The Commonwealth and Taxation Ombudsman, Professor John McMillan, today released a report of an investigation into the way in which the Australian Taxation Office (ATO) deals with complaints received from taxpayers.

The Ombudsman’s report assesses the Tax Office’s approach to complaint handling by both its business lines and specialist complaints unit, ATO Complaints. It follows up on recommendations made by the Ombudsman in an interim investigation into the Tax Office’s complaint handling system in 1999.

‘The Tax Office has developed a flexible and responsive complaint system,’ Professor McMillan said. ‘My office identified some areas where improvements could be made, and it is pleasing to note that the ATO has accepted my recommendations and is already implementing appropriate changes.’

The Ombudsman’s report makes six main recommendations, including that the ATO should develop:

• a strategy for implementing best practice in complaint handling, including elements of Alternative Dispute Resolution and key client management
• a consistent complaint recording system, capable of tracking complaints, as soon as practicable, and
• service standards in relation to complaint resolution, including provision for an extension of time where warranted.

The Tax Office has welcomed the Ombudsman’s report and has agreed with all six recommendations.

Tax Commissioner Michael Carmody said the Tax Office was committed to professional complaint handling.

‘Many of the Ombudsman’s recommendations build on programs already underway at the Tax Office to improve complaint handling,’ Mr Carmody said. ‘For example, we are already well advanced on the development of a single complaint recording system to support better complaint handling and analysis across the organisation. We’re also working to put in place service standards for complaint resolution that are flexible and we will keep the Ombudsman informed of our progress.’

Mr Carmody said the Tax Office was always looking at ways to better manage relationships with key clients and the Ombudsman’s report would help to build on what is already in place. ‘This report will help us to build confidence in the community of the systems we have in place to manage the handling and resolution of complaints,’ Mr Carmody said.

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Email – Media@ombudsman.gov.au

Date of release: 18 June 2003