A follow-up study of Australian tax agents' attitudes towards the Electronic Lodgement Service introduced by the Australian Taxation Office (ATO) found that perceptions of improved cooperation had declined. Despite further improvements at the level of routine transactions and a strong increase in perceptions that the benefits of the new system offset the costs to agents, divergent goals and greater agent uncertainty about how the ATO would use its monitoring capacity and regulatory authority appear to have restricted the system's positive contributions to regulatory strategy.