To seek insights into ways the ATO can reduce the number of outbound cheques being issued to clients with agents.

Traditionally, some government agencies have been significant users of cheque payments but this is changing. Australian Government agencies have been taking steps to reduce payments by cheque, e.g. The Department of Human Services stopped issuing cheques for welfare payments through Centrelink in January 2016 and for the Medicare rebate and Pharmaceutical Benefits Scheme refund payments in July 2016.

Despite a whole-of-government focus to reduce issuing cheques, the number of cheques being issued to taxpayers has not decreased as expected.

We are seeking insights from tax agents to understand:

• their perspectives on why cheques being issued is increasing
• how they manage the input and maintenance of financial institution account details for their clients within their practice
• ways the ATO can work collaboratively with the community to reduce cheques.

Tax agents

Feedback provided understanding of opportunities to reduce the number of cheques being issued to clients through tax agents.

Tina Markov, Client Account Services
tina.markov@ato.gov.au
Phone 08 8208 1428

To seek feedback on the proposed draft taxation determination prior to publication of the draft for public consultation.

The ATO is developing a taxation determination on deductions for fees paid for financial advice that will broaden and replace Taxation Determination TD 95/60 Income tax: are fees paid for obtaining investment advice an allowable deduction under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) for taxpayers who are not carrying on an investment business? which was originally released in 1995 and last updated in 2012.

The taxation determination will:

• set out the Commissioner of Taxation’s preliminary view on the deductibility of financial advice fees under sections 8-1 (deductions) or 25-5 (deductions for tax-related expenses) of the ITAA 1997 for individuals who are not carrying on a business
• provide more certainty to taxpayers and tax professionals on tax deductions for fees paid for financial advice.

See Advice under development – [4055] Financial advice fees.

• National Tax Liaison Group
• Financial services professional associations
• Financial advice providers

Feedback received is being considered for incorporation into the draft taxation determination.

Danijela Jablanovic, Individuals and Intermediaries
danijela.jablanovic@ato.gov.au
Phone 07 3213 5864

To seek feedback on and gauge interest in the use of Online services for agents practice mail messages to advise outstanding client lodgment and/or payment obligations and necessary actions to be taken.

The ATO currently makes phone calls to tax agents for each client that has an outstanding lodgment and/or payment obligation, often leading to multiple calls to the same agent.

The ATO is seeking feedback from participants who piloted receiving Online services for agents practice mail messages regarding outstanding lodgment and/or payment obligations. This digital interaction combines multiple clients with outstanding obligations in one message, in lieu of telephony contact for each client individually. The aim is to understand agents’ appetite for the use of this digital channel and identify any issues and/or opportunities with the process.

Tax agents who have multiple clients with outstanding lodgment and/or payment obligations.

Feedback confirmed the value of utilising digital platforms versus telephone interactions for managing outstanding debt and lodgment obligations, providing tax agents with an improved experience.

George Tsangari, Lodge and Pay
george.tsangari@ato.gov.au
Phone 08 7422 2770