National Tax Clinic program supporting taxpayers experiencing vulnerability
It is encouraging to see the ATO dedicating time and resources to improving the Australian tax system for taxpayers experiencing vulnerability. It is particularly noteworthy that in his first appearance at Senate Estimates, the Commissioner of Taxation, Rob Heferen, chose to refer explicitly to compassion, as follows:
'The community can rightly expect us to communicate and act with sensitivity, compassion and sound judgement … I'd like to emphasise we'll always have a pathway for those facing genuine hardship. There are a range of actions the ATO can take to support taxpayers affected by financial hardship or domestic violence, including deferrals, use of hardship provisions, withdrawing director penalty notices, and remitting general interest charges.'
The subsequent development and launch of the ATO Vulnerability FrameworkExternal Link in 2025 is a positive step that demonstrates the ATO’s commitment to a values-driven approach to tax administration and, if implemented well, will serve as an exemplar for inclusive tax administration globally.
The ATO defines vulnerability as:
'A person experiencing vulnerability is an individual who faces an increased risk of harm, exploitation, exclusion, or isolation. This can be due to various factors including, but not limited to, social, economic, environmental, physical or mental health conditions, disability, age, lack of access to essential services, mistreatment, abuse, or other personal circumstances.'
Importantly, the framework emphasises that vulnerability is not a label attached to a person, but rather a recognition that certain circumstances may create barriers to participation, compliance, or communication within the tax system.
Similarly, the National Tax Clinic program recognises these circumstances and is guided by equity and fairness, accessibility and inclusion, empathy and compassion, transparency and accountability, and continuous improvement, in offering tax support.
The National Tax Clinic program 2025 data highlights that Australian taxpayers continue to experience broad-ranging challenges which indicate ongoing vulnerabilities that contribute to their inability to manage their tax affairs. Reported data indicates that in 2025 most taxpayers assisted by the tax clinics experienced at least 2 of the vulnerability indicators identified (see Table 2, in The people behind the data).
Taxpayers experiencing financial hardship and/or low income continue to constitute the highest number of clients assisted by the National Tax Clinic program in 2025. Aboriginal and Torres Strait Islander peoples and taxpayers experiencing financial literacy challenges, who live in remote and regional areas and who are incarcerated represent a majority of the individuals and small businesses who engage the assistance of the clinics.
Vulnerability case study 1: curtailing the weaponisation of the tax system by perpetrators of intimate partner financial abuse
As highlighted in the National Tax Clinic program annual report 2024, federal policy currently unwittingly enables the weaponisation of the tax system by perpetrators of intimate partner financial abuse. Arising from perpetrators’ misuse of business structures, these ‘sexually transmitted tax debts’ have severe ramifications, leaving victim-survivors with debilitating financial burdens, reduced assets, insecure housing and prolonged economic instability even after leaving abusive relationships. Financial instability is a key factor driving individuals back into abusive relationships, so it is imperative that the tax system not be complicit in financial abuse.
2025 marked a milestone year for the National Tax Clinic program's research agenda – because we witnessed the translation of our ideas into impact. Our recommendations were directly adopted by government, giving rise to bullet point 1 of the Australian Government’s ‘Building Australia’s future: Labor’s commitment to women’ election promise in the 2025 Australian federal election ('A re-elected Labor government will take steps to: Prevent perpetrators from using the tax and corporate systems to create debts as a form of coercive control and make perpetrators accountable for these debts if they do.' April 2025) and receiving bipartisan support.
These outcomes are a direct result of the ongoing advocacy led by a cross-sector coalition of stakeholders, including the National Tax Clinic program, registered tax agents and pro bono legal practitioners, industry, community organisations, and interdisciplinary academic partners to co-create policy solutions and collaborating on strategic advocacy. Work is ongoing and we hope to see legislative, regulatory and administrative developments in this space in line with the recommendations contained in the landmark Final reportExternal Link of the Parliamentary Joint Committee’s financial abuse inquiry.
We are deeply grateful to our clients who so courageously shared their experiences of financial abuse. Their lived experience has shaped this work, and the findings and recommendations are a testament to their generosity, resilience, and advocacy for meaningful reform.
Client testimonial
'Post decision to separate from my marriage, I was faced with the unravelling realisation that, among other things, my husband had used me as a pawn in his self-serving, fraudulent commercial and personal financial strategy.
When attempts to address directly from my legal Pty. Ltd. Co-director standpoint, the psychological and emotional abuse escalated further; eventually morphing into me requiring police assistance.
The web of the financial abuse that entangled my commercial and personal taxation entities left me with no idea as to what I was actually dealing with, nor the extent, let alone how to handle it. All I kept being told was to seek personal and commercial legal advice and go find an accountant. At that time, I had no money, resources, financial information and little support. My tax situation sat in some unknown, murky void where, no matter who I asked, it seemed no one could help me.
The ATO then introduced me to the UNSW Tax Clinic, and one phone call changed everything for me.
UNSW Tax Clinic met me where I was in the cycle of abuse, and a time I was extremely vulnerable and very traumatised. Thankfully, I had the wonderful fortune of being assigned to work with Jono, who took it all on board, offering me nothing but support, compassion, patience, and a ‘we’ve got you’ approach. The relief I felt is difficult to explain… but even thinking back to it now makes me emotional.
UNSW quickly became an invaluable part of my support network. My tax situation was finally being understood and actioned. The engagement not only addressed and moved my immediate PAYG tax situation forward, it also paved the way for me to confidently address the bigger commercial and personal legalities with my now legal team.
The team at UNSW Tax Clinic provided me with so much more than completed tax returns. They gave me one of my first glimmers of hope, which then in turn empowered me to keep fighting for my future. One that is free of abuse.'
End of example
Vulnerability case study 2: supporting clients through systemic advocacy and tax debt relief
In June 2024, Liam (pseudonym) attended the Curtin University Tax Clinic seeking assistance with a significant taxation debt that had escalated during a period of incarceration.
On 1 July 2021, the ATO issued an amended income tax assessment relating to the illegal early access of superannuation benefits. The amendment resulted in a tax debt of $62,719.05, together with a shortfall interest charge (SIC) of $3,544.81. From 1 September 2021, additional general interest charges (GIC) accrued on the account, amounting to $18,827.63. The total outstanding debt reached $85,091.49.
However, Liam had been incarcerated from 24 February 2020 until February 2024. During this period, he was unaware of the amended assessment and unable to effectively manage his tax affairs or engage with the ATO regarding the accumulating debt and interest charges.
Following a detailed review of the matter, the tax clinic assisted Liam in lodging a request for remission of the GIC that accrued during his incarceration period, specifically seeking remission of $16,482.56 in GIC imposed between 2 August 2021 and 31 January 2024. The clinic argued that Liam’s circumstances significantly limited his capacity to manage his tax obligations and that the continued imposition of GIC during incarceration created an inequitable outcome.
The initial remission request was declined by the ATO who advised that, 'it is your responsibility to organise your affairs in such a manner that you can lodge and pay by the due date'. Recognising the broader fairness and access-to-justice implications of the matter, the Curtin University Tax Clinic escalated the case to the Inspector-General of Taxation and Taxation Ombudsman for independent review.
On 12 May 2026, following sustained advocacy and review, the ATO agreed to remit $16,482.56 in GIC that had accrued during Liam’s incarceration. The remission substantially reduced the financial burden placed upon the client and acknowledged the exceptional circumstances impacting his ability to manage his affairs during imprisonment.
As at 14 May 2026, Liam’s outstanding tax debt had reduced to $53,448.27. Importantly, since engaging with the tax clinic, Liam has remained actively engaged with the ATO and compliant under an ongoing payment arrangement.
This matter highlights the critical role of university tax clinics in supporting vulnerable taxpayers, advocating for equitable administrative outcomes, and assisting individuals to re-engage with the taxation system following significant life challenges. It also demonstrates the importance of independent review mechanisms in ensuring that administrative decisions appropriately consider vulnerability, access, and fairness within the tax system.
End of example
Vulnerability case study 3: empowering your future – financial capability program at Bandyup Women’s Prison
The Curtin University Tax Clinic continued delivery of the Empowering Your Future program at Bandyup Women’s Prison during 2025–26, supporting incarcerated women to build practical financial capability and taxation literacy skills to assist with reintegration and long-term financial wellbeing.
The program delivers culturally informed and trauma-aware workshops focused on key areas including budgeting, taxation, superannuation, debt awareness, banking, employment obligations, and financial decision-making. Sessions are designed to provide participants with practical knowledge and confidence to navigate financial systems both during incarceration and upon release into the community.
Importantly, the initiative also provides Curtin University students with valuable experiential learning opportunities through engagement in socially impactful, practice-based education under academic supervision. Students contribute to the development of educational resources and workshop activities while gaining insight into vulnerability, access to justice, and the broader social impact of financial exclusion.
The program reinforces the importance of ensuring that financial literacy education is accessible to all members of the community, including those within custodial settings. The tax clinic recognises that providing financial capability education within prisons is just as important as delivering programs in schools and broader community settings, particularly given the significant role financial literacy can play in supporting reintegration, reducing vulnerability, and building long-term independence.
Participant feedback highlighted the meaningful impact of the program, with one woman sharing that:
No one has ever explained money and tax to me in a way I could understand before. For the first time, I feel like I might be able to manage things differently when I get out.
Another participant reflected that:
The workshops made me realise I can still have goals and a future. It gave me confidence that I can start again.
The program reflects the Curtin University Tax Clinic’s ongoing commitment to supporting vulnerable communities through financial literacy education, early intervention, and community partnership initiatives that promote empowerment, inclusion, and improved social outcomes.
End of example
Vulnerability case study 4: improving financial literacy – community-embedded financial education on Tasmania's west coast
Financial literacy and tax literacy are not separate domains. Strengthening one strengthens the other, and the National Tax Clinic program’s growing engagement with community education reflects an understanding of this.
The intersection of financial literacy and tax compliance is not incidental. Across the National Tax Clinic program's network in 2025, 456 clients were identified as experiencing financial literacy challenges, a 54% year-on-year increase and one of the fastest-growing vulnerability indicators in the program's dataset. For these clients, the challenge is not merely that they have fallen behind. It is that they lack the foundational knowledge to understand why, or what to do about it.
The West Coast Financial Literacy Project, a University of Tasmania initiative co-designed with communities across the west coast, addresses this challenge directly. By embedding practical financial education into the places and institutions community members already trust, including schools, sporting clubs, libraries and local businesses, the project builds the kind of financial capability that makes engagement with the tax system possible and sustainable.
For young people aged from 8 to 19 years old and their families in Rosebery, Queenstown, Zeehan and Strahan, this is about more than understanding a tax return. It is about developing the confidence and knowledge to participate fully in economic life. The project's train-the-trainer model ensures that the capability it builds does not leave when the project does.
The alignment between this work and the National Tax Clinic program's mission is clear.
Clients who develop financial literacy are better equipped to meet their tax obligations, less likely to accumulate compliance gaps, and more able to engage productively with the clinic when they do need assistance.
The 2 initiatives reinforce each other, and the data from 2025 reflects the early returns of that reinforcement.
End of example