Tax Ombudsman Review: ATO Service to Tax Agents

ByDavid Woo

On 16 October 2025, Tax Ombudsman Ruth Owen released a review into the Australian Taxation Office’s service delivery to registered tax agents, highlighting significant concerns about the deteriorating relationship between the ATO and the tax profession.

Key Findings

Declining Service Standards

The review found increasing dissatisfaction amongst tax agents regarding the ATO’s phone service over the past two years, with agents reporting:

  • Inconsistent advice from ATO officers
  • A lack of suitably skilled staff to address technical enquiries
  • A general sentiment of not being valued by the ATO

The Importance of Tax Agents

Tax agents play a critical role in Australia’s taxation system, representing 62% of individual taxpayers and 96% of other taxpayers. Evidence demonstrates that agents’ engagement with clients drives tax compliance and directly contributes to the ATO’s objectives of increasing voluntary compliance and closing the tax gap.

Systemic Issues Identified

  1. No Dedicated Specialist Team: Contrary to agents’ expectations, there is no dedicated team servicing the registered agent phone line. Whilst agents receive priority in call queues, their calls are directed to the same officers who handle general public enquiries.
  2. Inexperienced Staff: Most agents’ calls are routed to externally contracted call centre officers, with approximately half having less than 12 months’ experience with the ATO. These officers have minimal tax technical training and cannot reasonably address complex or technical matters.
  3. Online Service Deficiencies: Agents frequently call the ATO because they cannot complete necessary transactions through online channels. The only secure online correspondence channel (practice mail) is not fit for purpose and causes delays in fulfilling clients’ business requirements.

ATO Response

The ATO agreed to 13 of the Ombudsman’s 14 recommendations but rejected the proposal to route agents’ calls to more experienced staff. Instead, the ATO will focus on:

  • Investing in digital channels for registered agents
  • Improving training and escalation pathways
  • Creating dedicated teams for complex areas such as taxpayer relief

The Ombudsman expressed disappointment that the ATO has not accepted that its current phone service is inadequate, but welcomed the commitment to improving digital services, working more collaboratively with agents, and measuring agent satisfaction.

Historical Context

These issues are not new. The Australian National Audit Office identified similar problems in 2022, and an Australian Public Service Commission review in 2025 noted that the ATO’s relationship with tax intermediaries had eroded in recent years.

What This Means for You

As our client, you can be assured that we continue to advocate for improved service standards from the ATO. Whilst we navigate these current service challenges, we remain committed to providing you with timely, professional advice and representation in all your taxation matters.

For more information, visit TaxOmbudsman.gov.au

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