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  • ATO consultation arrangements report

    This report describes ATO consultation activities to 30 November 2018.

    This report is prepared monthly and shared with our stewardship groups and registered stakeholders.

    It contains:

    Stewardship group news

    The Tax Practitioner Stewardship Group met on 16 November 2018 and discussed:

    • an update on the implementation of Single Touch Payroll
    • Business Reporting and Registration strategic initiatives including:
      • Australian Business Number regulatory reform
      • Australian Business Register review implementation
      • e-Invoicing
      • Modernising Business Registers program
    • ATO communications – digital delivery and preferencing for delivery channels
    • expansion of the Taxable Payments Reporting System and analysis of reporting in the building and construction industry
    • use of digital services and technology to support reducing the individuals tax gap
    • completion of work being conducted by the Professional Services Reference Group and future plans for addressing agent concerns.

    The Not-for-profit Stewardship Group met on 28 November 2018, where new members were welcomed and retiring members thanked for their contribution. The main topics discussed included:

    • Board of Tax Fringe Benefits Tax Compliance Cost Review
    • Treasury update - including the ACNC review, external conduct standards and Deductible Gift Recipient reform
    • new and emerging operating models in the not-for-profit space
    • the ATO view on when annual leave loading is classified as Ordinary Time Earnings (OTE) for Superannuation Guarantee Charge purpose
    • ATO’s 2024 client experience aspirations
    • NFP tax concessions Working Group update
    • Risk and assurance update.

    The Large Business Stewardship Group met on 22 November 2018 and discussed:

    recent developments at the Board of Taxation

    • compliance risks and emerging issues
    • peer review program on mutual agreement procedures
    • Country-by-Country (CbC) reporting
    • justified trust and corporate governance
    • action differentiation framework (ADF) and the key client manager review and redesign
    • ATO focus areas for 2019.

    The Small Business Stewardship Group met on 22 November 2018, welcoming Kate Carnell, ASBFEO, as the new Co-chair and discussed:

    • status of new legislative measures which may impact on small business including bills currently before the Parliament
    • Australian Small Business and Family Enterprise Ombudsman’s (ASBFEO) focus on:
      • improving payment times and practices, as payment times are placing stress on cash flow for small and family businesses
      • improving access to justice for small businesses in dispute
    • status of government proposals regarding ABN reform aimed at helping small businesses to get it right from the start; modernising business registers, and progress on the Australian Business Register review
    • e-Invoicing - its value proposition and how we can help small businesses understand and access a system which is around 70% cheaper than traditional paper or PDF invoices to process
    • Cash Flow Coaching kit and the pilot currently underway testing a new digital version
    • ATO’s transitional approach to helping small and micro employers work towards becoming STP enabled including progress on development of low and no cost solutions for small employers
    • Data Sharing and Release reforms announced by the government including the status of consultation on the proposed legislative framework (presented by Office of Data Commissioner, Department of Prime Minister and Cabinet)

    The Individuals Stewardship Group met on 13 November 2018 and discussions included:

    • Andrew Mills, Second Commissioner provided an overview of the ATO’s Law, Design and Practice Group which includes consultation, revenue analysis, advocacy from an administrator’s point of view, tax counsel network and review and dispute resolution
    • Tax Time 2018 outcomes saw an increase in lodgments of 10.3 million, up 3% from Tax Time 2017, including 3.8 million myTax lodgements. Over 7.7 million refunds were issued, collectively worth $18.3 billion
    • individuals not in business income tax gap released in July 2018 - members provided feedback on the design of the future taxpayer experience supported by technology solutions, which will make it simpler and easier for people to comply and help reduce the gap
    • ATO online display screens - members were walked through the prototypes ATO online display screens to provide individuals with the ability to view employer contributions paid into their APRA funds in near real time. The screens are scheduled to be deployed in March 2019
    • overview of the role of the Australian Shareholders Association.

    The Private Groups Stewardship Group met on 29 November 2018 and discussed:

    • Section 100A reimbursement agreements - providing input to the development of this guidance
    • Division 7A Treasury consultation paper - where members had an opportunity to discuss their views with a Treasury representative
    • ideas on contemporary ways for the ATO to communicate with privately owned and wealthy groups and their advisors
    • issues being progressed by the Government and the Phoenix Taskforce, including Director Identification Number
    • The J5 Global Tax Enforcement Alliance, which was launched at the OECD’s Taskforce on Tax and Other Crimes meeting in Paris on 31 October 2018.
    • Tax and System Governance Tool - currently under development to make it easier for clients to have better systems to meet their tax obligations.

    The National Tax Liaison Group (NTLG) met on 30 November 2018 and topics discussed included:

    The GST Stewardship Group met on 14 November and discussed:

    • broad strategic trends for GST systems
    • future direction of public advice and guidance
    • Treasury update including from the OECD WP No 9 on the sharing economy and low value imported goods
    • recently implemented GST at settlement and GST on low value imported goods (LVIG) measures noting that these measure are underway and have been implemented well
    • Financial Services Industry credit card guidance update and work to issue a draft GST Determination (GSTD) by the end of 2018, outlining the ATO view on how acquisitions relate to supplies in a credit card issuing business. We will also develop a Legislative Instrument (LI) to provide an apportionment method that must be used for acquisitions in a credit card issuing business, noting the combined approach is to ensure we are providing consistency, greater certainty and a level playing field across the industry
    • the establishment of a multi-discipline team to look into the risks associated with build to rent issues
    • effective use of data and the importance of high quality data and analytics in the ATO
    • objections and how we manage the end to end process.

    Other news

    The Consultation Steering Group (CSG) met on 19 November 2018 and discussed:

    2018 Federal budget -Super Measures Group met on 7 November 2018 and discussed:

    • better integrity over deductions for personal contributions
    • update on info-graphic and compliance letters for the better integrity over deductions for personal contributions (Notice of Intent) measure
    • update on ATO Online messaging
    • proposed high level design for the work test exemption for recent retirees
    • re-versioning the Rollover Message Implementation Guide (MIG) (including SMSF Rollovers) and high level design.

    2018 Federal Budget - Consultation (broader group)External Link met on 27 November 2018 and discussed:

    • protecting your super package – unclaimed superannuation and proactive reuniting
    • re-versioning the Rollover MIG (including SMSF rollovers).

    Release authorities workshop was held on 1 November 2018, with a targeted group to work through designing a solution to digitise Release Authorities.

    Superannuation Diagnostic Report for large APRA funds co-design group held multiple sessions with individual funds and groups of funds on 16, 19 and 20 November 2018. They discussed re-designing the Diagnostic Report to ensure it continues to provide large APRA funds with a relevant and increasingly contemporary report that will help assess the fund’s performance.

    New matters for consultation

    [201828] Superannuation Diagnostic Report for large APRA Funds

    Registered: November 2018; expected completion: August 2019

    Purpose: To co-design and provide insight in relation to the re-design of the diagnostic report for large APRA funds.

    Matters in progress

    Consultation is in progress for 10 matters – for more details see Matters under consultation.

    Completed consultation

    No consultation matters were completed in November 2018

    See also:

    Last modified: 04 Jan 2019QC 43732