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Tax complaints almost triple in just two years

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Cite

Wright, S. (2026, October 26). Tax complaints almost triple in just two years. The Sydney Morning Herald. https://www.smh.com.au/politics/federal/tax-complaints-almost-triple-in-just-two-years-20261027-p618t9.html?ref=rss&utm_medium=rss&utm_source=rss_feed

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The Sydney Morning Herald · collected 2026-10-26 · by Shane Wright

Quick Summary

Tax complaints to Australia's Tax Ombudsman have surged by 74% in the last year, with a total of 2376 complaints received between April and September, up from 1362 in the same period last year. This marks an 80% increase since 2024 levels. The majority of these complaints stem from debt collection issues and penalties imposed by the Australian Tax Office (ATO), particularly affecting individuals under financial strain and small businesses struggling to meet tax obligations.
Written by AI on 2026-10-27, from this article's own text only (the story summary below draws on all the coverage).

AI analysis

Story summary

The Tax Ombudsman Ruth Owen reported a 74% increase in complaints against the Australian Taxation Office (ATO) from April to September, with 2376 complaints compared to 1362 for the same period last year. This surge is part of a broader trend, as complaints have almost tripled since 2024. The primary issues involve debt collection and payments to taxpayers, each accounting for 19% of complaints. One notable case involved a woman with paraplegia who faced an $160,000 tax debt; after the ombudsman's investigation found the ATO failed to consider her health and financial situation, the debt was waived. The report highlights growing financial distress among Australians due to the ATO’s enforcement actions on outstanding tax bills and penalties.

Written for “Tax Complaints Increase” on 2026-11-04, grounded in this article and the 0 other(s) covering the same event.

Story

📰 Tax Complaints Increase
Politics · 1 article(s) covering the same event.

Compared with similar articles

This article reads leans left and hedges 4% of its claims. Each row says how that neighbour differs.
Daily Mail
⚖️ Leans left Hedges 5 of 18 claims Outlet record 69/100
“The articles discuss different aspects of tax-related issues but describe distinct events: one focuses on council tax arrears, while the other reports on complaints to a tax office watchdog.”
How this article was measured signals, leaning charts, publisher record, byline, topics and claims

Signals How these are calculated →

Claims extracted
23
sentences that state something as happening or true
Uncertain
4%
1 of 23 hedged ("reportedly", "may", "according to")
Leaning
Leans left
of the writing, not the subject · beta estimate
Publisher signals
61/100
The Sydney Morning Herald's corrections and hedging, across everything collected from it. Not a measure of accuracy.
Outlets on this story
1
Politics
Same framing elsewhere
1
articles that frame the event the way this one does
Analyzed 2026-10-27 · how these are computed

How this is being covered How these are calculated →

Article leaning vs. publisher reliability
Source leaning vs. consistency

Publisher

The Sydney Morning Herald · 6070 article(s) · 15 correction(s) detected
Running correction rate · 15 correction(s)

Who wrote this

Shane Wright
24 article(s) here · 0 carrying a prediction
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Also by Shane Wright
Homes losing $9000 a month as RBA mulls another rate hike
2026-11-01 · The Sydney Morning Herald
Nothing else under this byline is closely related to this article, so these are simply their most recent.
All 24 articles by Shane Wright →

Topics

ATO Australians CreditorWatch Owen

Subjects

ATO ORG · 8× Owen PERSON · 3× Australians NORP · 1× CreditorWatch ORG · 1× Inside Politics ORG · 1× Ruth Owen PERSON · 1×

Narrative

“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.” Of the issues raised with the ombudsman, debt collection and payments to taxpayers accounted for 19 per cent each.
framing: assertive · carried by 1 article(s) · first seen 2026-10-27
2026-10-27 · The Sydney Morning Herald
Tax complaints almost triple in just two years · assertive framing

Claims (23 extracted, 1 hedged)

Complaints to the tax office watchdog have soared by 74 per cent over the past year as ordinary workers and small businesses struggle with the ATO’s crackdown on outstanding tax bills and penalties. asserted
workers → soar → bills
Tax Ombudsman Ruth Owen, in a report released today, said there had been sharp increases in grievances from taxpayers over the financial hardship caused by the ATO’s calculation of debts and its actions to recover outstanding payments. asserted
Owen → release → payments
In the period between April and September, the ombudsman received 2376 complaints, compared to 1362 for the same period last year. asserted
ombudsman → receive → period
In one case noted by Owen, a woman left with paraplegia after an accident was caught in a dispute with the ATO over an outstanding $160,000 tax debt. asserted
woman → note → debt
After an ombudsman investigation which found the tax office had failed to take into account the woman’s dire health and financial circumstances, the debt was waived. asserted
debt → find → health
According to Owen, it was clear many taxpayers were under pressure which was exacerbated by the tax office’s actions. uncertain
which → accord → actions
“We continue to see an unprecedented demand for our services. asserted
We → continue → services
Our latest complaint data shows more people are struggling due to the ATO’s debt collection activity or interest charges,” she said. asserted
she → show → activity
“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.” Of the issues raised with the ombudsman, debt collection and payments to taxpayers accounted for 19 per cent each. asserted
collection → face → cent
Another 18 per cent related to penalties including the interest penalties on outstanding tax. asserted
cent → relate → tax
Unpaid superannuation was one of the fastest growing areas of concern with an 8 per cent lift on 2025 levels. asserted
superannuation → grow → levels
Super accounted for 56 per cent of all payment complaints, while another 37 per cent related to the status of tax refunds. asserted
cent → account → refunds
In a sign of the economic pressure on taxpayers, the number of complaints from people wanting to be released from a tax debt because of serious financial hardship climbed 5 per cent on last year. asserted
number → want → year
There was also a sharp increase in the proportion of complaints about how tax debts had been calculated and in re-raising debts that had previously not been pursued by the ATO. asserted
that → be → ATO
There was a 9 per cent drop in the number of complaints where the ombudsman confirmed the ATO’s actions were reasonable and a 6 percentage point lift in cases where concerns about the tax office’s communications had been raised. asserted
concerns → be → communications
More than 80 per cent of complaints came from individuals, which included people operating as a business. asserted
which → come → business
While 12 per cent of complaints were from organisations, small businesses accounted for 29 per cent of the ombudsman’s complex cases. asserted
businesses → account → cases
Last week, credit bureau CreditorWatch noted a surge in the number of businesses falling behind on their payments to the ATO. asserted
CreditorWatch → note → ATO
Tax debt defaults reached more than 37,500 in September, a 20.7 per cent jump over the year. asserted
defaults → reach → year
Owen said the increase in complaints was being partly driven by the financial pressure on individuals and businesses. asserted
increase → say → individuals
“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. asserted
people → see → moment
But they’re still trying to do the right thing and engage with the tax system.” Cut through the noise of federal politics with news, views and expert analysis. asserted
they → try → news
Subscribers can sign up to our weekly Inside Politics newsletter. asserted
Subscribers → sign → newsletter
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