Financial Counselling Australia (FCA) welcomes the Australian Taxation Office’s (ATO) new Vulnerability Framework as an important first step towards fairer treatment of people in financial difficulty but says the real test will be how it’s implemented.
“The ATO’s Vulnerability Framework is an important step towards a fairer and more compassionate tax system. The next step will have to be putting it into practice – and that will require genuine collaboration, sustained follow-through and a commitment to cultural change,” said FCA CEO Dr Domenique Meyrick.
“The Vulnerability Framework reflects good intentions, but people in hardship need more than intentions, they need action and accountability. It is vital for the ATO to make sure this framework delivers genuine, lasting change for the people who need it most. Making it easier for people to get payment plans and fair interest waivers would be a welcome start,” said Dr Meyrick.
Financial counsellors are still seeing serious problems in how the ATO handles financial difficulty. Clients often only seek help once they’ve reached crisis point, after receiving confusing or intimidating correspondence or facing aggressive recovery action.
FCA’s submission to the ATO outlined ten principles for supporting people in vulnerable circumstances, from early identification and clear hardship pathways to measurable outcomes and person-centred service design. It’s heartening to see some of these principles appear in the ATO’s framework, but they now need to translate into system change.
FCA is calling on the ATO to commit to transparent reporting on vulnerability outcomes, and how it’s putting the Framework into practice. There also needs to be stronger referral pathways to community support.
“With more and more Australians falling behind on tax debts, partnership and accountability will be vital to ensure no one is left behind,” Dr Meyrick said.
Financial Counselling Australia is the national peak body for the financial counselling profession, representing counsellors who provide free, independent and confidential advice to Australians in financial stress.
Above is a media release (21/10/2025) from Financial Counselling Australia (FCA), a valued member of the Consumers’ Federation of Australia. The contact information for FCA media enquiries is available below. The original article can be found on FCA’s website here: Financial Counselling Australia welcomes ATO’s Vulnerability Framework but calls for strong commitment to action – Financial Counselling Australia.
For media enquiries contact media@financialcounsellingaustralia.org.au or call Maura Angle on 0418 334 121.