Selena: When serious hardship changes the picture

Following a life-changing accident in April 2023, Selena was left with paraplegia, reduced earning capacity and substantial disability-related expenses after an extended period in hospital. At the same time, they were dealing with an outstanding tax debt and had been unsuccessful in seeking debt release and remission of a general interest charge.

Selena approached the Tax Ombudsman because they believed the full impact of their circumstances had not been adequately considered. They were concerned about how their catastrophic injury, permanent disability, resulting financial hardship and broader history of tax compliance had been taken into account.

Our investigation considered whether the ATO had appropriately considered Selena’s request for release from their tax debt. We identified that action that should have been taken had not been taken. Following our investigation and enquiries with the ATO, Selena made a subsequent application for release from the tax debt.

On 4 August 2026, that application was approved and Selena’s entire outstanding tax debt of over $160,000 was released, achieving their preferred outcome and resolving the primary issues raised in their complaint.

Outcome: The taxpayer’s entire outstanding tax debt was released.