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74% surge in Tax Ombudsman complaints indicative of increasingly complex tax system, says The Tax Institute

SYDNEY, Tuesday 27 October: The Tax Institute commends the Tax Ombudsman Ruth Owen on 

her office’s work to establish a fairer tax system in Australia, following the release of her latest 

complaints insights report in the six months to September 2026.

The report, released today, contains concerning findings, with demand for the Tax Ombudsman’s 

service increasing significantly: 74% more than the same period last year, with a total of 2, 376 

complaints. 

The unprecedented demand for the Tax Ombudsman’s services reflects the immense financial 

distress facing many Australians, with increased complaints regarding the ATO’s debt collection 

activities (19% of complaints), how interest is applied (18% of complaints), and delays regarding 

payment of amounts owed to taxpayers (19% of complaints).

Commenting on the report, Head of Tax and Legal at The Tax Institute, Julie Abdalla, said:

“We commend the important work the Tax Ombudsman is doing to help ensure Australia has an 

equitable tax system. The findings in today’s report relating to complaints regarding the ATO are 

concerning.

“This rise in complaints overall reflects issues such as lack of clarity in the ATO’s communications 

with taxpayers, more aggressive debt collection activity, and stricter application of interest 

charges. This is against the background of a series of complex new taxes that have been rushed 

through Parliament since the May Federal Budget. “This is all happening at a time when many 

Australians are facing greater financial distress due to increasing cost of living pressures.”

The Tax Institute recognises the importance of regularly reviewing individual complaints to identify 

emerging and systemic issues in the tax system. Reports like today’s help to ensure improvements 

can be made to tax administration, and also that policy makers are aware of how the 

administration of the tax system is currently impacting taxpayers. These findings should lead to a 

more accessible tax system for the whole community.

“We urge the ATO to listen to these findings, which represent the experiences of individual 

taxpayers and small businesses, who are struggling in the current economic climate. Australia’s 

tax system is complex, but by improving communication, debt-collection procedures, and the 

timeliness of payments to taxpayers, the ATO can play a pivotal role in ensuring our tax system is 

fair for all” says Ms Abdalla. 

ENDS

Tagged
  • 2026
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