Highlights

  • Complaints to the Tax Ombudsman reached 2,376 in six months, and 82% came from individuals acting without a tax agent.
  • The Ombudsman's help in speeding up ATO action rose from 4% to 14% of cases, showing escalation can pay off.
  • Taxpayers should complain to the ATO first, then escalate to the free, independent Tax Ombudsman if the issue stays unresolved.
  • Disputes over an assessment or penalty go through an objection, generally lodged within two years of the notice of assessment.

When the problem is the ATO itself, who does a taxpayer turn to? For most of the people asking, the answer has to be worked out alone. In the six months to September 2026, 82% of complaints to the Tax Ombudsman came from individuals without a tax agent, including sole traders, and total complaints were up 74% on a year earlier. Knowing which door to knock on, and in what order, can save time and money.

Who is complaining, and about what

The Tax Ombudsman received 2,376 complaints in the six months, up 74% on the same period in 2025. Small business made up 20% of complaints but 29% of the more complex investigated cases.

Within payment-related complaints, 56% were about superannuation and 37% about tax refunds. Complaints about ATO communication rose from 9% to 15%. Tax Ombudsman Ruth Owen said: "A lot of people tell me that they don't feel heard by the ATO."

The ATO says it received 1,358 complaints over the same period. The Ombudsman's larger figure includes cases resolved without ATO involvement, plus complaints about the Tax Practitioners Board and state taxes. A finding that the ATO acted reasonably in 63% of cases, down 9 points, has been reported, though the 63% is also cited for debt collection complaints specifically.

Step one: complain to the ATO

The usual first move is to raise the problem directly with the ATO, online through myGov or its complaints form, by phone or in writing. A short record of dates, staff names or reference numbers, receipt numbers and letters helps, as does a clear summary of the outcome sought.

A complaint is about service or process, such as delays, poor communication or how a debt is being handled. It is not the right tool for arguing about how much tax is owed.

Step two: escalate to the Tax Ombudsman

If the ATO does not fix the issue, the next stop is the Inspector-General of Taxation and Taxation Ombudsman, an independent and free office. It generally expects the ATO to have had the first chance to put things right.

Its record carries weight. In her June Senate Estimates statement, Owen said the ATO had agreed to 93% of her recommendations over two years, and urged it to use hardship relief powers "with empathy".

One limit matters as complaints about the law climb: the Ombudsman cannot change the law, which is a matter for Treasury and Parliament.

Free help without an agent

Free help is available through programs such as the National Tax Clinic network. A registered tax agent can also deal with the ATO on a client's behalf, and their registration can be checked on the Tax Practitioners Board register.

Step three: dispute the tax itself

When the real issue is an assessment, a penalty or certain other decisions, the formal route is usually an objection, lodged in writing with the grounds set out in full. The limit is generally two years from the notice of assessment for most individuals and small businesses, and four years for some with more complex affairs.

If the objection is disallowed, the taxpayer can generally seek external review at the Administrative Review Tribunal or appeal to the Federal Court, usually within 60 days of being notified. A complaint and an objection can run in parallel, since one concerns ATO behaviour and the other what the law requires.

Consider a hypothetical sole trader whose notice of assessment is dated 16 November 2026 and who believes it overstates her income by $8,000. She would generally need to object by 16 November 2028. If the objection is disallowed on 1 March 2027, she would generally have until 30 April 2027 to go to the Tribunal. In the 30% bracket, the $8,000 is worth $2,560 in tax and Medicare levy.