• Management of debt relief arrangements - Released 25 June 2013

    The objective of the audit was to assess the effectiveness of our administration of debt relief arrangements. The audit focused on whether:

    • information was readily available on debt relief options to people in serious hardship
    • those cases being considered for debt relief were effectively assessed
    • debt cases that were not pursued and re-raised or cancelled at a later date were being appropriately managed
    • debt relief outcomes were accurately reported.

    We encourage people to contact them as soon as practicable if they are experiencing difficulties in meeting their tax or superannuation obligations and will assist them to manage their obligations and prevent their debt from escalating.

    Debt relief arrangements may involve:

    • granting full or partial release from payment of a tax debt
    • deciding not to pursue the recovery of a tax debt
    • remitting general interest charges (GIC) and penalty interest accruing on a tax debt.

    The ANAO found that our management of debt relief arrangements is generally effective given the volume of transactions and the need to have regard to taxpayers’ personal circumstances. The two audit recommendations are aimed at:

    • improving assurance processes for the remission of GIC
    • improving the administration of debt relief arrangements by assessing the extent to which debt relief decisions have assisted taxpayers to meet their tax obligation in the longer term.
      Last modified: 26 Mar 2015QC 41294