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Provide your feedback
We are seeking your feedback on the ATO’s approach to taxpayer deferrals, payment plans and penalty and interest remission.
To submit your feedback:
Purpose of consultation
This consultation is being undertaken to help the ATO refresh our approach to administering some forms of taxpayer relief. The specific provisions that we are focused on are:
We refer to these forms of relief as taxpayer concessions.
In March 2025 we started a comprehensive review of the settings and processes that explain how we manage these taxpayer concessions. The review aims to ensure that the concessions framework is sustainable and supports those genuinely in need.
About taxpayer concessions
The Australian tax system relies on high levels of voluntary compliance. We know that most people do the right thing and try to meet their tax obligations on time and in full.
Sometimes, people can’t meet their obligations, like lodging or paying on time. When this happens, interest and penalties are imposed to compensate the government and the community for tax which is due but not paid and address non-compliance behaviours.
In some circumstances, concessions like the ones listed above may be available. These concessions support taxpayers who are unable to meet their obligations where taxpayers are impacted by events or circumstances outside of their control. This includes those experiencing vulnerability, as outlined in our draft Vulnerability FrameworkThis link will download a file. When making decisions about concessions, we consider the taxpayer’s specific circumstances and the factors that have prevented compliance. We are also focused on balancing fairness and limiting unfair advantage for those who do not seek to meet their tax obligations through commercial funding arrangements where they are able to do so.
Every year the ATO provides a large number of these concessions to taxpayers. It is important that we ensure our concessions framework is sustainable and appropriate for taxpayers, their representatives and the ATO. We acknowledge the role tax professionals play in helping clients identify and access appropriate tax concessions. We appreciate their advocacy for fairness and transparency in concession decisions and welcome their continued feedback to shape policy and improve administrative processes.
More information and data on the ATO’s administration of concessions is available below.
Why we’re doing this review
We are committed to identifying opportunities to improve our policies, and the way we operate. We know there is room for improvement in our processes, workflows and how we explain decisions.
We are also taking the opportunity to respond to feedback we have already received from taxpayers and tax practitioners about concessions. Most of this feedback is about:
- how we make decisions about concessions
- how easy it is to find and understand the guidance
- a feeling that our approach has changed since the pandemic.
This work aims to ensure that our settings are clear, consistent, transparent and aligned to the legislative intent. We also want to make it easier for taxpayers and their representatives to identify when concessions might be available.
As part of the review, we have seen a need for guiding principles that explain how we approach concessions. These principles are intended as the first step to help clarify our position. They will help shape our practice statements and guidance, for taxpayers, their representatives and ATO staff. They are our proposed approach to concessions and what you can expect us to consider at a high level when making decisions. These principles are not a checklist or a replacement for our policies, and they do not restrict or override the discretion of the Commissioner. These principles are in draft and are not informing our current decisions.
Your feedback will help ensure the principles are fit for purpose and clearly outline how we should approach concessions.
Our next steps will be to consider feedback received, refine the principles as needed, and align our policies, processes and guidance material.
Refreshed approach to concessions
Taxpayers are required to meet their lodgment and payment obligations on time. Where payment is late, the law imposes interest, and where lodgment obligations are not met on time, penalties are imposed. In some circumstances, the Commissioner can remit penalties and interest, defer lodgment or payment, or agree to a payment plan.
These principles are intended to support consistent decision making within the law, and to help ATO staff understand the relevant factors in making concession decisions. The principles do not stop us from considering individual circumstances, including those impacting tax professionals. Each case will continue to be considered on its merit.
Sharing the draft principles with the community is a first step to more transparency about how the ATO approaches taxpayer concessions. As we move to the next stages of this review, the ATO is committed to being transparent about:
- the availability of concessions
- how to access concessions, and
- factors relevant to making a concession decision.
Principle 1: Fairness
In providing concessions, we will be fair to the taxpaying community who have lodged and paid on time by not advantaging those who haven’t.
We will be fair to taxpayers by taking into account their specific circumstances, including any vulnerability they are experiencing to ensure they are not disadvantaged.
Principle 2: Conditionality
Some concessions may come with conditions or expectations. This might mean taxpayers may need to show that they are making all efforts to lodge and pay on time before we provide a concession.
Principle 3: Context
We will take into account any decisions that have already been made by the ATO when considering concessions so we can support taxpayers to keep meeting their obligations. This means we may consider other concessions that have already been provided.
Principle 4: Engagement
When we are making decisions about concessions, taxpayers who proactively engage with us and who show they are willing to comply will be considered more favourably. This means there will be more flexibility if taxpayers come to us early when they think they might have trouble lodging or paying.
Principle 5: Exclusions
Taxpayers who knowingly and deliberately avoid their obligations may not have access to concessions. This means that when taxpayers do the wrong thing or attempt to gain an unfair advantage, may not be able to benefit from concessions that are available to those who do the right thing.
Consultation questions
We invite you to provide your written response to the consultation questions. You can choose to respond to any or all of the questions.
- Is there anything in the principles that you find confusing or unclear?
- What impact do you see these principles having on you and/or your clients?
- Is there anything missing from the principles that you think should be included?
- What other guidance (in addition to updating our existing policies, processes and guidance material) would you need in order to understand the principles?
- Are there any opportunities you see to improve the way the ATO operates in relation to taxpayer concessions?
- Do you have any other feedback or suggestions before we finalise the principles?
Every year the ATO provides a significant number of concessions to taxpayers, including interest and penalty remission, deferrals or payment plans. It is important that we ensure our concessions framework is sustainable and appropriate.
Data tables
The data below helps explain the extent to which these taxpayer concessions are currently used. Please note these values are rounded.
Penalty and interest remission
Penalties and interest remitted in an income year may relate to amounts imposed in a previous income year.
Table 1: Total value of General Interest Charges (GIC) imposed and remitted
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–
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2023–24
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2024–25
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Total GIC imposed
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$9.2 billion
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$9.4 billion
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Total GIC remitted
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$2.1 billion
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$2.6 billion
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Note: The ATO also reports interest remission figures in our Annual Report as part of the financial statements. These figures exclude interest that is imposed and remitted on the same day.
You can see more information on the General Interest Charge and the circumstances in which we consider remission on our website.
Table 2: Total value of Shortfall Interest Charges (SIC) imposed and remitted
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–
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2023–24
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2024–25
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Total SIC imposed
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$1.8 billion
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$1.2 billion
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Total SIC remitted
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$833 million
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$1.0 billion
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Note: The ATO also reports interest remission figures in our Annual Report as part of the financial statements. These figures exclude interest that is imposed and remitted on the same day.
You can see more information on the Shortfall Interest Charge and the circumstances in which we consider remission on our website.
Table 3: Total value of Failure to Lodge (FTL) penalties imposed and remitted
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–
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2023–24
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2024–25
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Total value of FTL penalties imposed
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$583 million
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$935 million
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Total value of FTL penalties remitted
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$228 million
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$170 million
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You can see more information on Failure to Lodge penalties and the circumstances in which we consider remission on our website.
Table 4: Payment plans
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–
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2023–24
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2024–25
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Payment plans created
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1.1 million
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1.3 million
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You can see more information on Payment plans on our website.
Lodgment and payment deferrals
There are number of channels through which taxpayers may be able to access deferrals. For example, the lodgment program is a collective deferral that exercises the Commissioner’s discretion to defer the time a form is due. It allows 38,000 active tax practitioners, representing over 14.5 million entities to manage their workload by progressively lodging client obligations over a 12-month period.
We may also provide deferrals for other reasons, for example in response to natural disasters to support people who may need more time to lodge or pay.
You can see more information about Lodgment deferrals and Payment deferrals on our website.
What happens next?
After the consultation closes, we will consider the feedback and make any required changes to the principles. We will then use the principles to inform changes to our policies and procedures. We will share more information about these changes later in the year, including further consultation on practice statements and public guidance.
Please note that as these principles are in draft, current decisions about concessions will be made using existing practice statements and procedures. Guidance found on our website will support you to understand the concessions you may be able to access, based on your individual circumstances.