Five peak bodies in the financial counselling sector — Financial Counselling Australia, Financial Counsellors ACT, Financial Counsellors Association of Western Australia, Financial Counselling Victoria, and the South Australian Financial Counsellors Association (also covering the NT) — have made a joint submission to the Australian Taxation Office (ATO) on its proposed principles for taxpayer relief. The submission welcomes the ATO’s review but calls for a significant rework of the draft principles to ensure they are fair, accessible, and trauma-informed. It highlights that current administrative and legislative settings are producing avoidable harm, and that the ATO’s framing of fairness, conditionality, and engagement is out of step with community expectations and international best practice.

The submission recommends alternative principles that better reflect the realities of people experiencing vulnerability, including clearer definitions, more flexible and compassionate processes, and a presumption of good faith. It urges the ATO to adopt the Tax Ombudsman’s principles of good tax administration and to advocate for legislative reform to enable sustainable outcomes. Case studies included in the submission illustrate how rigid processes and poor communication can exacerbate hardship. The sector calls for improved transparency, consistency, and stronger partnerships with community organisations to ensure taxpayer relief reaches those who need it most.