Investigation into the ACT Revenue Office’s collection of historical debts

What we looked at

We investigated the ACT Revenue Office’s (ACTRO) practices in raising and collecting historical land tax debts, some dating as far back as 17 years, in response to multiple complaints highlighting administrative delays, unclear processes, and emotional and financial stress caused to taxpayers. We considered concerns about how the ACTRO communicated with affected individuals, whether the ACTRO acted fairly, and how it handled objections and penalties.

What we found

• There is no legal time limit for the ACTRO to raise land tax debts, even when records are more than 5 years old.
• ACTRO’s communication was often difficult to understand, making it hard for people to comply or object.
• Penalties and interest were sometimes imposed without sufficient consideration of individual circumstances.
• ACTRO’s internal processes lacked clarity and consistency, especially in relation to setting payment due dates and waiving interest.

Our recommendations

We made 4 public recommendations, all of which were accepted:

• 2 recommendations to improve policies, practices and procedures.
• One recommendation to improve communication.
• One recommendation to improve service delivery.

Lessons for all agencies

• Clear and compassionate communication by government agencies when collecting old debts reduces the stress on affected individuals.
• Clear procedural guidance and training for staff is essential to ensure fairness in determining penalties and interest before issuing assessments.
• Automated systems that generate assessment outcomes for large groups of people must be matched with sufficient resources to manage objections in a fair and timely manner.
• Agencies should pause, or reconsider, interest accrual during ongoing reviews, especially when delays are caused by the responsible agency.