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ATO response to Tax Ombudsman’s review of ATO’s management of GIC remission

ATO response to the Tax Ombudsman's review into the ATO's management of GIC remission.

Published 2 March 2026

The Australian Taxation Office (ATO) notes the Tax Ombudsman’s (TO) reportExternal Link released today.

The ATO administers the tax system in accordance with the law. Under the law, general interest charge (GIC) applies when tax liabilities are not paid on time. GIC is designed to encourage timely payment and to ensure fairness by removing any competitive advantage for those who can, but choose not to, meet their tax obligations.

The TO report identifies opportunities to improve transparency, consistency and communication. The ATO agrees with all 10 of the TO’s recommendations and these are areas the ATO has already identified and implemented changes.

In March 2025, the ATO commenced a comprehensive review to refresh the administration of selected taxpayer relief provisions, including GIC remission. During this review the ATO implemented a number of administrative improvements, including:

  • enhanced website guidance to provide clearer information on how to request GIC remission, with practical examples of circumstances where remission is likely or unlikely to be approved
  • new GIC remission application forms that help taxpayers and their advisers provide the information and evidence needed for timely and well-informed decisions
  • a cap of $2,500 on the value of GIC remission that can be approved over the phone, reducing the risk of inconsistent decision making
  • the establishment of a dedicated review team to consider GIC remission requests over $2,500, strengthening the quality and consistency of decisions.

These changes are the first in a broader program of improvements planned throughout 2026.

The ATO acknowledges the report’s finding that the legal basis for the Commissioner to make a new decision was not always well understood or clearly explained. Online guidance has been updated to clarify these legal grounds. These legal grounds and ATO processes have not changed and the ATO continues to apply the law as it is written.

The volume of requests and approval rates vary across market segments. These differences may reflect varying levels of familiarity with the law and administrative processes. For example, fewer requests are received in the large market, with a slightly higher approval rate, which may reflect a stronger understanding of the requirements. The ATO remains committed to ensuring that all taxpayers have equitable access to request GIC remission, regardless of their access to professional advice.

The ATO balances its role in collecting revenue for the community with appropriate flexibility for taxpayers experiencing vulnerability. This approach supports trust and confidence in the tax system. The ATO’s recently released Vulnerability Framework reinforces this commitment and responds to a number of the Tax Ombudsman’s recommendations.

The ATO will continue to make sustainable improvements to the administration of taxpayer relief provisions, including GIC, and looks forward to publishing the outcomes of its broader review later in 2026.

Notes to journalists

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