Tax office accused of sidelining sector on ATO website

Posted on 25 Sep 2024

By Greg Thom, journalist, Institute of Community Directors Australia

The Australian Taxation Office (ATO) is under fire for making it harder for charities and not-for-profits to navigate its online help resource.

In a recently revealed change, all references to charities and NFPs were dropped from the audience segment section of the ATO's ‘website tips’ landing page.

The page now lists just three audience categories – ‘individuals and families’, ‘tax and super professionals’, and ‘business and organisations’.

Website users seeking information on charities and NFPs must now search under ‘business and organisations’, in an apparent demotion of the priority given to the sector.

Community Council for Australia CEO David Crosbie said the website changes were just the latest example of the sector not being taken seriously.

“Charities and NFPs employ more people than mining, or tourism, or agriculture, or most other industries, but we have no place in government, no home, no public servants focused on our sector and its needs, no department committed to identifying productivity gains that could be achieved in our sector and offer tangible benefits to communities across Australia,” he said.

“Sure, some departments dabble in this space and make the occasional investment or concession to some parts of our sector, but as the ATO have again demonstrated, charities and NFPs are invariably a subset of a subset, and no-one’s highest priority.”

ATO tips website — A screenshot of the revamped ATO website help landing page, which has removed references to charities and not-for-profits.

“The not-for-profit sector deserves to be recognised as the third sector along with government, business and the family by the ATO on its website.”

Professor Myles McGregor-Lowndes, Australian Centre for Philanthropy and Nonprofit Studies.

Mr Crosbie’s disappointment was echoed by Professor Myles McGregor-Lowndes of the Australian Centre for Philanthropy and Nonprofit Studies (ACPNS).

“The not-for-profit sector deserves to be recognised as the third sector along with government, business and the family by the ATO on its website,” he said.

“Not to do so may lead to alienation of an important group who should be able to easily access appropriate information about their tax responsibilities and concessions.”

Opposition Charities spokesperson Senator Dean Smith also slammed the ATO website change, for which he partly blamed the federal government.

“Under the Albanese Government, charities and not-for-profits have faced a constant string of poorly implemented reforms, costly inaction, and a lack of attention,” said Senator Smith.

“This careless change to the ATO’s help webpage adds insult to injury, showing just how little the government cares about the role charities and NFPs play in our nation at this crucial time.

“Charities and NFPs deserve far better recognition and support than what they have been receiving under this government.”

Opposition Charities spokesperson Senator Dean Smith.

An ATO spokesperson said An ATO spokesperson said the Tax Office had migrated its website to a new platform in January, which provided an opportunity to make content easier to find for all users.

They said the ATO consulted extensively with more than 6,000 website users and undertook a three-month trial before launching the new-look website.

The ATO spokesperson said feedback following user testing with more than 900 NFP participants found that including NFP information under the ‘Business and organisations’ tile made it easier for them to navigate the website and find the right information.

"The new tips on how to use the Tax Office website page is designed to support users (particularly those with lower digital literacy) to use our website and was published on 19 September,” said the spokesperson.

The website changes come as the ATO battles widespread frustration and criticism from the sector over the implementation of new rules requiring more than 155,000 NFPs to lodge self-review tax returns in order to claim tax benefits.

The rollout of the contentious new rules will now be subject to a Senate inquiry, instigated by Opposition charities spokesperson Senator Dean Smith.

The inquiry by the Senate Economics References Committee is due to report its findings by October 31.

The ATO said information on the new reporting requirements was featured on its website home page.

The home page was also linked to the Reporting requirements to self-assess income tax exemption web page from February 26 to June 13, 2024, as part of wider communications to raise awareness of the new requirements.

ATO assistant commissioner Jennifer Moltisanti has consistently defended the implementation strategy and communications associated with the NFP self-review changes and ruled out simplifying the new requirements for non-charitable NFPs.