Outdated digital services costing tax agents time and money
Media release. Thursday, 20 August 2026.
The Tax Ombudsman has called on the ATO to improve its digital services for tax agents saying
they need more modern online tools to reduce red tape and better assist taxpayers.
Tax Ombudsman Ruth Owen said registered tax agents played a critical role in Australia’s tax
system, representing around 62% of individual taxpayers and 96% of organisations, and helping
millions of people to manage their tax and super obligations each year.
“Agents want modern digital services to help them complete routine tasks online and resolve
tax matters quickly without wasting their time and client’s money. There is also a win for the ATO
in increasing online transactions and reducing call volumes and manual workarounds.”
Online Services for Agents (OSfA) is the ATO’s secure digital platform for tax agents. Tax agents
rely on it to access client information, lodge forms, communicate with the ATO and manage
client obligations efficiently, but agent satisfaction has fallen sharply in recent years from 76%
in 2022 to 63% in 2026.
“Our review found there are limitations to what agents can complete online which creates
inefficiencies, frustrations and often long or multiple phone calls to the ATO,’’ Ms Owen said.
The review also found OSfA created additional administrative burden, with agents reporting the
need to request information the ATO already holds digitally, and ATO staff having to manually
prepare reports that should have been readily accessible online.
Ms Owen said this extra administrative burden affected the efficiency and productivity of tax
practices and also increased the cost of complying with the tax system.
“In this increasingly digital environment, the way registered agents administer tax and
superannuation obligations has fundamentally changed, and the systems supporting those
interactions must evolve as well.
“Digital services should make it easier for people to comply with the tax system, not add
another layer of administration. Time is money for the tax agent and they want to service their
clients as quickly and efficiently as possible.
“When agents can resolve matters online, taxpayers receive a faster service and the ATO can
focus its resources on work that genuinely requires staff intervention.
The Tax Ombudsman commenced this review in response to agent feedback on online services
in a 2025 Review of the Registered Agent Phone Line, flagging the need for improvements.
Ms Owen said her review also found almost 100 changes to OSfA awaiting action in the ATO’s
system improvement backlog, some of which had been on the list since before 2022. Practice
Mail – a web portal designed as a channel for agents to send requests to the ATO – was also
found to be no longer meeting the needs of agents.
The Tax Ombudsman said her review recommends practical, short-term improvements to
Practice Mail, while the ATO develops a more modern and secure online communication option
for agents.
“We know the ATO has already begun work to improve its online services, with a new working
group of agents and expanded capability planned in its future ICT strategy,” Ms Owen said.
“Enhancements to current digital tools will deliver benefits for the tax community, and the
millions of people they serve, and help to relieve pressure on ATO systems and staff.”
The Tax Ombudsman will monitor the ATO’s progress in responding to her 3 recommendations:
- Improve OSfA self-service so agents can access key information and complete more tasks
online. - Prioritise agent needs in ATO investment decision-making by giving OSfA improvements
appropriate weight and greater visibility. - Modernise ATO digital communication through secure two-way channels and practical
Practice Mail improvements.
The ATO has agreed all 3 recommendations. The Tax Ombudsman expects the ATO will consult
with the agent community on the details of implementation, particularly on the prioritisaton of
some of the practical system changes proposed.
Webinar – register to attend a webinar at 12:30pm (AEST) on Tuesday, 1 September 2026 to
hear review findings. Register for the webinar.
Read more about this review and the full report.
Media contact
Emma Collien. Director, Communications.
Phone 02 8239 2190
Email [email protected]