Closed for Submissions - Tax Ombudsman

Review: ATO’s administration of Director Penalty Notices

Reviews and reports

Consultation closed. Report expected April 2027.

Director Penalty Notices (DPNs) are an important tool for the ATO to administer and collect certain company tax debts – GST, PAYGW and superannuation guarantee – directly from directors of companies. However, their use can have significant impacts on individual taxpayers, not all of whom are aware of their personal liabilities as a director.

In the 2024-25 financial year, the ATO issued more than 84,000 DPNs to directors of approximately 64,000 companies, a 136% increase over the prior financial year, as part of the strengthening of its debt collection functions.

Although DPNs are an important tool to ensure that directors who allow their companies to fall into debt are not able to escape liability, their use can also cause serious consequences. This is especially the case where directors have ceased their directorships or been unaware of the liabilities due to personal circumstances, such as illness, which may have prevented their active involvement in the management of the company.

An increasing area of concern is how coerced directorships are being used to perpetrate financial abuse, with DPN liabilities being a further impact on victim-survivors. Drawing on our body of complaints regarding DPNs as well as stakeholder feedback and the ATO’s ongoing work in relation to its vulnerability framework and debt strategy, this review would explore how the ATO uses and administers DPNs and any opportunities to improve its approach.

What we will examine

The review will examine whether before, during and after issuing a DPN:

The ATO’s communications to current and former directors provides adequate and timely information about their obligations, the director penalty, underlying tax debt and actions that they may take.

The ATO appropriately and consistently considers the circumstances of the affected directors, including during the recovery of that debt.

The ATO appropriately and consistently considers and responds to factors such as vulnerability, coercive directorship and financial abuse.

How to participate

Consultation closed on Tuesday, 29 September 2026.

We welcome feedback from current and former company directors, advisers, tax professionals and community organisations with DPN experiences.

There are several ways to participate.

Webinars: attend one of a series of webinars:

Thursday, 10 September 2026 12.30pm to 1.30pm (AEST)
Tuesday, 15 September 2026 12pm to 1pm (AEST)
Wednesday, 16 September 2026 2pm to 3pm (AEST)

We will also hold a webinar at the end of the review, to share our findings and recommendations to the ATO.

Survey – complete a short online survey (5 minutes).

Email us – [email protected] please write to us with your feedback, experiences or contributions.

Call us – contact (02) 8239 2108 or (02) 8239 2123 during business hours 9:00am – 5:00 pm AEST, Monday to Friday (excluding public holidays).

Write to us – post your written feedback to:

Tax Ombudsman
Director Penalty Notices Review
GPO Box 551
Sydney NSW 2001

Next steps

Consultation is now closed. Thank you for your valued input. We expect to publish our report by April 2027.

Terms of Reference

Media release

Review: ATO engagement with First Nations taxpayers

| Status: Consultation closed. Report due in February 2027.

All Australians are entitled to services and support that enable them to engage effectively and fairly with the tax system. However, we have heard that First Nations taxpayers face distinct and systemic barriers in doing so, including lower levels of digital access, financial literacy, access to key identity documents and an underlying lack of trust in government institutions.

According to the 2021 census, 812,728 people identified as Aboriginal and/or Torres Strait Islander, representing 3.2% of the Australian population. There are 167 indigenous languages used at home by 76,978 Aboriginal and Torres Strait Island people. Over one-third (34%) of the First Nations population live in outer regional or remote areas, where access to government services can be limited.

Supporting First Nations peoples to engage confidently and safely with the tax system is essential. As one of the biggest government organisations, with extensive reach to all Australians and businesses, the ATO needs to ensure its services meet the needs of First Nations taxpayers.

A whole of government approach supports this objective and the National Agreement on Closing the Gap reflects this expectation, requiring all government organisations to be culturally safe and responsive to the needs of Aboriginal and Torres Strait Islander people under Priority Reform 3.

Our review is not just about identifying barriers but also building on what is working and identifying practical solutions to improve how the ATO engages with First Nations taxpayers.

We have engaged Jindawayni, a 100% First Nations owned and run business, to assist us in undertaking this review and engaging participants in a culturally safe way. We are also working in partnership with Aboriginal and Torres Strait Island-led community organisations to support us to engage with First Nations taxpayers, businesses and their representatives, nationally.

We will also work collaboratively with the ATO to understand their current frameworks, policies, and initiatives relating to First Nations engagement and to identify opportunities for improving accessibility, responsiveness, and cultural safety across key service areas.

The review will lead to a set of recommendations for the ATO about practical improvements it could make to the way it works with First Nation taxpayers.

What will we examine?

We met with Aboriginal community organisations and peak bodies to inform the review terms of reference. Our review will examine the following topics.

How the ATO identifies and engages with:
- First Nations taxpayers, including individuals and businesses, to support understanding of and engagement in managing their tax and super obligations and entitlements; and
- third parties and external partners who support First Nations taxpayers to manage tax and super affairs, including access to appropriate assistance to reduce the risk and impact of predatory agent or business behaviour against First Nations taxpayers.
How ATO staff are supported, trained and resourced to appropriately manage interactions with First Nations taxpayers.
Whether the ATO has a robust process for identifying the needs of First Nations taxpayers and applying those insights to improve their services, communications and staff capability.

Terms of reference

How to participate – consultation closed 4 September 2026

During the consultation period, we heard from a broad range of stakeholders, including First Nations taxpayers, community-controlled organisations, businesses, professional and industry bodies and registered agents who represent First Nations people.

There were several ways to contribute to the review.

Yarning sessions Yarning sessions were held in 21 locations from May to August 2026.
Lismore Mon 4 May Brisbane Wed 6 May Gladstone Fri 8 May Shepparton Mon 18 May Bendigo Tues 19 May Melbourne Thurs 21 May Wagga Wagga Thurs 4 June Canberra Fri 5 June Sydney Tues 9 June Port Augusta Fri 26 June Ceduna Mon 29 June	Kalgoorlie Weds 1 July Port Headland Fri 3 July Perth Thurs 9 July Adelaide Fri 24 July Alice Springs Mon 27 July Katherine Weds 29 July Hobart Tues 18 August Launceston Wed 19 August Devonport Thurs 20 August Darwin Tues 25 August
We also consulted with stakeholders in additional locations as part of engagement activities led by other organisations or as opportunities arose. Whilst these locations are not listed above, insights and feedback collected will help to inform our final report and recommendations.
Survey A survey was also available to provide feedback for the review.
Submissions People could also email, write to or call us with their feedback. Submissions closed 5pm AEST Friday, 4 September 2026.
Webinar We will hold a webinar at the end of the review, to communicate our findings and recommendations.

Next steps?

Thank you to all those who contributed to our review – your valuable feedback and insights will help to inform our final report and recommendations to the ATO.

We expect to release our report in February 2027.

Media release – launch

Media release – Tax system must listen and adapt for First Nations communities