Modernising Business Registers Business Advisory Group key messages 20 July 2021

Welcome and introductions

Mary Arrowsmith opened the meeting and welcomed guests and members.

No conflicts were declared.

Farewell to Matt Sedgwick who is moving to Prime Minister and Cabinet after many years with Treasury and welcome to Matt’s replacement Kate Penney.

Program update

Harrison Lee conducted an out-of-session workshop on Information Services and Search Vision and Roadmap on 6 July. There were good discussions and feedback from those who attended. We will aim to report back at the next BAG subject to scheduling.

Mary acknowledged that several members are back in lockdown, recognising that it is a difficult time for members and their clients, as well as being in tax time and that we appreciate members time in attending these forums to provide input.

Director ID Private beta update

Tammy Gardner presented to members the closure report for Private beta phase 1, which was a success with 49 participants applying successfully for a director ID through the digital channel.

A few issues were identified during this time, however nothing to prevent starting phase 2.

Ashley Lock provided an update on phase 2, which started the week commencing 12 July with the phone lines being opened to non-digital applications. Ten participants have been successful, with two unsuccessful, due to document verification process.

One participant tried to obtain a director ID on behalf of a company, feedback is being considered and content reviewed to ensure our information packs are clearer.

Proof of record ownership (PORO) and myGov ID update

George Afarian, Product manager and lead for the ATO identity and access services provided members with an update on improvements to the director identification PORO solution.

The MBR program and the director ID application process has been designed to utilise ATO’s current systems and client record as a shared service.

The first iteration of the digital PORO solution was delivered to support the director ID private beta. It is currently modelled on the existing process of linking to the ATO in myGov.

We are in the process of making changes to the digital PORO service to leverage the strength of the identity verification process (introduction of biometrics in myGovID – IP3 facial recognition) and reduce the burden on users and address feedback raised in private beta.

We will continue to iterate the digital PORO services to ensure it does not impose unnecessary burden on users, whilst providing the right balance between usability verses security.

Member question – They are working with DTA on Australia Post identity and it is not too far away. When is the ATO planning to accept Australia Post identity and the associated risks? Mary advised that there is no date yet, but it is of interest. Treasury advised that it will be based on timing of legislation and government priorities.

Director ID

Onboarding strategy

Stefanie Heckman presented to members the challenges around onboarding the existing company directors, new directors appointed between 1 November 2021 to 4 April 2022* and all new directors appointed after 5 April 2022* (* transition periods are subject to confirmation by Government).

Engagement tactics for the different cohorts were discussed, that is light, moderate and high touch, along with an example with demographics of how we engage with very remote directors. Other groups would include - Self-managed Superannuation Funds, Directors of Not-for-profit groups, existing directors with no tax agent or Australian Securities and Investments Commission (ASIC) agent?

Guidance material interactive co-design session

An interactive session on guidance material for intermediaries and directors was held with members. As we had previously received feedback on key questions and the types of guidance materials required, this session was to gauge the information was pitched right and where this information would be available.

Source content was provided to ensure that the level of detail is hitting the mark, and how members would use this material.

Compliance update

Bradley Mueller advised members that the compliance update would complement the onboarding strategy to support directors in applying for a director ID.

During 2022, we will contact new directors by email or post on how to apply. If they have not responded to our initial contacts, phone contact will be made to ask why they are not applying. That is, missed onboarding opportunity, or some other kind of blocker.

A member noted correspondence should go to the agent, as this will prove for far better traction.

While the primary focus will be supporting people to apply, work will be done with regulatory and compliance teams, including ASIC Regulatory and ATO Integrated Compliance, to identify and treat egregious behaviours or deliberate avoidance regarding director ID obligations.

Preferred channel strategy

Due to timing this agenda item will be presented at the August meeting.

Wrap and close

Mary thanked everyone for their time and flexibility. We will continue to look at refining the agenda and out of session groups. Meeting closed at 12.00pm.