Revealed: How accountants feel about the ATO right now

Accountants Daily has published its inaugural ATO Sentiment Report, showcasing what accountants across the country think about the frequency, nature, and tone of contact from the Australian Taxation Office, both to and with clients, whom it is targeting, and how such contact is being received.

The report, produced in partnership with Accountancy Insurance, covers the first quarter of the 2026–27 financial year.

The headline findings from the report include:

• 87 per cent of accountants think that the ATO has become somewhat or significantly more aggressive in its enforcement and compliance approach.
• More than half deem the intensity of ATO activity as high.
• 7 in 10 accountants have clients who have experienced ATO contact for debt recovery.
• Clients in the construction and trades sectors were far and away most likely to be subject to ATO contact and activity.
• Nearly one in two accountants had more than 10 clients contacted by the ATO in the last quarter.

Survey respondents were also invited to provide free-text reflections on the ATO’s current approach, which by and large denote serious discontent with the regulator.

One respondent wrote: “The ATO has been conducting its activities on a ‘guilty until proven innocent’ basis, and been extremely aggressive and unprofessional when dealing with my clients, reducing many to tears.” It is, they said, “unacceptable”.

Another felt that the Tax Office’s approach is “making it harder for small businesses to do business”. They need, the respondent said, “to have a bit of leniency and understanding”.

Elsewhere, a practitioner said that “it seems that Tax Agents have progressed from being a partner to both the ATO and the client, to being viewed by the ATO as another adversary. We often see ourselves bypassed, so that our clients are contacted directly by the ATO, instead of us”.

This, they wrote, “causes undue stress to the client, and frustration for us, as we look incompetent because we aren’t on top of the communication”.

To download the report, click here.

To participate in the five-minute survey for the ATO Sentiment Report for Q2 FY27, click here.

Speaking about the research, managing editor of Accountants Daily and Accounting Times, Jerome Doraisamy, said: “While the responses provided, and sentiments expressed, capture a moment in time for the accounting profession, the results published in this report should be instructive for how the ATO can and should look to better work with practitioners on the ground.”

“2026 has been a difficult year for the profession, and perceptions such as those shared in this report should not be ignored,” he said.

“On behalf of Accountants Daily, thank you to all the practitioners nationwide for contributing to the inaugural ATO Sentiment Report.”

Accountancy Insurance said: “What makes these insights important is that they give a voice to what accounting firms are experiencing every day. The findings point to a compliance environment that is becoming increasingly demanding for both accountants and their clients.”

“For us, being part of this research is about listening to what firms are experiencing and helping share those insights more broadly, so accounting professionals can see how what they’re encountering compares with the experiences of others across the profession,” it said.

“We’ve really valued the opportunity to partner with Accountants Daily on this research.”

To download the report, click here.

To participate in the five-minute survey for the ATO Sentiment Report for Q2 FY27, click here.