Tax Profession Digital Implementation Group key messages 24 June 2022

Welcome and introduction

Co-chair Kerry O’Loghlin welcomed attendees and asked that any conflicts of interest be declared, none declared and reminded the group of confidentiality requirements.

Kerry welcomed new member, Jason Robinson, representative for CPA Australia.

Mike Behling welcomed members and highlighted the intention is to meet face-to-face again in the near future.

Action item update

The following item was closed during the meeting:

Updates were provided on the following items and will remain open.

General discussion

Michael Croker provided a summary from the recent Cyber Security Stakeholder Group meeting. The group discussed the importance of cyber security and the role of the ATO in influencing the buy-in and adoption of security measures.

Action item

ATO co-chair to consider how the ATO can contribute to raising cyber security awareness when engaging with online services and the client experience for those impacted by cybercrime.

Tax time 2022

Update on system changes

Matthew Musolino advised that enhanced prefill for bank interest was successfully deployed on 19 June 2022.

Key points highlighted included:

• The solution is intended to provide increased visibility of the data provided to the ATO and to shift behaviours for those deleting or changing prefill data.
• The change will only impact those who alter a prefill amount, requiring the agent to select from a list of reasons for the change.
• Whilst the use of prefill data cannot be mandated, it is highly encouraged and the provision of the data is intended to assist in the preparation of returns, and to highlight where further discussion with the client may need to occur prior to lodging.
• The ATO is still receiving data from third parties and delaying lodgment until mid to late July to confidently rely on prefill data is recommended.
• There is no requirement to upload any supporting documentation or notify the ATO of discrepancies.
• Agents may receive a follow up call from the ATO for further information if required.
• Agents can adjust the interest figure to $0 if a client advises the amount to be incorrect along with an adjustment reason and continue with the lodgment.
• The adjustment reason that is provided will be used by the ATO to identify trends which may require follow up action, including with third party reporters.

Member comments

A member advised that there was a group of practitioners who expressed frustration with the current treatment and prefill approach for managed fund income. Practitioners have to spend time matching prefill data to distribution statements, which is not a positive experience. The member indicated that discussion with the ATO co-chair to address the gap was in progress.

A DSP member acknowledged there was a known/formally registered issue on the DSP portal that sought to clarify the correct treatment of the managed fund income (and how it is shown in the prefill service). The member committed to providing the details to ATO co-chair for consideration.

A DSP member indicated there was some concern within the DSP community that the prefill process may evolve to having to upload documents to verify changes, which is not seen as a DSP service to provide.

The ATO acknowledged the concerns and confirmed that this proposal will feature as a broader conversation with DSPs.

A member queried whether there was a procedure that outlined how to resolve prefill discrepancies, for example, how to communicate this to the ATO?

The ATO advised that part of the consultation feedback, the solution has been designed to allow ‘in channel’ communication. Information outlining how to communicate with the ATO regarding prefill will be shared with members.

A member queried the use of the word ‘deterrent’ in the agenda item papers, asking whether it may lead to preventing changes to prefill data in the future.

The ATO confirmed the enhanced prefill solution is about deterring or cautioning someone in making a change to the prefilled data.

A member queried a change would prompt contact from the ATO on every occasion.

The ATO confirmed contact is not made for every change and that there are different triage and treatment options based on the risk and client.

Action items

DSP members indicated there was concern that the prefill system may evolve to having to include/send verification documents to the ATO for changed prefill amounts. The ATO confirmed that this is not the current approach and should this approach change in the future, agents and DSPs would be consulted. DSPs indicated a level of concern about possible future direction and wished to discuss further with the ATO co-chair.

A draft summary outlining the process for ‘in channel’ communication for changes to bank interest prefill will be shared with members.

Around the grounds

Members were invited to provide any insights or raise any concerns regarding Tax Time 2022:

• Whilst there were not legislative changes, there were technical changes that required DSPs to pick up new formats for schedules (fund income tax returns).
• There are 2 sets of instructions for the Research and Development schedule – the fields mean different things depending on when you lodge.
• Many agents are still supporting the business community in moving to Single Touch Payroll Phase 2, which is not something that should be underestimated.

Upcoming digital enhancements

Online services for agents deferral requests

Felix Manero provided an overview of how the ATO were seeking to optimise lodgment deferrals through self-service, acknowledging the link to ongoing work on addressing irritants in the system.

Members were guided through the accompanying presentation disseminated prior to the meeting.

Members were advised that this initial discussion and early engagement is the commencement of the co-design process. The group were asked to nominate to participate in further discussion via TPSG@ato.gov.auThis link opens in a new window

Member comments

Was the process envisaged to be available to all taxpayer types?

The ATO confirmed that it would be available to all taxpayer types as we are seeking to create the single-entry point and process to improve the experience.

Will Access Manager be used to apply access for staff?.

The ATO advised that this was a part of the co-design process and topics to be explored to determine what is fit for purpose.

Acknowledgement the service would be welcome and but how will the ATO be looking to distinguish between ATO versus agent assessed deferrals.

The ATO advised that as a part of this change a shift will be toward assessing requests based on risk and confirmed that the provision of clear guidance will be essential.

Action item

Members interested in participating in the co-design session should nominate via TPSG@ato.gov.auThis link opens in a new window

Agent – client linking, agent notifications

Kath Anderson provided an overview of the Authorised Client Linking program that commenced on 19 June.

Members were provided with an overview of the pilot program, intended to improve online security by ensuring only nominated agents can link to a client’s records and transact on their behalf in online services.

The pilot involved tailored engagement and communications with impacted agents and has been successfully deployed to the initial population. Any exceptions have been minor and resolved.

Meeting close

Members were asked if there were any other issues or concerns to raise.

Member comments

The Foreign Investment Review Board (FIRB) online portal/facility for tax clearance certificates appeared to be being developed as a standalone product, not linked to Online services for agents.

The ATO confirmed that it would identify a staff member who could discuss this with the group at a future meeting.

Action item

ATO co-chair to identify an ATO contact to discuss the FIRB portal/online facility for tax clearance certificates with members.

Members were thanked for their contributions and the meeting was closed.