A blog on issues affecting Australia's newsagents, media and small business generally. More ...

More on the ATO Tax Pack changes that are wasting time for newsagents

I am told that the ATO has around two million tax packs printed and ready for use and that they are not using newsagents to distribute these because only between 20% and 25% of those we distributed in the past were submitted as tax returns.

When challenged about the paltry $8 fee we have been paid to distribute 400 postcards, put up a sign and answer customer questions, I am told that this figure was set between the ATO and the magazine distributor, that it was allowed for in a contract between the two parties.

The decision to send out postcards and not the packs was about saving money. The result has been to push onto small business newsagents considerable cost, having us spend our money covering what should be an ATO funded service.

I’d be interested in knowing the fee the magazine distributor got for their part in the ATO tax pack mess.

Based on the questions I know are being asked in my own newsagencies it is clear there remains strong interest in easy taxpayer access to the tax packs. I’d suggest a metric of completed returns versus tax packs in circulation is not ideal since people used the tax packs for more than completing their return.

It is not too late for the ATO to change its mind and distribute the tax packs. My suggestion would be that they distribute a smaller allocation, say 50%. This would provide relief for taxpayers and newsagents. A smaller allocation could be part of a better publicised phase out of paper based tax returns.

The current situation is appalling. It shows how out of touch management at the ATO is when it comes to customer service.

Saving money for the ATO by pushing a significant customer service obligation on to newsagents without fair compensation is disgusting. I’d suggest that the ATO approach on this matter is a breach of their Taxpayers’ Charter a charter that includes:

It is fundamental to the system of self assessment that taxpayers must have sufficient confidence in the collecting authority—confidence that we will provide them with the information they need and that we will act fairly and treat taxpayers according to their individual circumstances. We believe we need to position ourselves in such a way that demonstrates to Australians that we are fair and reasonable and that we treat people according to their individual compliance behaviour.

24 likes
Newsagency management

Join the discussion

  1. wally

    Whilst I agree with the paltry figure offered I dont want valuable space taken up with any forms from government. I have simply given away the handout and if questioned further advise no one has the tax packs but suggest either go to a government post office or contact the tax people direct. Why would you want the hassle of tax packs. We are not information offices but businesses trying to make a profit. There is no profit in taxpacks. good riddance and the same applies to all those other things that we used to do for free for the government.

    6 likes

  2. Dean

    Maybe its worth making a complaint to Fairwork Australia as the wages paid for providing this service are less then the award rate

    0 likes

  3. carol

    Is,nt this just another case of the distribution model. Network paid to distribute so many and distributing far more than we need then we get the blame for them not being used. We needed about 1/2 what we received last year. Our clients ( customers ) are also having trouble getting the supplementary pack.

    0 likes

  4. rick

    in all honesty, not worth worrying about

    0 likes

  5. Brendan

    Wally, while understanding your frustration sending customers to Australia Post outlets will probably cause more angst with your customers because you have given them wrong information. We simply tell them to phone the ATO if they are prepared for the time it will probably take on hold. At least any angst is directed to the correct party and we have given appropriate advice. Whatever we do it will cost us time so it may as well be used to the customers benefit without being detrimental to the relationship between us and our customers. Unless ther are prepared to rent space from us at an appropriate commercial rate the ATO should use government outlets (Centre Link etc) for their distribution needs.

    6 likes

  6. peter stewart

    I think this year we all will spend a lot of time answering questions about this for no money.
    I don’t think we will see any increase in the $8 fee paid to us.
    next year less people will waste our time on this.

    1 likes

  7. Amanda

    I like Brendan’s suggestion for ATO forms to be handled through govt dept’s.

    It should be pursued.

    0 likes

  8. Mark Fletcher

    I’d like to know how much the ATO actually paid the distributor.

    1 likes

  9. Jenny

    I’d love to know how much they were paid!
    Do we declare our $8.00 as earnings when we do our tax returns?

    0 likes

  10. Ted

    Jenny, you better declare it as an expense

    0 likes

  11. Clive

    I think the ATO has negatively geared us.

    1 likes

  12. David

    Mark you make a good point about the taxpayer charter. Not that the ato will take any notice. Now they have met with the anf they can say the consulted when really all they have done is insult us. Keep up the good work.

    0 likes

  13. June

    I’m getting rid of all govt handout flyers as we are so sick of being insulted.
    Let the ATO deal with the flack.
    I even write the ATO phone no down for customers to “HELP” them to reach the
    ATO and voice their opinion.

    0 likes

  14. KMc

    I read somewhere that last year that they distributed 1,000,000 pieces and we only handed out 650,000. So, if they’re concerned about that level of wastage why didn’t they just distribute 650,000 this year. Or, is that too simple ?
    From an ATO perspective the current situation sounds like it was the result of brainstorming session amongst the interns.

    0 likes

Leave a Reply

Your email address will not be published. Required fields are marked *

Reload Image