ATO consultation report

This report describes ATO consultation activities in November 2022.

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

It contains:

• Consultation matters              
  • Statistics
  • Consultation matters received
  • Consultation matters completed
  • Advice and guidance products released for consultation
  • Legislative instruments released for comment
• News              
  • Stewardship groups
  • Special purpose working groups
  • Stakeholder relationship groups

Consultation matters

Statistics

Consultation matters received

[202230] Sharing Economy Reporting Regime

[202226] Improve small business tax performance

[202225] Tax liability of legal personal representative of a deceased person

Consultation matters completed

[202228] Next 5,000 comprehensive risk review process

[202224] User research – Retirement villages

[202222] Superannuation guarantee charge letter

[202216] 2022 Review of the Taxpayers' Charter

[202213] Advance pricing arrangements program review

[202138] Review of new tax legislation guidance material

Advice and guidance products released for consultation

Draft Practical Compliance Guideline PCG 2022/D4 Claiming a deduction for additional running expenses incurred while working from home - ATO compliance approach

Draft update to Taxation Ruling TR 2021/2DC1 Fringe benefits tax: car parking benefits

Draft Excise Ruling ER 2022/D1 Excise: the meaning of ‘legally and economically independent’

Decleah Investments Pty Ltd and anor as Trustee for the PRS Unit Trust and Commissioner of Taxation

Water West Pty Ltd and Commissioner of Taxation

See open consultation for current products open for consultation.

Legislative instruments released for comment

Draft Legislative Instrument A New Tax System (Goods and Services Tax): Recipient Created Tax Invoice Determination 2023

Draft Legislative Instrument A New Tax System (Goods and Services Tax): Waiver of Tax Invoice Requirement (Acquisitions by Recipients Using Electronic Purchasing Systems) Determination 2023

Draft Legislative Instrument A New Tax System (Goods and Services Tax): Waiver of Tax Invoice Requirement (Acquisitions from or by a Beneficiary of a Bare Trust) Determination 2023

Draft Legislative Instrument A New Tax System (Goods and Services Tax): Waiver of Tax Invoice Requirement (Acquisitions from or by a Partnership) Determination 2023

Draft Legislative Instrument A New Tax System (Goods and Services Tax): Waiver of Tax Invoice Requirement (Acquisitions from Property Managers) Determination 2023

Draft Legislative Instrument A New Tax System (Goods and Services Tax): Waiver of Tax Invoice Requirement (Acquisition of a Motor Vehicle Under a Novated Lease Arrangement) Determination 2023

Draft Legislative Instrument A New Tax System (Goods and Services Tax): Waiver of Tax Invoice Requirement (Acquisitions under an Agency Relationship) Determination 2023

Draft Legislative Instrument A New Tax System (Goods and Services Tax): Waiver of Tax Invoice Requirement (Acquisitions Where Total Consideration Not Known) Determination 2023

Draft Legislative Instrument A New Tax System (Goods and Services Tax): Waiver of Tax Invoice Requirement (Creditable Acquisition Following a Sale of a Reversionary Interest in Commercial Premises) Determination 2023

Draft Legislative Instrument A New Tax System (Goods and Services Tax): Waiver of Tax Invoice Requirement (Creditable Acquisition of Taxi Travel) Determination 2023

Draft Legislative Instrument A New Tax System (Goods and Services Tax): Waiver of Tax Invoice Requirement (Offer Documents and Renewal Notices) Determination 2023

Draft Legislative Instrument Corporations (Aboriginal and Torres Strait Islander) (Eligible Officer Exclusion - resigned directors) Determination 2022

Draft Legislative Instrument Corporations (Eligible Officer Exclusion - non-individuals and resigned directors) Determination 2022

Draft Legislative Instrument Taxation Administration (Exemption from Providing Payment Summaries to Passbook Account Holders) Legislative Instrument 2023

See open consultation for current products open for comment.

News

Stewardship groups

The GST Stewardship Group (GSTSG) met and the topics discussed included:

• the ATO’s GST digital strategy – members provided a range of insights and are keen to be involved in consultation as the strategy is further developed
• ATO’s Improve small business tax performance key focus area – members provided feedback on topics such as natural systems to support ‘real-time’ GST solutions and shifts that might be required to enable these changes to occur
• Operation Protego
• Lodge and Pay, including the expansion of the disclosure of business tax debts
• GSTSG 2022 key achievements, with members noting that
  • their voices and concerns are being heard and incorporated into ATO initiatives to improve the GST system
  • workshops on the 2030 GST Vision were productive and they can see how items that were discussed have fed into the GST digital strategy.

The Large Business Stewardship Group met and the topics discussed included:

• the extension and expansion of the Tax avoidance taskforce, tax gap, justified trust, Corporate tax transparency report and findings reports
• Treasury’s recent consultations, developments on OECD Pillars, and the Budget
• the review of new legislation guidance products – renewed focus on public advice and guidance and outcomes of the recent review into new law guidance material jointly undertaken by the ATO and Treasury
• findings from the 2022 Corporate Tax Association Benchmarking survey which provide perspective on the pressures faced by large corporates’ tax teams
• International dealings schedule hybrid mismatch and reporting obligations – ATO will consider whether any further guidance is needed to assist taxpayers
• the creation of a PGI-GST Hub to support the management of GST for public and multinational businesses, public groups and international
• proposed changes to the 2023 Reportable tax position (RTP) schedule instructions
• the ongoing review of the channels for our large market service offering.

The National Tax Liaison Group (NTLG) met with the Board of Taxation, Treasury and the ATO to discuss:

• the ATO’s approach to public advice and guidance regarding cryptocurrency, digital assets and transactions
• the NTLG joint bodies submission on the Review of the Tax Treatment of Digital Assets and Transactions in AustraliaExternal Link to the Board of Taxation
• the potential for external NTLG member bodies to establish a digital assets and transactions working group.

The Private Groups Stewardship Group (PGSG) met and the topics discussed included:

• 2022–23 Federal Budget and new measures impacting the ATO
• the Corporate tax transparency report for the 2020–21 income year
• latest findings from the Top 500 and Next 5,000 tax performance programs
• client-to-agent linking and its progressive roll-out
• changes to Category C questions in the 2023 RTP schedule instructions and high level observations on the first year of private companies lodging an RTP schedule
• the marketing campaign to have directors apply for their director identification by the 30 November 2022 due date
• income tax issues in the Private Wealth market
• public advice and guidance relevant to Private Groups
• consultation on proposed draft public advice and guidance in relation to worker classification prior to publication for public consultation
• consultation on the proposed Next 5,000 comprehensive risk review process
• PGSG 2022 key achievements and key focus areas for 2023.

The Small Business Stewardship Group met and the topics discussed included:

• the operation of the group and 2023 forward planning
• the small business audit and objection pipeline and raising awareness of alternative dispute resolution services
• challenges faced by sole traders and micro enterprises
• international examples of Tax Administration 3.0 and what might work in an Australian context.

The Superannuation Industry Stewardship Group met and the topics discussed included:

• regulators’ updates
• trustee issues in the current climate of heightened fraud and cybersecurity attacks
• member complaints about rollover transactions
• insurance in superannuation and some of the issues generating an increase in complaints
• consultation on draft public advice and guidance for the status of worker classification
• Australia’s results in the Mercer CFA Institute Global Pension Index 2022External Link, including what Australia could do to reach A-Grade status.

The Tax Practitioner Stewardship Group (TPSG) met and the topics discussed included:

• the 2030 Tax Practitioner Experience Strategy
• managing system integrity and mitigating risks
• Improving small business tax performance
• the Lodge and Pay intermediary experience
• lodgment deferrals in Online services for agents.

TPSG professional association members met to discuss client-to-agent linking which included:

• phase 1 outcomes and the user experience
• the implementation plan and tranche approach for the rollout of phase 2
• the communications and support required for impacted stakeholders.

Members of the TPSG met in response to the recent and continuing flooding events to discuss:

• activities undertaken by the ATO to support impacted taxpayers and tax professionals
• identification of impacted clients and agents
• if members of the tax profession are aware of the support measures available to them
• if the support measures are meeting needs
• next action steps
• flood support updates on ato.gov.au

Special purpose working groups

The Communication Content Working Group met to review and provide feedback on guidance material relating to communications on:

• the 408 Pandemic event visa
• Working from home – fixed rate
  • fixed rate method of 67 cents per hour
  • decline in value of depreciating assets
  • working from home expenses
  • occupancy expenses.

Stakeholder relationship groups

The Tax Profession Digital Implementation Group met and the topics discussed included:

• lodgment deferrals in Online services for agents
• ATO digital refresh strategy overview 2022–2025
• cyber security awareness and practice
• Digital uplift strategy – Tax professionals.