Tax complaints surge as Australians grapple with ATO debt, interest and penalties
Media release. Tuesday, 27 October 2026.
The Tax Ombudsman has released her latest complaints insights report showing
complaints increased sharply in the six months to September 2026, with 2,376 complaints
received – 74% more than in the same period last year and 180% above the same period
two years ago.
Tax Ombudsman Ruth Owen said her latest bi-annual insights report shone a light where
individuals and small businesses were experiencing friction in the tax system.
“We continue to see an unprecedented demand for our services. Our latest complaint data
shows more people are struggling due to the ATO’s debt collection activity or interest
charges or simply need to resolve delays to payments they are due,” Ms Owen said.
“At a time when many Australians are facing financial distress, we are seeing increased
complaints about how the ATO is collecting tax debt owed and how interest is applied to the
debt, often making the amount due impossible to pay back.”
Key statistics
- Debt collection and payment-related matters each accounted for 19% of complaint investigations from April to September 2026.
- Debt calculation, applications for release of debt due to hardship and director penalty
notices accounted for just over half of all debt related complaints. - In 63% of debt collection related complaints, we found the ATO acted reasonably, down
9% from the same period last year. - Penalties and interest complaints made up a further 18%, up from 13% in the same
period last year, and often overlapped with complaints about debt collection. - 77% of penalty and interest related complaints were about the general interest charge.
Of note, in 5% of cases, penalties or interest were reduced or remitted. This is down
17% on the same period last year, indicating the ATO’s tougher approach to debt
collection. - In payment matters, 56% of complaints were about superannuation and 37% related to
the status of tax refunds.
Ms Owen said behind every statistic was a person or small business asking for help – for
clarity on an ATO decision, access to money they are owed or in seeking to repay a debt.
“The concentration of complaints we’re seeing around tax debt, interest, missing
superannuation, and delayed refunds indicates people are doing it tough at the moment but
they’re still trying to do the right thing and engage with the tax system.”
The report also demonstrated the practical impact of the Tax Ombudsman’s independent
review. “In payment complaints, matters where we helped speed-up agency action rose
from 4% to 14%. This included faster probate processing, where bereaved families are
seeking to resolve outstanding tax matters,”Ms Owen said.
“Where the ATO has not taken action or that action has been delayed, our intervention can
deliver tangible outcomes such as expedited payments, decisions to remove or remit
interest charges, reduction of debt owed or a fresh look at the person’s circumstances.”
“Whilst we cannot always change an ATO decision, we can provide independent assurance
that the ATO acted reasonably and help people understand what happened on their
particular matter and why,” Ms Owen said.
The Tax Ombudsman said her bi-annual complaint insights reports provided an opportunity
to reflect on emerging pain points in the tax system and proactively recommend
improvements.
“We use our data to raise issues with the ATO and Tax Practitioners Board, to recommend
improvements to tax administration, improve decision-making and policy settings, and
advocate for a fairer tax system for the whole community,”Ms Owen said.
The Tax Ombudsman is currently undertaking a review into how the ATO administers Director
Penalty Notices (one of the main drivers of complaints about ATO debt collection actions.
Access the complaints insights report and snapshot on the Tax Ombudsman website:
Complaints snapshots – Tax Ombudsman
Media contact
Emma Collien. Director, Communications.
Phone: (02) 8239 2190. Email: [email protected]