Australia: Tax Ombudsman seeks feedback on tax administration review priorities and Director Penalty Notices
The Tax Ombudsman is consulting on future systemic review priorities and has launched a review of the ATO's administration of Director Penalty Notices.
The Tax Ombudsman has invited feedback on how it should prioritize systemic reviews of tax administration issues over the next 12 months and has opened a review of the Australian Taxation Office's (ATO) administration of Director Penalty Notices (DPNs).
Consultation on both the proposed systemic review program and the DPN review closes on September 29, 2026.
Tax administration reviews
The Ombudsman's draft work plan identifies 10 possible systemic review topics, noting that it can undertake only four systemic reviews on key topics of interest each year. The proposed topics include:
- ATO administration of release from tax debts due to serious hardship
- Tax Practitioners Board (TPB) management of complaints and alleged breaches of the Tax Agent Services Act 2009
- ATO consultation arrangements
- ATO administration of early release of superannuation on compassionate grounds
- ATO management of deceased estates
- ATO management of compromised taxpayer accounts
- ATO administration of the first home super saver scheme
- ATO management of the test case litigation program
- ATO management of employee notifications of unpaid super
- ATO administration of the research and development tax incentive
Administration of DPNs
Separately, the Ombudsman has commenced a review of the ATO's administration of DPNs. The review will examine whether the ATO:
- Provides current and former directors with adequate and timely information regarding their obligations, director penalties, underlying tax debts, and available actions
- Appropriately and consistently considers the circumstances of affected directors during debt recovery processes
- Appropriately and consistently considers and responds to issues such as vulnerability, coercive directorship, and financial abuse
The Ombudsman noted that while DPNs are an important mechanism for collecting certain company tax debts from directors, they can have significant consequences for individual taxpayers, including directors who may not be aware of their personal liabilities.