iscoverThe Tax Office is seeking feedback on its approach to taxpayer relief provisions.
ATO opens door to feedback on taxpayer relief provisions
05 September 2025
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7 minute read
The ATO has revealed it is looking for feedback on its approach to remission of interest and failure to lodge penalties, lodgement and payment deferrals, as well as payment plans.
The regulator noted taxpayers were required to meet their lodgment and payment obligations on time and that interest and penalties were applied to compensate the government and the community for late payments of tax.
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In addition to this, there were some circumstances where the ATO was able to exercise discretion to remit penalties and interest, defer lodgement or payment, or agree to payment arrangements.
The “refreshed approach” being taken by the ATO was set to be focused on the principles of fairness, conditionality, context, engagement and inclusions.
Sonia Corsini, ATO assistant commissioner, said the reason behind the ATO looking to refresh its approach was to ensure that settings were clear, consistent and aligned to the legislative intent.
“As the first step, we have developed five draft principles to clarify our position and support taxpayers and their representatives to understand how the ATO will make decisions into the future,” she said.
“These principles will help shape our practice statements and guidance materials, which we will consult on as our next step later in the year. They are not a checklist or a replacement for out policies. Instead, they guide how we make decisions and what you can expect us to consider.”
It was added that the review aimed to achieve a framework that was fair and supported those genuinely in need, while also respecting the contribution of those who paid their tax on time.
Corsini said that ATO received hundreds of thousands of requests for relief from penalties and interest every year and received over 125,000 requests from taxpayers and registered tax agents to remit GIC in the 2024-25 financial year – with 76 per cent of those granted.
The consultation would be open from 4 September to 2 October.
“We know there is room for improvement in our processes, workflows and how we explain decisions, which is why we’re seeking feedback to help us identify opportunities to improve our policies, as well as how we operate,” she said.
“We aim to make decisions fairly and consistently, to help keep the tax system strong and trustworthy.”
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