ATO issues $1,650 fine to 97-year-old woman who had not ‘prioritised tax obligations’ after husband’s death

The Australian Taxation Office fined a 97-year-old Brisbane woman $1,650 because she had not “prioritised her tax obligations”, despite the recent death of her husband who managed their financial affairs. The decision was only overturned after her accountant posted details of the incident on LinkedIn – catching the attention of industry associations and the tax ombudsman, who issued a stinging rebuke direct to the ATO. After a lifetime of submitting tax returns on time, the elderly Brisbane resident lost her husband in mid-2023, according to details provided to Guardian Australia by accountant Nathan Watt. Her circumstances were further complicated by the sale of the tax practice formerly used by the couple. Then, the 97-year-old was charged $1,650 for the late lodgement of her 2025 returns. Watt detailed the extenuating circumstances to the ATO and asked for the charge to his client to be overturned. The ATO’s response read: “Your remission has been considered, we’ve decided not to remit.” “You have not prioritised your tax obligations. It is your responsibility to manage your affairs to ensure lodgment by the due date,” the response said. “Remission would not be considered fair or reasonable when other taxpayers have taken steps to lodge on time.” The ATO rejection letter sent to the Brisbane woman. In his LinkedIn post, Watt said he wondered “how the person at the ATO who wrote this felt when they were doing it”. …