Australians are complaining about the tax office in record numbers, and the main source of friction is money owed. The Tax Ombudsman, Ruth Owen, said on Tuesday 27 October that her office received 2,376 complaints in the six months to September 2026, 74% more than in the same period last year and 180% more than two years earlier.

“We continue to see an unprecedented demand for our services,” Ms Owen said. “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.”

Where the pain is

The Ombudsman’s bi-annual complaints insights report, covering April to September, found:

  • Debt collection and payment-related matters each accounted for 19% of complaint investigations.
  • Debt calculations, applications for release from debt on hardship grounds, and director penalty notices made up just over half of all debt-related complaints.
  • Penalties and interest complaints rose to 18% of investigations, from 13% a year earlier, and 77% of them concerned the general interest charge.
  • In payment matters, 56% of complaints were about superannuation and 37% about the status of tax refunds.

A tougher tax office

Two figures point to a harder line from the ATO. The Ombudsman found the ATO had acted reasonably in 63% of debt collection complaints, down 9% on the same period last year. And penalties or interest were reduced or remitted in only 5% of penalty and interest cases, a figure the Ombudsman said was down 17% and indicated “the ATO’s tougher approach to debt collection.”

“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,” Ms Owen said.

She added that the concentration of complaints “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.”

What it means for business owners

For company directors, the most important line in the report may be the one about director penalty notices, which can make directors personally liable for certain unpaid company tax and super debts. The Ombudsman is currently reviewing how the ATO administers them, describing the notices as one of the main drivers of complaints about debt collection.

Two practical points stand out for business owners:

  • Engage with the ATO about a debt rather than leaving it to accumulate interest; the report shows the general interest charge is now the biggest single source of penalty and interest complaints.
  • If a dispute stalls, the Tax Ombudsman is free and independent. The report said the share of payment complaints where the Ombudsman helped speed up ATO action rose from 4% to 14%.

“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.

Source: Tax Ombudsman media release and complaints insights report, 27 October 2026. This article is general information only and is not tax advice.