Centrelink 'hounding' Australians - Tax complaints almost triple in just two years
Complaints against the ATO have surged 180 per cent in two years as the Tax Ombudsman warns mounting interest charges are making tax debts ‘impossible to pay back’.
By Jason Morrison
The Taxation Office’s aggressive push to rake in billions amid record government spending has sent complaints soaring, leaving struggling businesses and households facing the “impossible task” of repaying mounting tax debts.
The Tax Ombudsman has raised concerns about the taxman’s hardline debt collection tactics, warning that mounting interest charges and interest rates topping 11.5 per cent, are pushing households and small businesses to the brink.
Complaints about the ATO have soared 180 per cent in two years, including a 74 per cent jump in the past 12 months, with 2376 grievances lodged since the start of the year.
Tax Ombudsman Ruth Owen warned the increasingly hard line approach could not come at a worse time.
“Many Australians are facing financial distress and we are seeing increased complaints about how the ATO is collecting tax debt owed and how interest is applied, often making the amount due impossible to pay back,” Ms Owen said.
Crucially, Ms Owen said most people seeking her help were not tax dodgers, but people genuinely trying to pay what they owed.
“You might be surprised to know that most people who complain to me are actually trying to pay their tax,” she said.
One Nation leader Pauline Hanson has accused Labor of using pressure tactics on businesses to bankroll Labor’s spending.
“Jim Chalmers has already brought businesses to their knees with his terrible budget. Now, under his watch, the ATO is shaking down struggling businesses because Labor can’t control its spending,” Senator Hanson said
“The Treasurer should get his own books in order instead of squeezing the life out of Australians trying to keep their businesses afloat.”
The Coalition has also accused the ATO of using automated debt collection systems to harass small businesses over alleged unpaid superannuation.
Deputy Liberal leader Jane Hume said threatening people in tough times is a low blow.
“Jim Chalmers has never had to run a small business and proves every day by the way he regulates and taxes them”, she said.
The Opposition plans to grill the government and tax office chiefs over the way it is chasing outstanding money.
This latest controversy follows a furious backlash over the ATO’s “tone deaf” plan to stop businesses paying tax bills by credit card.
The proposal threatened to make life harder for cash-strapped operators before the prime minister intervened to delay the ban following a Daily Telegraph campaign.
The taxman’s crackdown has coincided with a surge in corporate insolvencies, with more than 14,000 companies entering administration in the past financial year.
In July alone, the ATO launched 148 winding-up applications against businesses, accounting for almost a third of all applications.
