ATO Watchdog Brutally Slams Outdated Digital Systems for Agent
Synopsis
The Tax Ombudsman has slammed the ATO’s agent digital services, citing falling satisfaction, a growing improvement backlog, and outdated communication tools.
Key Highlights
- The Tax Ombudsman says the ATO’s Online Services for Agents (OSfA) is creating unnecessary administrative work.
- Agent satisfaction with OSfA has fallen from 76% in 2022 to 63% in 2026.
- Almost 100 requests for system improvements remain unresolved in the ATO’s backlog.
- The ATO has accepted the findings and says it will work on improving its digital services.
Report Highlights Growing Frustration Among Tax Agents
The Tax Ombudsman has raised concerns about the ATO’s digital services for registered tax agents. These agents handle tax matters for about 62% of individual taxpayers and 96% of non-individual taxpayers across Australia.
The review found several problems with OSfA, the ATO’s main online platform for agents. Satisfaction has fallen over the past four years, while agents say they often have to call the ATO to complete tasks that should be available online.
In some cases, agents also have to request information that the ATO already has. This means ATO staff need to manually put together reports instead of allowing agents to access the information through self-service tools.
Backlog Grows as Communication Tools Fall Behind
Nearly 100 OSfA-related improvements remain unresolved, with some requests dating back to before 2022. Smaller fixes often fail to move forward unless they are included in a larger ATO project.
Practice Mail is another source of frustration. The portal was designed mainly for individual requests rather than ongoing communication between agents and the ATO. As a result, many agents end up using the phone service instead, adding further pressure to already lengthy wait times.
Paper Forms Are Still Being Used
Some ATO processes continue to rely on manual paperwork. Agents can submit franking credit refund requests online for most taxpayers, but non-profit organisations still need to use a PDF form and submit it through Practice Mail.
The ATO had given this work a lower priority because demand was relatively low. The Ombudsman, however, argued that certain services should be available online regardless of how many people use them, particularly when taxpayers are seeking money they are entitled to receive.
A Wider Relationship Problem
The report suggests the issues go beyond outdated technology. Some tax agents feel that their work is not sufficiently valued and that the ATO does not fully appreciate the role they play in the tax system. Poor phone service and limited online functionality were identified as signs of this wider relationship problem.
ATO Responds
The ATO accepted the report’s findings and agreed with its recommendations. The tax office said it plans to improve self-service functions, make its prioritisation process more transparent and strengthen communication channels.
At the same time, the ATO said it must weigh these improvements against other priorities, including legal requirements, security concerns, service delivery and longer-term digital transformation projects.
Source: SmartCompany
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