Anthony Tripolino, Tripolino Accountants' senior accountant, told Accountants Daily there were multiple points he wanted to bring to light about the ATO’s service for agents – all of which were negative towards its approach.
“If I were to pinpoint when the ATO’s service began to decline, I’d say it was post-COVID,” he said.
“In the past, most issues could be resolved in a single phone call, or at worst, escalated once or twice to reach a resolution. Now, I’m finding that lodging a complaint is often the only way to get issues resolved.”
“This is unfortunate, as complaints should be a last resort. It also reinforces the IGTO’s findings that service standards have deteriorated to this extent.”
CPA Australia’s tax lead, Jenny Wong, said CPA members had long been expressing that the ATO’s phone line and digital support channels were not meeting the needs of the tax profession.
Wong added that registered agents played an essential role in maintaining the integrity of Australia’s tax system.
“They help taxpayers meet their obligations and pay their debts on time. When agents cannot access timely and accurate support from the ATO, the efficiency and effectiveness of the entire tax system suffers.”
“The Ombudsman’s findings closely align with CPA’s submission, which raised concerns about the wait times, inconsistent advice, call disconnections and inadequate support for client-agent linking.”
The Ombudsman’s review findings, as previously reported by Accountants Daily, noted the ATO rejected the recommendation to improve its phone line service for accuracy and effectiveness.
“CPA Australia is disappointed that the ATO has rejected the Tax Ombudsman’s recommendation to ensure registered agent phone calls are routed to experienced staff,” Wong said.
“A system that connects agents to the right expertise at the right time is essential to maintain trust, efficiency and confidence in the tax system. Improving the ATO’s engagement with agents will strengthen trust, reduce red tape and improve tax compliance outcomes for the community.”
“We urge the ATO to work closely with stakeholders to improve its operations for tax agents, which should start by ensuring the Tax Ombudsman's recommendations are implemented in full.”
What should the ATO do?
Joe Kaleb, Australianbiz and Make Accounting Great Again founder, added to the feedback and said it emphasised the point and argument he made with Accountants Daily previously, that the ATO needed to reinstall relationship managers.
According to Kaleb, the reintroduction of relationship managers would be in the ATO’s best interests as they delivered significant and invaluable benefits to tax agents.
Benefits of relationship managers noted by Kaleb mirrored current issues highlighted by the Ombudsman in her review, and included a stronger compliance culture, streamlined issue resolution, improved trust and collaboration, targeted education and support, early intervention in debt management as well as reduced administrative burdens.
“The ATO staff would require appropriate training and experience. To strengthen this capability, the ATO could consider engaging retired tax agents for some of these roles as they bring extensive practical experience and in-depth knowledge of ATO systems, particularly OSfA,” Kaleb said.
Within the Ombudsman’s review and comments around the phone line, Tripolino said he agreed with the findings and thoughts expressed.
“I personally believe there is a misalignment in the ATO’s approach – specifically, the expectation that calls regarding debt and payment arrangements must be handled via the tax agent portal,” he said.
“Debt pressure and the rising cost of living can cause significant stress, even for the savviest business owners or stoic individuals. Humanising the experience is crucial in these situations, as it helps build trust in the tax system.”
“The portal should be an option – not a mandate – for addressing such matters, as the human element is often lost in translation otherwise.”
Accounting bodies searching for ATO engagement
The Institute of Public Accountants (IPA) told Accountants Daily it also agreed with the Ombudsman’s review and said the ATO’s phone line was an essential service which was long overdue for improvement.
Letty Chen, IPA tax and super adviser, said practitioners often could not recover the costs of inefficiencies such as lengthy delays to resolution, declining service quality, lack of frontline staff expertise and inconsistencies in the service provided.
“It is of utmost importance that the ATO improves the service levels of the registered agent phone line as a matter of urgency. The phone line is not simply an alternative to using the ATO website or online services for agents – sometimes the practitioner has no choice but to use it,” she said.
“We caution against another period of slow action. While we are disappointed that the ATO will not adopt the recommendation to route the calls to experienced staff at first instance — instead, it will invest in workforce training and specialisation — we would like to see a much quicker and more efficient escalation from frontline call takers to technical experts as part of the suite of improvements.”
Chen added that the registered agent phone line couldn’t be examined in isolation and improvements to the system should encompass broader service offerings like the functionality of OSfA, practice mail effectiveness and the quality of other digital ATO services and resources.
Agents should be able to access a seamless service offering which offers clarity and not confusion, effectiveness and not frustration, and efficiency and not delays, Chen said.
“Tax agents play a critical role in Australia’s tax system, acting as the liaison between the ATP and taxpayers, and advising taxpayers on how to meet their obligations.”
“The value of the profession has been recognised by the Tax Ombudsman and the ATO in its response to the report. As a representative body, we want to see the ATO’s commitment to strengthening its engagement with the agent community manifest in meaningful action sooner rather than later.”
CA ANZ was also among the peak industry bodies with the same negative member feedback and experience of long wait times, ATO officers with a lack of skill and inconsistent or incorrect advice.
CA ANZ’s tax, super and financial services leader, Susan Franks, said these were significant issues that impacted the efficiency of Australia’s tax system and left members feeling frustrated and undervalued.
“The Tax Ombudsman’s review confirms our members’ concerns: most calls are handled by inexperienced contractors. Worryingly, the only real difference between the agent phone line and the public line is how quickly calls are answered, not the quality of support provided,” Franks said.
“The recommendations from the Tax Ombudsman are welcomed. It’s time for the ATO to invest in the expertise of its staff, its digital delivery processes and the transparency of its processes. Tax agents and their clients deserve nothing less.”