Outgoing ATO head Chris Jordan vows to keep foot on the pedal in final months

The outgoing head of the ATO has vowed to make every day at the end of his 10-year term count, warning staff against becoming too set in their ways and telling them to constantly strive to find improvements in customer service and efficiency.

As the Albanese government starts casting for who will succeed Chris Jordan as taxation commissioner, the public servant who has spearheaded arguably the most successful digital agency in Canberra says transformation-as-usual, with clients always at the centre, is what counts in earning public trust.

“The thing about the ATO is we do not accept the status quo,” Jordan said in an impassioned speech to staff on Friday. “If there’s a better way to do something, we’re open to it. We need to build on this and keep pushing and delivering.

“I want to make it clear I’ll be keeping my foot on the pedal over the next seven months. Each day, we need to keep our core purpose front of mind and ask ourselves: how do we best contribute to the economic and social wellbeing of Australians by fostering willing participation in the tax, super and registry systems?”

As all around crumbles

Jordan has solid justification to take a victory lap before drawing stumps on February 29, 2024.

Key transformation projects around him are in absolute tatters. Services Australia’s $200 million Entitlements Calculation Engine was publicly junked this week, with questionable procurement governance at that agency likely headed for another forensic probe. There are also troubled projects at the Department of Finance, most notoriously the Parliamentary Expenses Management System.

Public trust in government institutions has been dragged through the mud courtesy of robodebt (where ATO’s staff distinguished themselves for their integrity of character), yet Jordan is wearing his institution’s trust score on his sleeve as he peruses board seat offers undoubtedly now quietly rolling in.

“We’ve transformed externally by putting our clients first, consulting widely with tax practitioners and the community, and increasing our digital service options,” Jordan said. “And the proof is in the pudding – the latest ‘Trust in Australian public services’ report saw us come out on top, with 81% of people saying they trust the ATO.”

While it’s easy to dismiss such stats as legacy-making, Jordan does have a major point given that it’s the ATO’s official role to make taxpayers part with their money to fund the policies of the government of the day.

“[Ten] years ago, I said I wanted the ATO to be trusted and respected here and internationally. I said I want the tax and super systems to be fair, efficient and sustainable, and for the ATO to be recognised and valued as a necessary part of the Australian community,” Jordan said.

“I have to say, the past decade has flown by, but I can confidently look back and reflect on my statement from 10 years ago and say – we’ve done these things and more.”

The tax chief said success stemmed from “improvements in digital systems, the way we use data and how we engage and support taxpayers to meet their obligations”.

Architecture counts

A big part of that journey has been getting machines to do the heavy lifting in terms of making life easier for taxpayers and focusing on where tax efficiency can be increased to automate-out opportunities for errors, miscalculations and fraud.

There is still a year to go with the Toward 2024 ATO strategy, with Jordan outlining a focus on collectable debt, improving small business tax performance through digital innovations, focusing on superannuation guarantee non-compliance and “protecting the system and clients against fraud and managing cybersecurity”.

The first priority is a delicate one because while the ATO may be owed monies post-COVID, enforcing debts can push businesses onto the financial rocks. At the same time, so-called ‘zombie’ businesses need to be wound up and weeded out so that the ATO’s receivables are realistic.

“Improving compliance for our largest taxpayers” is a fairly tectonic affair given recent events. For the thousands of stories written about the PwC scandal, it was actually the tax office that sin-binned the offenders first after the confidences it extended were breached.

Jordan would have known the potential impact this would have on the big four but did not waver in terms of the action taken. At the same time, the ATO did not parade the guilty parties in stocks – somewhat understandably given the levels of political crossfire and manipulation demonstrated during the robodebt fiasco.

Perhaps Jordan’s biggest achievement as an organisational leader has been the rock-solid culture and embracement of diversity that still attracts graduates and recruits from private industry to do a stint at the tax office, which is arguably more multiculturally balanced than other agencies.

Tax has clearly used this to its advantage in terms of client communications and consultation that, in turn, fuels efficiency. Note that a lot of the narrative over the last decade has shifted from people, often smaller merchants, being pursued for avoiding tax to holding bigger businesses to account.

Measures like Single Touch Payroll, the ATO being able to directly interoperate with modern accounting software to automate transactions and the development of digital identity credentials have all happened on Jordan’s watch.

Tax is now arguably the most positive digital exemplar in the entire Australian Public Service.

Those are not small shoes to fill. If Jim Chalmers doesn’t want to fix what clearly isn’t broken, new leadership will likely come from within.

This article was first published by The Mandarin.

Clarification: An earlier version of this story misattributed the development of the Modernising Business Registers (MBR) project to the Australian Securities and Investments Commission. MBR development is being undertaken at the Australian Taxation Office.