Cuts at ATO are crippling business

THE federal opposition says cutbacks at the Australian Taxation Office have undermined the agency’s ability to do its job properly.

A joint investigation by Fairfax and the ABC has found a series of errors and actions by the ATO which led to small businesses and individuals being financially crippled.

Labor leader Bill Shorten said ATO staff were being asked to do more with less and whistleblowers were to be commended for identifying “scandalous” problems.

“I have no doubt the cutbacks at the ATO have undermined the ability to do its job properly,” Mr Shorten told reporters in Perth yesterday.

“This is an issue we’ll investigate when we return to parliament.”

Council of Small Business chief Peter Strong said in 95 per cent of cases the ATO provided an “excellent service” to small business people in difficulty.

“That will be small solace to those people who are victims of poor management practices that escaped normal scrutiny and quality control or were part of unacceptable ‘normal practices’,” Mr Strong said.

He said the Australian Small Business and Family Enterprise Ombudsman must be involved before key decisions are made, such as before bankruptcy procedures, before garnishees are issued and prior to any action that can bring “stress and unmanageable demands” onto a small business

THAT WILL BE SMALL SOLACE TO THOSE PEOPLE WHO ARE VICTIMS OF POOR MANAGEMENT PRACTICES THAT ESCAPED NORMAL SCRUTINY AND QUALITY CONTROL OR WERE PART OF UNACCEPTABLE ‘NORMAL PRACTICES’ PETER STRONG

person. The ombudsman should also be involved in the process of removing ABNs from businesses.

As well, an independent body must determine compensation for business people that have been wronged or suffer monetary and personal losses through unfair processes.

Mr Strong’s organisation will soon hold a forum to discuss a better definition of “contractor”, which is the cause of many problems involving the ATO.