6 September 2026 • 3 minute read
CPA Australia has welcomed the ombudsman’s consultation on its review into the ATO’s use of director penalty notices and its draft workplan, and has stressed that its independent voice is crucial for the profession.
In response to theTax Ombudsman’s launch of its review into the ATO’s use of director penalty noticeslast week (1 September), CPA Australia has urged individuals who are impacted by the Tax Office’s director penalty notices to have their say.
“CPA Australia welcomes the opportunity for stakeholders to share their experiences to help ensure the administration of the DPN regime is fair, transparent and well understood,” tax lead Jenny Wong said.
“Director Penalty Notices are a significant integrity measure within the tax system, but they can also have serious consequences for directors and small businesses.”
The review follows the ombudsman’s2025 review into the identification and management of financial abuse within the tax system, which found uncovered abuses including the appointment of individuals as company directors without consent.
Tax Ombudsman Ruth Owen said that the review will consider how the ATO uses DPNs to respond to vulnerable individuals and aims to identify where improvements may be needed while continuing to protect public revenue and employee entitlements.
“The best tax systems are not just technically correct; they are easy to understand, easy to comply with and responsive when things go wrong. This review program presents an important opportunity to identify practical improvements that reduce costs, improve certainty and strengthen trust in the administration of Australia’s tax system,” Wong said.
Alongside the DPN review, the ombudsman called for community feedback on tax and super administration issues that need further attention over the next 12 months.
The 10 topics included potential reviews on ATO consultation, administration, its management of deceased estates, and compromised accounts.
“Our systemic reviews help to shine a light on system-wide tax and super administrationproblems and recommend practical improvements to benefit the whole community,” Tax Ombudsman Ruth Owen said.
The ombudsman’s draft workplan set out 10 possible tax administration issues for systemic review.
CPA Australia welcomed the ombudsman’s plan and its seeking community input on future system reviews.
“Independent scrutiny of tax administration is essential to maintaining confidence in the tax system and ensuring administrative processes remain fair, efficient and fit for purpose,” Wong said.
“We encourage tax practitioners, businesses and individual taxpayers to participate in the consultation and share their experiences of where tax administration creates unnecessary cost, complexity or delays.”
In light of growing concerns about compliance and a rise in red tape, and after the Board of Taxation was urged to simplify tax administrationas part of its red tape reduction review, CPA Australia agrees that compliance needs to be reduced.
“Reducing red tape delivers benefits not only for practitioners and businesses but also improves efficiency for government,” Wong said.
“Tax administration should support voluntary compliance, not create unnecessary administrative burdens.”
Identity security and consultation
Early last month, the ATO confirmed that some tax practitioners’ systems were compromised after thediscovery of malicious links embedded in inbound communications.
Last week, assuring that its systems remain secure, the ATO recommended that individuals use its online systems to protect clients’ identities and accounts.
“Identity fraud continues to place significant stress on taxpayers and practitioners alike,” Wong added.
“Where accounts are compromised, taxpayers need fast access to support and rapid resolution pathways. Delays can have significant financial and emotional consequences.”
Finally, Wong raised the difficulties tax practitioners face when working with deceased estates.
“Managing the tax affairs of a deceased person can be an extremely difficult time for families,” she said.
“CPA Australia members continue to report challenges navigating administrative requirements, obtaining information and finalising tax affairs in a timely manner.”
Previously, CPA Australia pointed to the importance of adequate consultation onthe second tranche of CGT and negative gearing legislation, and continues to call on the government to provide a longer consultation period for its proposed policies.
“Good consultation is not simply informing stakeholders about decisions that have already been made. It means engaging early, genuinely testing options and demonstrating how stakeholder feedback has influenced final decisions,” Wong said.
“In an environment of rapid legislative change and digital transformation, effective consultation is more important than ever.”
“Many CPA Australia members support the ATO’s commitment to consultation but often question whether feedback is incorporated early enough to influence outcomes.”
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Carlos Tse is a graduate journalist writing for Accountants Daily, HR Leader, Lawyers Weekly.
