iscoverFollowing the release of the Tax Ombudsman’s 2026 work plan, CPA Australia is supporting its approach to the practical challenges facing taxpayers, advisers and small businesses.
CPA backs Tax Ombudsman’s refreshed work plan
04 November 2025
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9 minute read
The professional accounting body is voicing its support for the Tax Ombudsman’s 2026 refreshed work plan following its submission to the draft version earlier this year in May.
CPA agreed and supported the refreshed work plan and its key focus areas of family trust elections, the ATO’s administration of deceased estates, the ATO’s use of director penalty notices, Payday Super readiness, ATO’s opportunities to use AI and the TPB’s management of significant breach reports.
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Jenny Wong, CPA Australia tax policy lead, said the Ombudsman’s work plan demonstrated a strong understanding of the practical and emerging challenges faced by taxpayers, advisers and small businesses in navigating Australia’s tax and regulatory systems.
Among the key areas highlighted by the Ombudsman, Wong noted the administration of family trust elections was a key concern for CPA Australia members and the broader community.
“Family trusts are a longstanding feature of Australia’s tax system, but the rules governing them are among the most complex,” she said.
“Errors in family trust elections can result in disproportionate tax liabilities, placing family businesses at risk of financial distress.”
According to the professional accounting body, feedback from its members indicated that aspects of the ATO’s administration, including the process for making valid elections, the availability, timeliness and clarity of guidance, and the evidentiary expectations during compliance reviews, contributed to “unnecessary uncertainty and compliance costs”.
The body proposed to the Ombudsman that it would be useful to consider the ATO’s recent “black letter” law approach, as with an unlimited period of review and limited options to correct errors, there appeared to be a change in approach that was concerning to CPA members.
Wong said CPA also supported a review into these complex areas as it could help identify opportunities to improve the ATO’s guidance, simplify administrative processes and ensure a more balanced and consistent compliance approach.
The body emphasised strong support regarding the review of the ATO’s administration of deceased estates as its members continued to report significant delays, communication gaps and administrative rigidity, particularly when probate was not required.
“These issues often leave families in distressing situations, with unresolved tax obligations and withheld refunds,” Wong said.
“Simple improvements, such as clearer guidance and a dedicated support channel for tax agents, would ease the compliance burden and provide much-needed compassion in sensitive circumstances.”
The body also supported a review into the use of director penalty notices, as feedback from members had revealed these notices were sometimes issued for very small debts without an adequate explanation or access to specialist support, which caused unnecessary stress for small business owners.
Following increased conversation and debate over Payday Super readiness, CPA commended this area's inclusion in the review, as it was set to be one of the most significant changes to the superannuation framework in decades.
Wong added that while legislative reform remained the preferred solution, administrative improvements would provide immediate relief.
“Our members have reported increased uncertainty and compliance costs due to the ATO’s current approach. A review by the Taxation Ombudsman is an important step toward restoring fairness and reducing the risk of unintended consequences.”
“The Taxation Ombudsman is demonstrating its commitment to improving the integrity and accessibility of Australia’s tax system, and for that it deserves credit and support.”
“We look forward to continuing our engagement with stakeholders to ensure the system works better for everyone.”
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