Complaints to Australia's tax watchdog have nearly tripled in two years, with the Tax Ombudsman reporting a 74 per cent surge in grievances over the past year alone as workers and small businesses struggle under the weight of the Australian Taxation Office's intensifying debt collection activity.

Tax Ombudsman Ruth Owen released figures today showing her office received 2,376 complaints between April and September 2026, compared with 1,362 for the same period last year. The current figure represents a 180 per cent increase on 2024 levels, a sharp escalation that Owen described as unprecedented demand for her office's services.

What Is Driving the Surge in Tax Complaints

Owen said the complaints data painted a clear picture of Australians under mounting financial pressure, made worse by the way the ATO is pursuing outstanding debts and applying interest charges.

"At a time when many Australians are facing financial distress, we are seeing increased complaints about how the ATO is collecting tax debt owed and how interest is applied to the debt, often making the amount due impossible to pay back," she said.

Of all issues raised with the ombudsman, debt collection and payments each accounted for 19 per cent of complaints. A further 18 per cent related to penalties, including interest charges applied to outstanding tax bills. Complaints about financial hardship relief, where taxpayers seek to be released from a debt due to serious circumstances, climbed 5 per cent on last year's figures.

There was also a notable rise in grievances about how tax debts had been calculated, as well as cases where the ATO was re-raising debts it had previously not pursued. At the same time, the proportion of cases where the ombudsman confirmed the ATO's actions were reasonable fell by 9 per cent, while complaints about poor communication from the tax office rose by 6 percentage points.

Unpaid Super and Delayed Refunds Among Fastest-Growing Concerns

Unpaid superannuation emerged as one of the fastest-growing areas of concern, rising 8 per cent compared with 2025 levels. Super-related issues accounted for 56 per cent of all payment complaints, while disputes over the status of tax refunds made up another 37 per cent of that category.

Owen said the patterns emerging from the complaints data pointed to people genuinely trying to meet their obligations but finding the system difficult to navigate under financial strain.

"The concentration of complaints we're seeing around tax debt, interest, missing superannuation and delayed refunds indicates people are doing it tough at the moment. But they're still trying to do the right thing and engage with the tax system," she said.

Small Businesses Disproportionately Affected

More than 80 per cent of complaints came from individuals, a category that includes sole traders and those operating as a business. Organisations accounted for 12 per cent of complaints, but small businesses made up 29 per cent of the ombudsman's most complex cases, suggesting the burden on smaller operators is particularly acute.

Broader data on business finances reinforces the picture. Tax debt defaults across the economy reached more than 37,500 in September, a jump of 20.7 per cent over the year, according to credit bureau figures, indicating a significant number of businesses are falling behind on payments to the ATO.

A Case That Illustrates the Stakes

Among the cases highlighted in Owen's report was that of a woman left with paraplegia following an accident, who found herself in dispute with the ATO over a $160,000 tax debt. An investigation by the ombudsman found the ATO had failed to adequately consider her health and financial circumstances. The debt was ultimately waived following the investigation.

Owen said the volume and nature of complaints made clear that the ATO's approach to debt recovery was having real consequences for vulnerable Australians and that her office would continue to scrutinise how the tax office balances enforcement with compassion.