Your feedback
This paper invites your feedback to inform the development of the National Tax Clinic program Grant Opportunity Guidelines.
Closing date for comment: 9 February 2024
Provide feedback by email to: ExpansionofNationalTaxClinics@ato.gov.au
Contact officer: Maryam Awan, phone 03 9247 0510
We encourage you to raise any relevant issues or concerns about matters discussed in this paper. Your responses may be made available to the public on the Australian Taxation Office (ATO) website unless you indicate that you would like all or part of your response to remain in confidence. Automatically generated confidentiality statements in emails do not suffice for this purpose. Confidential elements should be marked or provided in a separate document.
Purpose of paper
The ATO is seeking feedback to inform the development of the National Tax Clinic Grant Opportunity Guidelines in line with better practice according to the Commonwealth Grants Rules and Guidelines 2017External Link.
We are seeking your input into the development of the grant opportunity guidelines that will underpin the ongoing operation and expansion of the National Tax Clinic program to ensure it continues to meet the needs and expectations of the broader community.
We are specifically focused on receiving feedback to inform the assessment criteria used to assess applications under a competitive grant program.
This paper is targeted at all categories of stakeholders who are impacted by the National Tax Clinic program and seeks to gain their insights on how an ongoing program could be most beneficial and impactful.
Background
The National Tax Clinic program is an Australian government-funded initiative which serves the dual purposes of:
- offering tax support to unrepresented taxpayers who may not be able to access tax advice and assistance due to economic, social, or personal factors
- providing practical experience for students undertaking relevant studies in tax related disciplines under the supervision of a qualified tax professional at participating universities and TAFEs.
The National Tax Clinic program was first announced by the Australian Government in the 2019–20 Mid-Year Economic and Fiscal Outlook (MYEFO) after the success of a program trial that was undertaken throughout 2019.
The Australian Government extended the National Tax Clinic program for 4 years from the 2019–20 MYEFO announcement and tasked the ATO with transitioning the program to an open competitive grant program, increasing the available grant funds in later years to accommodate for the expected increase in potential grantees wishing to participate in the program.
Following the success of the 2021 National Tax Clinic program, tax clinics have seen a significant demand from small businesses and vulnerable client groups who benefit from the service.
Further expansion of the National Tax Clinic program was announced in the 2023 Federal Budget as part of a suite of measures designed to drive collaboration with small business to reduce the time spent complying with tax obligations. The measure is designed to improve access to the service for small businesses in hardship and other vulnerable groups by increasing the number of tax clinics by 5, expanding eligibility to TAFE institutions in regional areas.
About the National Tax Clinic program
The aim of the National Tax Clinic program is to provide funding to Australian educational institutions to operate an independent service, where unrepresented taxpayers can seek free tax assistance from students undertaking relevant studies in tax related disciplines under the supervision of a qualified tax professional.
The Australian Government did not set criteria for the clientele to be assisted by tax clinic participants, but instead provided general guidance that the participants should focus on supporting small businesses in hardship and other vulnerable groups who may not be able to use a tax practitioner due to economic, social, or personal factors. Discretion is given to each National Tax Clinic operator to select clients based upon their personal and financial circumstances while keeping within the aims of the program.
The 4 key activities of the National Tax Clinic program are:
- providing advice to clients to better understand the tax system
- representing unrepresented taxpayers and small businesses when they need to interact with the ATO
- undertaking educational activities to better inform students, taxpayers, and the broader community on matters of interest and concern
- advocating on behalf of clients when systemic taxation related issues are identified in their dealings with regulatory or government agencies.
Tax clinics may also conduct research on tax compliance behaviours of unrepresented / disadvantaged individuals and businesses.
Independent tax clinics provide a unique service distinct from other free services provided by the ATO to assist taxpayers in meeting their tax obligations, such as Tax Help, Pop Ups, Dispute Assist, and in-house facilitation.
The ATO does not operate the tax clinics, but rather manages the funding program and provides limited administrative support to the independent tax clinics.
The services offered by clinics and access to ATO online tools and products will vary depending on the registration status of qualified professionals supervising students.
|
Clinic supervisor/s registration status |
Operating model |
Services and accesses to ATO online tools and products |
|---|---|---|
|
Registered tax professionals who use their agent number for the operation of the clinic. |
Tax practitioner model |
Registered tax professionals may access ATO Online services for agents and use SBR-enabled accounting software to act as an authorised agent for clients. |
|
Registered legal professionals who use their practicing certificate for the operation of the clinic. |
Community legal service model |
Can represent clients as a legal professional.
May provide legal and tax advice to clients.
No access to ATO Online services for agents or SBR-enabled accounting software. |
|
Qualified supervisors who do not use their registered agent number or practicing certificate for the operation of the clinic. |
Tax advice model |
May act in the capacity to provide tax advice.
No access to ATO Online services for agents or SBR-enabled accounting software. |
The Australian Government has no preferred model under which a tax clinic should operate. Applicants are encouraged to tailor their tax clinic operating model to their specific circumstances and expertise.
The Australian Government provides a maximum amount of $100,000 per annum to successful applicants for tax clinic funding over a 3-year agreement period. Overall funding for successful applicants will not exceed $300,000.
Expansion of the National Tax Clinic program
As announced in the 2023 Federal Budget:
- The National Tax Clinic program will be expanded to improve access to the service for small businesses in hardship and other vulnerable groups by increasing the number of tax clinics by 5 from 1 January 2025.
- Grant eligibility will be expanded to include TAFE institutions to improve access to tax clinic services in regional areas.
- The ATO will deliver and maintain a dedicated tax clinic website to coincide with the expansion of the program.
The expanded National Tax Clinic program will continue to perform the identified key activities and serve the dual purposes of the program.
Stakeholder groups
The key stakeholder groups that have been identified, from which we would like to receive feedback, are:
- Academia – including current Tax Clinics and potential applicants that deliver training and education to students on matters including accounting, tax, and law.
- Students – who are undertaking relevant studies in tax-related disciplines and could undertake practical training in a tax clinic.
- Tax Profession – individuals, firms, and professional bodies who provide tax advice and assistance to fee paying clients.
- Clients – people who use the services of the National Tax Clinic program and organisations that provide other support to those people.
Other stakeholders including the Australian Government, ATO and the Inspector General of Taxation, and Taxation Ombudsman will be separately engaged in seeking feedback on the questions below.
Consultation questions
The ATO invites interested parties to lodge written submissions on the following questions. It is not necessary to respond to all questions.
1. Eligible National Tax Clinic clients
The Australian Government did not set criteria for the clientele to be assisted by tax clinics, but instead provided general guidance that clinics should focus on supporting small businesses in hardship and other vulnerable groups who may not be able to use a tax practitioner due to economic, social, or personal factors.
1.1 Question
What is your understanding of ‘small businesses in hardship and other vulnerable groups who may not be able to use a tax practitioner due to economic, social, or personal factors'? Provide as much detail as possible when responding.
2. Key activities of the National Tax Clinic program
Tax clinics undertake a range of broad key activities encompassing several services for clients. The key activities are:
- providing advice to clients to better understand the tax system
- representing unrepresented taxpayers and small businesses when they need to interact with the ATO
- undertaking educational activities to better inform students, taxpayers, and the broader community on matters of interest and concern
- advocating on behalf of clients when systemic taxation related issues are identified in their dealings with regulatory or government agencies.
Tax clinics may also conduct research on tax compliance behaviours of unrepresented / disadvantaged individuals and businesses.
2.1. Question
When assessing grant applications, what percentage weighting should be given to the following activities? Provide an explanation for your weighting. Responses should add up to 100%.
|
Activity |
Weighting percentage |
Explanation for Weighting |
|---|---|---|
|
Provide advice to clients to better understand the tax system |
- |
- |
|
Represent unrepresented taxpayers and small businesses when they need to interact with the ATO |
- |
- |
|
Undertake educational activities to better inform students, taxpayers, and the broader community on matters of interest and concern |
- |
- |
|
Advocate on behalf of clients when systemic taxation related issues are identified in their dealings with regulatory or government agencies |
- |
- |
|
Conduct research on tax compliance behaviours of unrepresented / disadvantaged individuals and businesses |
- |
- |
|
Total |
100% |
N/A |
3. Location of tax clinics
The National Tax Clinic program currently comprises of at least one tax clinic located in every State and Territory. There are 15 universities operating tax clinics across Australia, including one self-funded tax clinic. Thirteen tax clinics are in capital cities and 2 in regional centres. Several tax clinics have also established secondary locations or have undertaken outreach in regional communities.
3.1. Question
What factors should be considered when deciding the geographical spread of tax clinics?
Provide as much detail as possible.
4.Tax clinic model
The Australian Government encourages participants to develop tax clinic models that best suited their institution and intended clients. The services offered by clinics and access to ATO online tools and products will vary depending on the registration status of qualified professionals supervising students.
|
Clinic supervisor/s registration status |
Operating model |
Services and accesses to ATO online tools and products |
|---|---|---|
|
Registered tax professionals who use their agent number for the operation of the clinic. |
Tax practitioner model |
Registered tax professionals may access ATO Online services for agents and use SBR-enabled accounting software to act as an authorised agent for clients. |
|
Registered legal professionals who use their practicing certificate for the operation of the clinic. |
Community legal service model |
Can represent clients as a legal professional.
May provide legal and tax advice to clients.
No access to ATO Online services for agents or SBR-enabled accounting software. |
|
Qualified supervisors who do not use their registered agent number or practicing certificate for the operation of the clinic. |
Tax advice model |
May act in the capacity to provide tax advice.
No access to ATO Online services for agents or SBR-enabled accounting software. |
4.1. Question
As the National Tax Clinic program continues, do you think tax clinics should be able to develop different operating models to the above categories? If not, should there be a standard tax clinic model all participants must follow? Provide as much detail as possible.
5. Factors to be considered when assessing applications
5.1. Question
On a scale of 1–5, with 1 being not at all important to 5 being extremely important, how would you rate the following factors regarding their importance in selecting a successful tax clinic provider?
|
Factor |
Rating |
|---|---|
|
Presence of multiple tax clinics in the same geographical area |
- |
|
Geographical coverage of tax clinics across Australia |
- |
|
Amount of time a proposed tax clinic will be operational and available to clients |
- |
|
Number of students who will gain experience working in a tax clinic |
- |
|
Number of student hours a proposed tax clinic will fulfil |
- |
|
Existence of an established tax clinic, including past output |
- |
|
Type of activities a proposed tax clinic will undertake |
- |
|
Volume of activities forecasted that a tax clinic will undertake |
- |
|
Type of professional supervision for the proposed tax clinic |
- |
|
Ability to provide outreach services to rural and remote communities |
- |
|
Accessibility to vulnerable groups |
- |
|
QS World University Rankings |
- |
|
The requested grant funds to operate a tax clinic |
- |
|
Joint applications across various academic institutions |
- |
5.2. Question
In addition to the factors listed above, are there any other factors that should be considered when selecting applicants for the National Tax Clinic program? Why?
6. Measuring success
6.1. Question
On a scale of 1–5, with 1 being not at all important to 5 being extremely important, how would you rate the factors listed below measuring the value, impact and benefits of the National Tax Clinic program?
|
Information |
Rating |
|---|---|
|
Number of clients supported by the tax clinics |
- |
|
Client entity type, (that is, individual, small business) |
- |
|
Eligibility indicators of clients supported by the tax clinics (that is, financial hardship, non-English speaking background, homelessness) |
- |
|
Type of support being provided to tax clinic clients (that is, lodgment support, registration support, objections, tax debts) |
- |
|
Referral source (how did the client find the tax clinic) |
- |
|
Geographic location of clients supported by tax clinics |
- |
|
Time spent supporting clients of the tax clinics |
- |
|
Systemic taxation related issues and opportunities identified by tax clinics |
- |
|
Number of students participating in tax clinics |
- |
|
Time commitment from students |
- |
|
Time commitment from clinic supervisors |
- |
|
Number of community education events undertaken by tax clinics |
- |
|
Time spent conducting research |
- |
|
Research outcomes (where known) |
- |
|
Case studies highlighting the challenges faced by tax clinic clients |
- |
6.2. Question
In addition to the factors listed above, what other information do you think will help to measure the success of the National Tax Clinic program? Provide as much detail as possible.
7. General comments
7.1. Question
Is there anything you would like to bring to our attention regarding the development of the National Tax Clinic program Grant Opportunity Guidelines?