Response to Tax Ombudsman’s 2025-26 work plan
CA ANZ calls for Taxation Ombudsman to prioritise review of the ATO’s remission of general interest charge, client agent linking, compromised accounts and Online Services for Agents
In brief
- Members are frustrated with ATO responsiveness which adversely affects their ability to assist taxpayers
- CA ANZ calls for the Taxation Ombudsman to review the top four areas that are causing members concern
- Addressing key systemic issues affecting tax practitioners improves the broader tax system
Chartered Accountants Australia and New Zealand (CA ANZ) has lodged a submission regarding the Taxation Ombudsman’s (TO) call for comments on the forward work plan for systemic reviews in 2025/26.
CA ANZ members have been experiencing significant issues regarding their interactions with the Australian Taxation Office (ATO). Tax practitioners lodge 62 per cent of individual and 96 per cent of non-individual tax returns so it is crucial that tax agents can interact efficiently and effectively with the ATO to ensure the smooth operation of the tax system.
To assist the Taxation Ombudsman to prioritise the potential review areas, CA ANZ conducted a member survey of more than 460 members. CA ANZ has heard that our members are most concerned about:
- Remission of General Interest Charge (GIC): Members have limited guidance, face unpredictable outcomes and receive unhelpful feedback on denied remission requests. Members want practical guidelines, consistent outcomes and useful feedback. With GIC becoming non-deductible from 1 July 2025, a review of the ATO’s approach is both timely and necessary.
- Client-Agent Linking (CAL) System: Members spend hours of unrecoverable administrative time assisting clients with the CAL process. As this burden is set to increase when CAL also extends to individuals, sole traders and existing clients, tax practitioners need a streamlined, consistent approach across regulatory frameworks.
- Management of Compromised Accounts: Members are concerned about protecting sensitive client data and client refunds. Tax practitioners continue to experience unresolved issues despite the last TO review on Tax Identity Fraud and the ATO response. A renewed focus on prevention and recovery is warranted.
- Online Services for Agents (OSfA): While members prefer using OSfA to deal with the ATO, they need enhancements such as improved access to client data, real-time status updates, and expanded communication features. Members value a system that allows them to self-serve effectively and efficiently.
CA ANZ has been discussing these issues with the ATO and the Taxation Ombudsman. It is pleasing that the Taxation Ombudsman has these issues, among others, in the list of potential reviews for 2025/26. CA ANZ looks forward to working with the Taxation Ombudsman and the ATO in resolving these issues.
