To discuss the proposed second schedule on transaction accounts to Practical Compliance Guideline PCG 2019/8 ATO compliance approach to GST apportionment of acquisitions that relate to certain financial supplies.

The consultation will assist in the development of a draft for public consultation.

Practical Compliance Guideline PCG 2019/8 ATO compliance approach to GST apportionment of acquisitions that relate to certain financial supplies outlines how we assess risk for GST apportionment methodologies used by banks and financial institutions to determine their entitlement to GST credits. Schedule 2 specifically relates to transaction account business.

The Guideline and Schedule 1 on credit cards came into effect on 1 January 2020.

• Industry associations including the Australian Banking Association, the Australian Finance Industry Association and Customer Owned Bank Association
• Tax advisers
• Banks
• Other financial institutions

Comments provided during the targeted consultation process have been considered in the development of the draft. The draft Practical Compliance Guideline is expected to be released for public consultation in March 2020.

Megan Croaker, Public Groups and International
FSIconsult@ato.gov.au
Phone (02) 9374 2794

To seek feedback on ATO's risk assessment on the issue.

We are reviewing structured arrangements that are designed to provide imputation benefits from shares acquired where economic exposure is designed to be offset through choice of derivative instrument.

Stakeholders who have relevant experience in derivative instruments and/or the imputation system.

Changes will be made to reflect the feedback.

Andrew Grace, Client Engagement Director, Public Groups and International
andrew.grace@ato.gov.au
Phone (08) 8208 1688

To seek feedback on proposed changes to 2019 reportable tax position (RTP) schedule instructions.

Reportable tax position schedule instructions 2019 help with completion of the Reportable tax position (RTP) schedule as part of a Company tax return 2019.

We have undertaken a review of the 2019 RTP schedule instructions and have proposed a number of changes.

• KPMG, Deloitte, PwC, EY
• Chartered Accountants Australia and New Zealand
• The Tax Institute
• Large Business Stewardship Group
• Corporate Tax Association

Feedback was received and reviewed for incorporation into the RTP schedule instructions update for 2019. Changes are only being made to the Category C section this year. Updated instructions will be published in December 2019. Further changes will be considered in the 2020 RTP schedule instructions.

Roman Raskine, Project Officer, Public Groups and International
roman.raskine@ato.gov.au
Phone (03) 9215 3221

To discuss and seek feedback on what is meant by ‘term of the lease’ in Taxation Determination TD 93/142 Income tax: in calculating the residual value of a leased item, may a lower residual value than those outlined in IT 28 be adopted in light of the more generous depreciation rates? for calculations to ensure residual value amounts are correct.

Feedback was received, informing the ATO that different approaches were being undertaken for calculating the correct residual amount in leases.

• Fringe Benefits Tax Working Group
• Australian Finance Industry Association
• Chartered Accountants Australia and New Zealand
• Practitioners in the leasing industry

Feedback received was incorporated into draft guidance with publication for public consultation anticipated in March 2021.

Sean Bielanowski, Public Groups and International
sean.bielanowski@ato.gov.au
Phone (07) 3213 5729

To seek input from individuals who are not in business, tax agents and digital service providers about ideas that would help support them in the individual tax return preparation and lodgment process into the future.

The ATO is continually looking at ways to help individuals get their tax right and streamline the experience to make managing their tax affairs easier, whether they use a tax agent or are self-preparers.

The ATO is investigating ways to improve access and use of services in tax return preparation and lodgment, whether lodgment is through an agent or via myTax.

• Community
• Tax agents
• Digital service providers

Consultation has informed opportunities and solutions to improve access and use of services in tax return preparation and lodgment.

David Owen, Senior Designer, Enterprise Strategy and Design
david.owen@ato.gov.au
Phone (03) 9285 1901

To understand the current experience for small business (including sole traders), SMSF approved auditors, not-for-profits, medium and large business, superannuation funds and insolvency practitioners who use the Business Portal, to help inform the future design of online services for business.

The ATO is exploring the user experience to identify opportunities to improve the future design of online services for business.

• Small business (including sole traders)
• SMSF auditors
• Insolvency practitioners
• Not-for-profits
• Medium business
• Large business
• Superannuation funds

Feedback was used to support decisions on the product design and usability of the service for target user groups. It informed and/or confirmed the design of pages and content to develop a high quality digital service.

Kim Dimmick, Transition Manager, Small Business
kim.dimmick@ato.gov.au
Phone (07) 3213 5439

To seek feedback on the proposed Draft Taxation Ruling prior to publication for public consultation.

A new Draft Taxation Ruling Income Tax: when are deductions allowed for employees’ transport expenses? will soon be released for public consultation. The draft will partially replace draft Taxation Ruling TR 2017/D6 Income tax and fringe benefits tax: when are deductions allowed for employees' travel expenses?

• Members of the Consultation Steering Group
• National Tax & Accountants' Association

Feedback received will be considered. Draft Taxation Ruling Income tax: when are deductions allowed for employees’ transport expenses? is scheduled to be published in December 2019 for public comment.

Kim Hall, Individuals and Intermediaries
kim.hall@ato.gov.au
Phone (07) 3149 5412

To gain a better understanding of communication and education that the community needs in relation to the Low and middle income tax offset (LMITO).

The introduction of LMITO during Tax Time 2019 caused a lot of confusion amongst taxpayers, particularly in relation to what they were entitled to and how the offset worked. We want to investigate current levels of understanding to inform future communication approaches.

• Community
• Tax agents

An evaluation report, to inform future communication approaches, is being prepared.

Breanna Daniel, Communication Manager, ATO Corporate
breanna.daniel@ato.gov.au
Phone (02) 6216 1076

To understand the experience of tax advisors involved in the LMIR process and obtain any insights or suggestions that may make the process more effective and efficient for both taxpayers and the ATO.

The LMIR process was implemented by the ATO in July 2013.

A review is being undertaken to assess the effectiveness and efficiency of the LMIR process and determine whether there are any areas for improvement.

• Corporate Tax Association
• Members of the National Tax Liaison Group
• Tax advisors who have been involved in the LMIR process

Feedback received is being considered as part of the review of the LMIR process.

Ben Middleton, Review and Dispute Resolution
ben.middleton@ato.gov.au
Phone (03) 9285 1171

Abdo Dirani, Public Groups and International
abdo.dirani@ato.gov.au
Phone (02) 9374 8189

To seek feedback from trusted advisors of the ATO on a product to assist case officers and generate understanding of the administration of the penalties within the broader superannuation community.

The purpose of the practice statement is to provide guidance on:

• when an entity becomes liable to one or more administrative penalties under the Superannuation Industry (Supervision) Act 1993 (SISA)
• which entities are liable to pay the administrative penalty
• the Commissioner's remission considerations, and
• objection, review and appeal rights.

• Professional associations
• Industry representatives

Feedback provided by professional associations and industry representatives has been taken into consideration. The feedback has assisted in the development and improvement of the relevant practice statement.

PAGSEO@ato.gov.au

To seek feedback on issues relating to access to deceased taxpayer information and for the ATO to consider all administrative and interpretive options/solutions that may be available.

Access to deceased taxpayers‘ information is not provided to agents, legal practitioners and certain other representatives through the new ATO Online services for agents.

• Tax professionals
• Members of the Tax Practitioner Stewardship Group

Feedback received has been incorporated into Legislative Instrument CRP 2020/1 Taxation Administration (Remedial Power – Disclosure of Protected Information by Taxation Officers) Determination 2020 which is expected to be tabled in parliament in mid-February 2020.

Lloyd Williams, Project Officer, Individuals and Intermediaries
tpsg@ato.gov.au
Phone (02) 6216 1030

To obtain feedback from APRA super funds on the proposed changes to the Successor fund transfer reporting protocol pages prior to them being published onto ato.gov.au

We have been undertaking a review of the Successor fund transfer reporting protocol on ato.gov.au. We have revised content, to clarify some of the common enquiries we receive from industry, as shown in the proposed pages. This includes additional information to assist funds meeting their reporting obligations.

APRA superannuation funds

Feedback is currently being collated and reviewed for incorporation into the protocol prior to being published on ato.gov.au

Aubrey Tse, APRA Fund Engagement, Superannuation & Employer Obligations
aubrey.tse@ato.gov.au
Phone (02) 9374 8945

To obtain feedback from APRA super funds on the proposed new USM protocol pages prior to them being published onto ato.gov.au

We have been undertaking a review of the USM protocol on ato.gov.au. We have developed a new structure to streamline the protocol and make it easier to navigate quickly to the topic of interest.

APRA superannuation funds

Feedback is being reviewed and will be incorporated in the protocol prior to its publication on ato.gov.au

Susan Laverty, Superannuation and Employer Obligations
susan.laverty@ato.gov.au
Phone (02) 9354 3803

To seek comment on the ATO’s administrative approach to the disclosure of business tax debt information to credit reporting bureaus.

In the 2016–17 Mid-Year Economic and Fiscal Outlook, the government announced its intention to allow the ATO to report to credit reporting bureaus (CRBs), the tax debt information of entities that consistently do not engage with the ATO to manage those tax debts.

The purpose of allowing the ATO to report an entity’s tax debt information to CRBs is to:

• support more informed decision making within the business community
• reduce the unfair advantage obtained by entities that do not pay their tax on time and who do not engage with the ATO in managing their tax debts
• encourage entities to engage with the ATO to manage their tax debts.

Under the ATO’s phased implementation approach, the measure will be implemented gradually to ensure systems, safeguards and process are robust.

As part of the gradual implementation, the initial phase will focus on raising community awareness of the measure and its implications. Initially, only companies that meet defined criteria and who have significant high risk tax debts will be reported. Gradually, implementation will be expanded to other entity types such as partnerships, trusts and sole traders. The measure does not apply to individuals who do not have an Australian business number (ABN).

See Advice under development – [3994] Disclosure of business tax debts.

• Community
• Businesses
• Inspector-General of Taxation and Taxation Ombudsman

Consultation provided valuable feedback and insights that have assisted the ATO to shape the administrative safeguards and approach in relation to the disclosure of business tax debts to credit reporting bureaus.

Terry Muggeridge, Director, Debt and Lodgment Integration
DisclosureOfBusinessTaxDebts@ato.gov.au
Phone (08) 9268 6126

To seek advice and feedback on improving the 2020 CTR instructions.

The CTR instructions format has remained fundamentally unchanged from the original paper product that was produced until 2015.

The intention is to review and revise the CTR instructions and make modifications to:

• improve the online useability
• remove duplicate information
• streamline the guidance to assist in more timely preparation and completion of the CTR.

• Small, medium and large businesses
• Digital service providers
• Tax practitioners
• National Tax Liaison Group
• Large Business Stewardship Group

Feedback is currently being collated and reviewed to incorporate in the 2020 CTR instructions which will be published on ato.gov.au for Tax Time 2020.

Sophie Zeng, Change Manager, Public Groups and International
sophie.zeng@ato.gov.au
Phone (02) 6216 6962

To seek feedback and comments about the implementation of Reportable Tax Position (RTP) Schedule for large private companies and large private corporate groups in the 2021 income year.

Currently all large public and multinational companies are required to complete and lodge an RTP Schedule disclosing their most contestable and material tax positions.

The requirement to lodge an RTP Schedule will be extended to include large private companies and large private corporate groups in the 2021 income year.

It is envisaged that the expansion of the RTP Scheduled to large private companies and corporate groups will provide a level playing field among large corporate groups by ensuring all large businesses have the same obligation to disclose their most contestable and material tax positions, irrespective of whether they are a public or private business.

The extension of the RTP Schedule to large private companies and corporate groups will support the ATO's engagement with large market taxpayers and allow us to identify areas where we need to provide further clarification/certainty on the correct treatment of transactions and complex high risk tax arrangements.

• Taxpayers
• CPA
• Chartered Accountants Australia and New Zealand (CAANZ)
• The Tax Institute
• Law Council of Australia
• Private Groups Stewardship Group
• Large Business Stewardship Group
• Tax Practitioner Stewardship Group
• National Tax Liaison Group

Feedback will be used to inform the expansion of the RTP Schedule to large Australian private clients and help shape communications and support for clients who are required to lodge RTP Schedules.

Michael Drogaris, Project Manager, Private Wealth
michael.drogaris@ato.gov.au
Phone (02) 9374 2323

To determine the effective life of assets used in the following industries:

• child care services industry
• aircraft industry
• general practice medical services
• funeral, crematorium and cemetery services
• supermarket and grocery stores.

Under section 40-100 of the Income Tax Assessment Act 1997 the Commissioner may make determinations of the effective life of depreciating assets. The determinations will be used to update and expand the effective life schedule attached to Taxation Ruling TR 2019/5 Income tax: effective life of depreciating assets.

The draft effective lives determinations will be referred to an independent review panel expected to be held in April 2020. The review panel checks the review process to confirm that the level of industry consultation was appropriate. If approved, the effective life determinations are expected to apply to assets purchased on or after 1 July 2020.

• Professional associations
• Industry associations
• Businesses
• Suppliers
• Manufacturers and repairers of assets used in these industries

Final checks underway. It is expected the determinations will be released in June and will apply to assets purchased on or after 1 July 2020.

Kim Dziedzic (General Practice medical services), Capital Allowances Team, Advice and Guidance, Public Groups and International
kim.dziedzic@ato.gov.au
Phone (07) 3213 5764

Kim Dziedzic (Funeral, crematorium and cemetery services), Capital Allowances Team, Advice and Guidance, Public Groups and International
kim.dziedzic@ato.gov.au
Phone (07) 3213 5764

John Di Francesco (Aircraft industry), Capital Allowances Team, Advice and Guidance, Public Groups and International
john.difrancesco@ato.gov.au
Phone (07) 3213 6059

Susan Li (Child care services industry), Capital Allowances Team, Advice and Guidance, Public Groups and International
susan.li@ato.gov.au
Phone (07) 3119 9891

Shirley Liao (Supermarket and grocery stores), Capital Allowances Team, Advice and Guidance, Public Groups and International
shirley.liao@ato.gov.au
Phone (07) 3213 5264

To gain insights into the information and support required by the superannuation industry regarding their reporting requirements and obligations when funds go through a SFT.

To consider existing guidance material available to superannuation funds to support them through the successor fund transfer process and identify where improvements can be made.

• Industry representatives
• Professional associations

We received positive feedback and the information obtained from attendees will be used to update our communication products and guidance material for APRA funds entering in to a SFT arrangement.

Larissa Evans, Director, Superannuation and Employment Obligations
larissa.evans@ato.gov.au
Phone (07) 3149 5685

To review information requests templates for pre-issue GST refund verification as recommended by the Inspector General of Taxation in the GST refunds review report, March 2018External Link.

We are committed to ensuring information requests for GST refund verification are tailored according to the risk identified through our risk assessment tools and client profiling. We reviewed our profile questionnaires and sought feedback from industry experts to ensure the proposed questions:

• are appropriately focused
• streamline the existing questionnaire
• respond to issues raised regarding voluminous or irrelevant information requests
• use clear and appropriate language.

GST Stewardship Group

Feedback was received by a number of GST Stewardship Group members which was considered and incorporated into the new business profile questionnaire.

Helen Konstantinidis, Client Engagement Manager, Small Business
Helen.Konstantinidis@ato.gov.au
Phone (03) 9275 2199

To:

• build on the work the ATO completed with the Super Measures Group to resolve issues and understand industry readiness for Protecting Your Super (PYS)
• work closely with stakeholders and provide answers to the issues raised to assist the industry to be ready for the 30 June 2019 commencement date.

To provide guidance to trustees on the administration of the changes under the PYS package and give trustees an opportunity to provide feedback on the implementation material.

Superannuation funds

Feedback was incorporated into the development of an interim reporting solution and in the unclaimed super money proactive consolidation/aggregation process to better support funds deal with the large volume of accounts being consolidated to member’s active account, held by a super provider.

Louie Markovski, Director, Protecting Your Super project team
pysproject@ato.gov.au
Phone (03) 9275 5333

To obtain feedback on the tax time experience of:

• small businesses that are Single Touch Payroll (STP) employers
• registered agents servicing small business clients who are STP employers as well as individuals employed by STP employers
• individuals who are employer by STP employers that prepare their own income tax returns.

Findings obtained through this research will be used to inform and shape communications and support products for these groups.

• Small business
• Agents
• Individuals

The information we obtained will be used to inform and shape communications and support products for small businesses, registered agents and individuals.

David Owen, ATO Design
david.owen@ato.gov.au
Phone (03) 9285 1901

To update the ATO's proof of record at contact questions in accordance with community expectations.

The ATO is conducting user testing with a broad range of individuals across the community to gauge the effectiveness and comprehension of a new set of proof of record at contact questions that individuals will be required to answer to prove their identity before accessing their tax record via telephone.

Broad range of individuals

Consultation participants highlighted specific questions that were challenging to answer when proving their identity at contact. These questions have since been revised based on community feedback and will be released mid-June 2019.

Luke Anderson, Client Register Integrity, Client Account Services
luke.anderson@ato.gov.au
Phone (07) 3149 5527

To seek feedback on proposed changes to the lost members register protocol incorporating:

• recent changes to the law
• clarification to content based on enquiries received from industry.

The lost members register protocol requires changes to be made as a consequence of recent changes to the law. In addition, we are taking the opportunity to incorporate changes that will clarify some of the information in the protocol as a consequence of enquiries received from industry.

Interested superannuation industry stakeholders

Feedback received was considered and adjustments were made to the protocol which was published on 20 August 2019.

Melissa Eagleson, Super Audience Team, Marketing and Communications
melissa.eagleson@ato.gov.au
Phone (02) 9685 8599

To understand SMSF auditor business processes and explore potential future state options to replace the eSAT tool.

The role of an SMSF auditor is to ensure the integrity of the SMSF industry. eSAT is the sole digital channel available for SMSF Approved Auditors to lodge an Auditor Contravention Report.

As part of our future digital experience, the ATO is looking to provide an improved and contemporary digital service for Approved Auditors, streamlining reports and aligning with current ATO digital services.

SMSF approved auditors

Participants assisted to validate and refine current processes, provide feedback on issues and irritants and explore the future of the SMSF audit industry to identify potential future needs. Participants then collaborated to create future concepts for an improved experience.

This research will be used to help shape the future auditor digital experience.

Jill Tropea, Project Officer, Superannuation and Employer Obligations
jill.tropea@ato.gov.au
Phone (07) 4753 7151

To:

• raise awareness across the tax profession and key stakeholders of the changes ASFP will bring
• ensure we engage with a broad cross section of the community, including digital service providers, tax professional associations and other government agencies
• work in partnership with key stakeholders to understand the impact on business processes and help shape and tailor the communication approach.

The intent of the ASFP project is to continue rationalisation of the internal accounting systems and transition Indirect Tax accounts, primarily activity statement and franking deficit tax accounts, and related processes into the ATO's Integrated Core Processing (ICP) system.

ASFP will deliver a single accounting system with multiple accounts and a single case management system for debt work, with the exception of excise. There will be an improved analytics system allowing tailored client interactions for debt, which can be used across other products.

• Tax professional associations
• Small business
• Digital service providers
• Other government agencies
• ATO staff

Participants contributed to the successful deployment of the ASFP project, which transitioned activity statements and franking deficit tax financial processing from our legacy system to our integrated core processing system.

Participants provided input and advice on implementation issues relating to ASFP.

Activity Statement Financial Processing Working Group members:

• provided input and advice on
  • implementation issues relating to ASFP
  • how the ATO communicate the ASFP change story – the what, why, how and when – for the tax professional audience
   
• became champions/ambassadors for the ASFP project with colleagues.

Mary Arrowsmith, Assistant Commissioner, ASFP Senior Responsible Officer, Client Account Services
mary.arrowsmith@ato.gov.au
Phone (02) 4223 2235

To understand the factual scenarios in which compensation payments will be made to superannuation funds to determine the superannuation, income tax and GST consequences.

The ATO provided guidance in October 2018 on the tax treatment of compensation payments made to individuals by financial institutions. The ATO is actively engaging with the superannuation and financial services industry and regulators to identify scenarios and issues arising from compensation payments made to super funds for the benefit of members. The ATO will be providing further guidance on these issues.

• Government agencies
• Financial services industry

Feedback was incorporated into guidance on these issues that was published in the Compensation received by super funds from financial institutions and insurance providers fact sheet on 19 July 2019.

Shaun Milner, Director, Superannuation and Employer Obligations
shaun.milner@ato.gov.au
Phone (03) 9215 3526

To test the feasibility of a GST Simplified Accounting Method to support pre-filling of the BAS with third party data by better understanding the challenges faced by ride sourcing drivers in complying with their tax obligations.

A Simplified Accounting Method for GST would provide ride sourcing drivers with the option to apportion their expenses based on their total fares.

This would remove the need to manually track GST expenses and calculate GST credits claimed on the BAS.

GST reporting on the BAS could potentially be pre-filled from third party data where the driver has simple GST obligations.

Whilst the BAS pre-fill research is explorative in nature, the ATO is seeking to validate whether this would enhance the client experience and make it easier to lodge and pay the BAS on time.

Ride sourcing drivers

Feedback from the consultation sessions was positive, with participants confirming that an option such as the Simplified Accounting Method would make it easier for some drivers to comply with their tax obligations.

The feedback will be used to further refine our understanding of the feasibility of a GST Simplified Accounting Method for ride sourcing drivers and inform future iterations of the solution.

Lauren Taylor, Business Development Officer, Small Business
lauren.taylor@ato.gov.au
Phone (07) 3213 5113

To further understand the user experience relating to obtaining a proposed director identification number (DIN).

Building on previous consultation and co-design we are continuing to refine with users a future experience for the issue of a DIN to each director of any company registered or operating in Australia based on current draft legislation in Treasury Laws Amendment (Registries Modernisation and Other Measures) Bill 2019External Link.

Members of the business community, professional associations, industry and tax and legal professionals.

We are incorporating the feedback to refine a future DIN user experience.

Maria Martin, Assistant Director, ATO Design
directoridentificationnumber@ato.gov.au
Phone (02) 6216 5875

To seek stakeholder input on the establishment of an Australian Peppol authority and associated arrangements.

The Australian and New Zealand Prime Ministers issued a joint announcementExternal Link on e-invoicing on 22 February 2019 stating the two countries' intention to adopt the Peppol interoperability framework as the basis for trans-Tasman e-invoicing.

On 31 October 2019, ATO became registered as the Australian Peppol Authority.

Visit the Australian Peppol Authority webpageExternal Link for guidance, including information about how service providers can become accredited.

A range of stakeholders, including:

• digital service providers involved in electronic data interchange (EDI) and e-invoicing
• Australian Business Software Industry Association
• Tax Practitioner Stewardship Group
• Small Business Stewardship Group.

The feedback on local/arrangements for e-invoicing in Australia and New Zealand helped the ATO to develop local standards and governance approaches. It also helped inform the accreditation process to progress e-invoicing implementation in Australia.

Bruce Rossel, e-invoicing Project Team, Digital Delivery
e-invoicing@ato.gov.au
Phone (02) 6216 1787

To seek feedback and examples that may assist the Commissioner in developing public advice and guidance.

Community input is being sought on our proposed public advice and guidance strategy on measures contained in the Treasury Laws Amendment (Making Sure Foreign Investors Pay Their Fair Share of Tax in Australia and Other Measures) Bill 2018External Link. The proposal outlines the products that we expect to publish, including the topic areas and additional description and/or details for each topic.

Amongst other things, the Bill seeks to improve the integrity of the income tax law for arrangements involving stapled structures and to limit access to tax concessions for foreign investors by increasing the managed investment trust (MIT) withholding rate on fund payments that are attributable to non-concessional MIT income to 30%.

Community

The ATO has concluded consultation on this public advice and guidance strategy. A consultation paper was released and feedback sought to enable the ATO to determine the best approach and priority that should be given to any guidance.

The ATO is now working on drafting its advice and guidance with an aim of having the guidance to market before the 1 July commencement date for the relevant measures.

The ATO’s Advice under development program will show products as they are registered on the program which is updated monthly.

Tim Rowe, Assistant Commissioner, Tax Counsel Network
tim.rowe@ato.gov.au
Phone (03) 9285 1798