Give the ATO more money, says The Tax Institute
The Tax Institute warns inadequate ATO funding and poor consultation create uncertainty and inefficiencies.
Tom Ravlic
MAR 20, 2025
A leading tax association is calling for the Australian Taxation Office to receive more funding to do a better job administering the system.
The Tax Institute’s head of tax and legal, Julie Abdalla, said the ATO needs sufficient permanent funding to improve the experience of tax practitioners and taxpayers who deal with the tax system.
Abdalla’s call for greater funding for the revenue collection agency comes before Treasurer Jim Chalmers delivers a pre-election budget and Senate estimates, during which politicians are expected to quiz the ATO and other agencies on funding and resourcing issues.
She said that there are several areas of concern to TTI, including the ATO’s ability to deal with announced but unenacted measures. This can create administrative problems if parliaments fail to pass laws that have significant tax consequences, she said.
“An increase in permanent funding would provide the Treasury with the resources required to respond to evolving economic and stakeholder circumstances and would better enable the ATO to implement and provide more timely guidance on new measures,” Abdalla said.
“[Measures] that linger for years are bad for the system, creating uncertainty and fostering inefficiencies.
“As a matter of good system maintenance, the government should commit to progressing or abandoning each [announced but unenacted measure] in this budget as part of a holistic review of the tax and superannuation systems.”
Abdalla also highlighted the evergreen concern among stakeholder groups that new laws impacting tax agents and taxpayers need to be the subject of proper consultation by Treasury, the tax office and other agencies to avoid unintended outcomes.
She said legislation passed in November 2023 that forced a new breach reporting regime on tax agents that was introduced as an amendment to a government bill by Greens Senator Barbara Pocock.
Pocock’s amendment was not accompanied by an explanatory memorandum as it was not properly explored with stakeholders before it was passed by the Senate.
“Public consultation should be undertaken for all significant changes to the law. Poor tax law design and a lack of consultation often leads to poor or unintended outcomes for everyone involved,” Abdalla said.
“Any amendments to the law must be considered holistically and be based on sound and considered policy.”
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About the author
Tom Ravlic is a journalist and author with a deep expertise in accounting, corporate governance and regulatory affairs. He has worked as an accounting academic, policy adviser for one of Australia’s three major accounting bodies, and consulted on the development of accounting curriculum for universities and professional associations.
