Inspector-General of Taxation welcomes grant of additional powers

Last Wednesday, the government granted the Inspector-General of Taxation and Tax Ombudsman (IGTO) new powers in response to the Royal Commission into the Robodebt Scheme.

The new powers granted the IGTO the ability to access Tax Office records, data and information directly when required, as well as creating a duty for the ATO to assist with investigations by the IGTO.

Inspector-General of Taxation and Tax Ombudsman, Ruth Owen, said she welcomed the government’s decision to grant her new powers to aid in upholding the integrity of the tax system.

“This decision is a clear signal to taxpayers that we have strong checks and balances within the tax system in Australia. When something goes wrong, my agency can investigate independently and get to the bottom of problems quickly, fairly and without fear or favour,” Owen said.

“The Tax Commissioner and I signed a joint protocol at the end of last year that sets out how well the ATO and my office work together and most of the time this cooperative approach works very well, but Robodebt shows us all what happens when this type of arrangement breaks down.”

Both the Ombudsman Act 1976 and Inspector-General of Taxation Act 2003 were amended to implement the two recommendations of the Report of the Royal Commission into the Robodebt Scheme.

Before the bill was passed last Wednesday, 12 February, the bill was first introduced to the House of Representatives on 10 October 2024.

Owen said the bill was a necessary move; however, did not expect to use the powers regularly.

“I don’t expect to use these powers very frequently, but Australian taxpayers have a right to expect that there are consequences for any officials seeking to obstruct an Ombudsman investigation, especially when their money is at stake,” she said.

The newly granted powers would require all ATO and Tax Practitioners Board staff to co-operate with the Inspector-General at every stage of an investigation, from initial inquiries to the publication of findings and follow-ups on recommendations made.

According to the government, grounds for misconduct and possible disciplinary action could be claimed if there was a breach of the public service code of conduct.

Code breaches could include delaying or obstructing an investigation, withholding relevant information, or providing the wrong information.

Owen said the powers were necessary as investigations were not always straightforward and evidence needed may be in a format that was either unexpected or hard to define in a request for information.

“We try very hard to be clear but sometimes the one key record we need isn’t available. That could be because it doesn’t exist, which is fair, but it may be that it was just hard to find, or because someone chose to not share it with me,” Owen said.

“This new power means that I can access their records and information directly if I don’t think I’m getting the information I need or expect.”