letter needs to be written as simply as possible to help them understand what is required of them and by when.
Once our recommendations are published, we will follow up with the ATO on the implementation of all those which they have agreed. And we will publish details of those they don’t agree.
Leveraging New Oversight Powers
Ky Wilson
Following the government’s decision to grant your office additional powers to access ATO records directly, how do you plan to utilise these powers to strengthen oversight and ensure accountability within the tax system?
Ruth Owen
My team already has direct access to some of the ATO’s main systems and we have always had the power to require the ATO to provide requested information or data. These are used frequently and mostly work very well and very efficiently. These new powers are really a backstop to ensure that we can gain direct access to any information where we believe we have not had the full story or there is key evidence not being shared. I expect to use them only in exceptional cases, but as we know from the recent history of the public service, integrity cannot be guaranteed and that is why oversight organisations like mine are essential.