Australian Taxation Office

History

During the colonial period of the 1800s, a number of landholders had secured large tracts of arable land in Australia. After the states federated in 1901 to form the Commonwealth of Australia, the Commonwealth's main source of revenue was derived from indirect customs and the excise on duties on locally manufactured and imported goods. The Labor Andrew Fisher government was elected at the 1910 federal election and was concerned about large swathes of the country being under-utilised. The government introduced the first federal tax laws – the Bank Notes Tax Act 1910, the Land Tax Act 1910 and the Land Tax Assessment Act 1910 – to break up the large estates.

George McKay was appointed the first Commissioner of Land Taxation on 11 November 1910. The first tax return forms were issued on 10 January 1911 so that landholders could be assessed for their land tax liabilities. The tax was not popular, but a High Court of Australia challenge to the land tax found the law to be constitutional. The associated land valuations were contentious with more than 1,800 appeals and objections received by the middle of 1913.

In his first year, commissioner McKay had underneath him 105 tax officers, assessed approximately 15,000 land tax returns and collected £1.3 million to £1.4 million. Over the next decade, the government introduced several new taxes, mainly to cope with the massive cost of Australia's collecting revenue to fund participation in World War I. By the end of the decade, the department employed 1,565 people and collected approximately £10.45 million in taxes.

The ATO was the first Australian Government agency to introduce a virtual assistant using artificial intelligence on its website (see Artificial intelligence in government).

Commissioner

Rob Heferen was appointed Commissioner of Taxation and Registrar of the Australian Business Register on 1 March 2024.

The Australian Taxation Office has been headed by thirteen Commissioners of Taxation:

• George McKay – 1910–16
• Robert Ewing – 1917–39
• Lawrence Jackson – 1939–46
• Patrick McGovern – 1946–61
• John O'Sullivan – 1961–63
• Daniel Canavan – 1963–64
• Edward Cain – 1964–76
• William (Bill) O'Reilly – 1976–84
• Trevor Boucher – 1984–93
• Michael Carmody – 1993–2005
• Michael D'Ascenzo – 2005–12
• Chris Jordan – 2013–24
• Rob Heferen – 2024–present

Organisational structure

The Commissioner of Taxation is responsible for the general administration of the tax system and the ATO. The Commissioner of Taxation and three Second Commissioners of Taxation are each appointed for a term of seven years. The Commissioner and Second Commissioners are eligible for re-appointment after each term.

The overall strategic direction of the organisation is set by the ATO Executive Committee, which is composed of the Commissioner, three Second Commissioners, Chief Operating Officer, Chief Security Officer, and Chief Finance Officer. These roles are currently held by:

• Rob Heferen, Commissioner of Taxation and Registrar of the Australian Business Register
• Jeremy Hirschhorn, Second Commissioner
• Kirsten Fish, Second Commissioner
• David Allen, Second Commissioner
• Mark Sawade, Chief Information Officer and Chief Security Officer
• Jacqui Curtis, Chief Operating Officer
• Janine Bristow, Chief Finance Officer

The ATO's operations are managed through five groups which are led by members of the executive. These groups are:

• Compliance & Engagement Group, led by Second Commissioner Jeremy Hirschhorn.
• Law Design and Practice, led by Second Commissioner Kirsten Fish.
• Enterprise Solutions and Technology, led by Chief Information Officer and Chief Security Officer Mark Sawade.
• Enterprise Strategy and Corporate Operations, led by Chief Operating Officer Jacqui Curtis.
• Frontline Operations Group, led by Second Commissioner David Allen.

Groups are further divided into business and service lines (BSLs) which are responsible for the delivery of group priorities.

Performance

The Commissioner of Taxation is required to prepare and release an annual report each financial year. The annual report outlines the ATO's performance and achievements for each financial year.

Legislation

The scope of the ATO falls under various acts of legislations, including:

• Income Tax Assessment Act 1936
• Taxation Administration Act 1953
• Income Tax Assessment Act 1997

Controversies

Whistleblower

In 2017, Richard Boyle, an employee of the ATO based in Adelaide, South Australia, raised internal concerns about debt-collection practices in its Adelaide office. Boyle alleged that there was a culture within the ATO to increase the use of garnishee notices, a measure that allows the ATO to access funds in the bank accounts of taxpayers. After his concerns were dismissed, he aired the allegations on the ABC's Four Corners program in April 2018. The program revealed an email from a team leader that wrote "the last hour of power is upon us … that means you still have time to issue another five garnishees … right?".

Shortly before the Four Corners episode had aired, Boyle's house was raided by the Australian Federal Police who seized personal belongings, including his phone. He was charged with 66 offences, including using a listening device to monitor a private conversation, recording another person's tax file number and disclosing protected information. His case was the first test of the Public Interest Disclosure Act 2013. In July 2020, the Commonwealth reduced his charges down to 24 offences.

Boyle received support from journalists and politicians, including Rex Patrick, Jacqui Lambie, and David Pocock. Pocock and Lambie tabled the Whistleblower Protection Authority bill in parliament, aimed at protecting whistleblowers with legitimate concerns. On 28 August 2025, he was sentenced by Judge Liesl Kudelka in the District Court of South Australia, after he pleaded guilty to four criminal charges. No conviction was recorded, and he was sentenced to only a fine and a 12-month good behaviour bond.

Following the Four Corners episode, a review was conducted by the Inspector-General of Taxation, Ali Noroozi. In 2019, following the review, the ATO concluded that Boyle's claim was not widespread practice in its Adelaide office; however, there were incidents that highlighted the need for better staff training. Furthermore, it noted that the email sent from the team leader was only sent to 12 staff members and that "the message was intended ironically, and not literally". The ATO accepted all of the inspector-general's recommendations regarding internal communication, training procedures and contingency planning.

References

References

1. "Australian Taxation Office Annual Report 2024–25: Workforce management".
2. "Australian Taxation Office Annual Report 2024–25: Financial performance".
3. (26 May 2008). "Who are we?". Commonwealth of Australia.
4. Edmonds, Leigh. (2010). "A brief history of the Australian Taxation Office". Australian Taxation Office.
5. "In Brief {{!}} Artificial Intelligence in the Public Sector {{!}} IPAA (ACT Division)".
6. "Introducing the new Commissioner". Australian Taxation Office.
7. "Taxation Administration Act 1953". Commonwealth of Australia.
8. (25 November 2025). "Organisational chart".
9. (2013). "Commissioner of Taxation Annual report 20112-13". Australian Taxation Office.
10. "Commissioner of Taxation Annual report 2015–16: Performance Reporting".
11. (June 2021). "AN INVESTIGATION AND EXPLORATION OF UNDISPUTED TAX DEBTS IN AUSTRALIA".
12. "Australian Taxation Office Annual Report 2020-21: Revenue collection".
13. "Australian Taxation Office annual report 2023–24: Revenue collection".
14. "Australian Taxation Office annual report 2024–25: Revenue collection".
15. (9 April 2018). "'Mongrel bunch of bastards'". Australian Broadcasting Corporation.
16. Ryan, Peter. (16 May 2018). "Tax inspector-general to investigate ATO garnishee orders". ABC News.
17. Khadem, Nassim. (2019-03-12). "ATO debt collection review finds there was 'no cash grab', but staff need better training". ABC News.
18. Khadem, Nassim. (2019-03-05). "Blowing the whistle on the Australian Taxation Office could land this man in jail". ABC News.
19. (2020-07-03). "CDPP drops 42 charges against ATO whistleblower Richard Boyle, but he could still face life in prison". ABC News.
20. Maddison, Abe. (28 August 2025). "Tears as ATO whistleblower walks free".
21. Schriever, Jordanna. (28 August 2025). "Whistleblower Richard Boyle has 'suffered' for years after revealing heavy-handed ATO tactics".
22. (28 August 2025). "Whistleblower Richard Boyle avoids conviction and jail after revealing tax office's unethical behaviour".