2022 Completed matters

To seek feedback regarding implementation of the new Sharing Economy Reporting Regime including:

• public advice and guidance
• reporting requirements (data and lodgment).

Schedule 2 of the Treasury Laws Amendment (2022 Measures No. 2) Act 2022External Link requires operators of electronic distribution platforms (EDPs) to report information to the ATO on transactions relating to supplies made through the platform. This measure implements a recommendation of the report of the Black Economy Taskforce.

Under the measure, EDP operators will be required to report transactions that occur on or after:

• 1 July 2023 if it relates to a supply of taxi services or short-term accommodation, and
• 1 July 2024 for all other reportable transactions.

• Operators of EDPs in the taxi, ride sharing and short-term accommodation industries
• Professional associations
• Technical and peak industry bodies
• Tax professional associations

Feedback from consultation provided valuable insights in the development of the Implementation Guide, XML Schema, Legislative Instruments and Explanatory Statement to support Tranche 1 industries with the implementation of the Sharing Economy Reporting Regime.

Vanessa Kelly, Small Business
vanessa.kelly2@ato.gov.au
Phone 02 4223 2851

To test tone and clarity of messaging in a proposed letter to military veterans impacted by changes to the tax and superannuation treatment of specific invalidity benefit payments.

Due to the Full Federal Court decision in Commissioner of Taxation v Douglas [2020] FCAFC 220 (the Douglas decision), the tax and superannuation treatment of specific invalidity benefit payments has changed.

Those affected by the Douglas decision can request remediation to previous year tax assessments through the objection process.

• Tax agents who have military veteran clients who are impacted by the Douglas decision
• Veteran advocacy groups

Consultation provided valuable feedback that has improved the clarity of the letter. Feedback will also contribute to some key changes to website content.

Simon Dann, Objections and Review
simon.dann@ato.gov.au
Phone 07 3149 5754

To seek feedback on the proposed process for Next 5,000 comprehensive risk reviews that are planned to commence in early 2023.

As part of the Next 5,000 program, the ATO will be commencing comprehensive risk reviews in early 2023. These reviews will be a new type of engagement using a risk based approach undertaken by the program, and will complement our existing streamlined assurance reviews.

Tax professionals who engage with the Next 5,000 program

Feedback was considered and incorporated into the process for the Next 5,000 comprehensive risk reviews.

Ashleigh Larner, Private Wealth
ashleigh.larner@ato.gov.au
Phone 08 9268 0901

To explore tax agent views on:

• the level of awareness individual clients have in their superannuation
• appetite to undertake a super health check with individual clients, including during preparation of income tax returns
• tools and resources the ATO could provide to assist with super health check conversations.

Research shows that up to 70% of individuals do not regularly manage their super or check that it’s in order. The ATO would like individuals to have greater awareness about their basic super entitlements and take more ownership and interest in their super earlier and is exploring how we might encourage this.

Tax agents with individual clients

Feedback indicated that individuals’ awareness of superannuation could be improved and that tax time interactions would be a good time for a super health check, which tax agents would undertake with their clients if provided with the necessary support from the ATO. Insights will inform our work on this strategy in the future.

Tara Rischmueller, Superannuation and Employer Obligations
tara.rischmueller@ato.gov.au
Phone 08 8208 2935

To:

• co-design a roadmap to digitalise the tax experience for small business in ways that improve small business tax performance and provide value back to small business
• explore concepts to streamline the tax experience.

Improve small business tax performance and participation by collaborating with partners to build a digital first tax ecosystem, enabling seamless tax reporting from business source systems, is one of the key focus areas in the ATO corporate plan 2022-23.

The aim is to develop concepts that will:

• improve small business tax performance
• create productivity savings for small businesses
• deliver economy wide value from increased permission-based standardised data sharing
• increase participation in and integrity of the tax ecosystem.

• GST Stewardship Group
• Small Business Stewardship Group
• Tax Practitioner Stewardship Group
• BAS Agent Association Group
• Digital Service Provider Strategic Working GroupExternal Link
• Tax and BAS agents
• Small business owners
• Digital service providers
• Financial technology providers
• Financial institutions

Consultation provided valuable feedback which:

• contributed to development of the draft Roadmap to Tax Admin 3.0 for small business
• will be considered in the identification of concepts to streamline the tax experience
• has enhanced ATO's understanding of the need to ensure changes to technology and the role of people and business processes are integrated, to collectively improve small business tax performance for successful digitalisation of tax administration.

Andrew Watson, Small Business
andrew.watson@ato.gov.au
Phone 08 8208 1826

To understand the retirement village life-cycle (including income tax, GST and commercial aspects) to identify:

• if existing advice and guidance supports taxpayers to meet their obligations
• opportunities to improve the operation of the tax system.

The retirement village industry has materially evolved over the last few years with significant expansion in the sector. The ATO is seeking to understand the impacts.

• Representatives of industry associations who are connected with or have expert knowledge of retirement villages
• Tax and legal professionals

Feedback provided has informed the ATO’s understanding of the retirement village life cycle. These insights will be taken into account in informing potential future engagement with the industry and its advisers.

Rosie Cicchitti, Private Wealth
rosie.cicchitti@ato.gov.au
Phone 07 3213 8073

To seek feedback on the practical application of Practical Compliance Guideline PCG 2018/4 Income tax - liability of a legal personal representative of a deceased person.

The Inspector-General of Taxation and Taxation Ombudsman published the Death and Taxes: An Investigation into ATO systems and processes for dealing with deceased estatesExternal Link report on 7 July 2020.

Part (b) of recommendation 10 in the report recommended that the ATO conduct a post-implementation review of the PCG, in consultation with external stakeholders, to assess its effectiveness in providing sufficient certainty for legal personal representatives to finalise an estate.

• Tax and law professional associations
• Tax practitioners
• Public trustees

Feedback received is being considered for incorporation into the updated Practical Compliance Guideline

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

To understand the capital gains tax (CGT) tools and calculators user experience to identify opportunities for improvement.

The ATO has multiple CGT tools and calculators to support taxpayers in determining their CGT for lodgment of their tax returns.

The ATO is undertaking research to:

• understand current issues, irritants, experiences and behaviours to optimise future CGT tool solutions
• identify opportunities to expand the use of ATO held CGT data to improve the taxpayer experience and compliance in reporting and calculation of CGT gains and losses.

• Individual taxpayers
• Tax practitioner representatives

Consultation provided valuable feedback which will be considered in the development of enhancements to CGT tools and calculators.

Dejan Markov, Enterprise Strategy and Design
dejan.markov@ato.gov.au
Phone 08 8208 3608

To test tone and clarity of messaging in a proposed superannuation guarantee charge letter to businesses and tax practitioners.

If employers do not pay an employee's minimum superannuation amount on time and to the right fund, they must pay the superannuation guarantee charge to the ATO.

The ATO engages with employers who are not meeting their superannuation guarantee obligations and/or their tax practitioners.

• Small to medium business employers
• Tax practitioners

Feedback provided will be incorporated into the superannuation guarantee charge letter in future communication to clients.

Kate Haymes, Enterprise Strategy and Design
kate.haymes@ato.gov.au
Phone 07 3119 9866

To seek feedback on proposed Legislative Instruments and Explanatory Statements for the implementation of the FBT reduced record keeping budget measure, as published with the Fringe benefits tax - record keeping exposure draft legislationExternal Link consultation on treasury.gov.au

The Fringe Benefits Tax — reducing the compliance burden of record keeping measure was announced the in the 2021–22 Budget.

The measure will provide the Commissioner of Taxation with the power to allow employers to rely on existing corporate records as an alternative to existing requirements. This will reduce compliance costs for employers, while maintaining the integrity of the FBT system.

For consultation on the associated legislation, see Fringe benefits tax - record keeping exposure draft legislationExternal Link on treasury.gov.au

• Fringe Benefits Tax Stakeholder Group
• Department of Defence
• Department of Social Services

Feedback will be considered in finalisation of the legislative instruments and explanatory statements.

Philip Borrell, Superannuation and Employer Obligations
philip.borrell@ato.gov.au
Phone 02 6058 7881

To co-design the lodgment deferral process in Online services for agents and test the functionality prior to implementation.

The ATO is expanding Online services for agents services to include lodgment deferrals.

The intent is to:

• streamline the lodgment deferral request process
• decrease request processing timeframes
• provide visibility of the progress of requests.

• Tax practitioner representatives
• Digital service providers
• Members of  
  • BAS Agent Association Group
  • Lodgment Program Review Working Group
  • Tax Profession Digital Implementation Group
  • Tax Practitioner Stewardship Group

Consultation provided valuable feedback which contributed to the design and build of the service and support material.

Felix Manero, Individuals and Intermediaries
OSfALodgmentDeferrals@ato.gov.au
Phone 07 3213 3552

To seek insights to inform guidance that will assist taxpayers in the calculation of their working from home deductions for 2022–23 and future income years.

The temporary shortcut method was introduced to assist taxpayers to work out their working from home deductions between 1 March 2020 and 30 June 2022.

With the cessation of the shortcut method, the ATO is refreshing the fixed rate method for calculating work from home deductions.

• Tax Practitioner Stewardship Group
• National Tax Liaison Group

Feedback was considered for incorporation into Draft Practical Compliance Guideline PCG 2022/D4 Claiming a deduction for additional running expenses incurred while working from home - ATO compliance approach which was published for public consultation on 2 November 2022.

Lloyd Williams, Individuals and Intermediaries
lloyd.williams@ato.gov.au
Phone 02 6216 1030

To test the tone and clarity of Tax Time 2022 communications for individual taxpayers.

Tax time communications provide taxpayers with guidance to help get it right when preparing their tax return.

The ATO is user testing the communications for individual taxpayers to identify opportunities for refinement to improve the user experience. 

Individual taxpayers 

Feedback provided is being incorporated into future tax time communications to individual taxpayers.

Kate Haymes, Enterprise Strategy and Design
kate.haymes@ato.gov.au
Phone 07 3119 9866

To test the design and functionality of the proposed design of the Modernising Business Registers (MBR) program companies release to identify opportunities for refinement to improve the user experience prior to implementation.

The companies release is part of the modernisation of business registers program, a component of the package of reforms to address illegal phoenixingExternal Link that was announced by government in September 2017 and received Royal Assent on 22 June 2020.

The companies release will provide over 3 million companies with a more streamlined way to register, view and maintain company details using ABRS online.

Consultation will be through a series of phases covering the ABRS website, company registrations, maintenance, and search.

• Community who may use ABRS
• Directors and intending directors
• Company officeholders
• Company administrators and intermediaries
• Tax practitioners
• Business representatives
• Government agencies
• Modernising Business Registers Business Advisory Group
• Modernising Business Registers Design Working Group

Consultation is discontinued. The Hon Stephen Jones MP, Assistant Treasurer and Minister for Financial Services, has announced the cessation of the Modernising Business Registers (MBR) program. The decision follows the Independent Review of the MBR program which was completed in July 2023.

Jonathan Solomon, MBR Program
mbrengagement@ato.gov.au
Phone 07 3213 3183

To seek feedback on the Taxpayers’ Charter.

The ATO is committed to undertaking a regular review of the Taxpayers’ Charter to ensure it remains contemporary and:

• meets community expectations about how the ATO engages with taxpayers in its administration of the tax, super and registry systems
• accurately reflects what our clients can expect from the ATO when dealing with us
• assists staff in their interactions with our clients
• fulfils its purpose of advising the public of their rights when dealing with the ATO.

The Charter should continue to support the ATO’s aim to build taxpayer confidence in the Australian tax and superannuation systems by helping people understand their rights and obligations, improving ease of compliance and access to benefits, and managing non-compliance with the law.

The Inspector-General of Taxation and Taxation Ombudsman made a series of recommendations on the Charter in its 2020–21 Investigation into the effectiveness of ATO communications of taxpayers’ rights to complain, review and appeal.

• Taxpayers
• Industry associations
• Professional associations, including those representing    
  • business sectors
  • tax and bookkeeping professionals
  • culturally and linguistically diverse audiences
• Members of the    
  • GST Stewardship Group
  • Individuals Stewardship Group
  • Large Business Stewardship Group
  • National Tax Liaison Group
  • Not-for-profit Stewardship Group
  • Private Groups Stewardship Group
  • Small Business Stewardship Group
  • Superannuation Industry Stewardship Group
  • Tax Practitioner Stewardship Group

A high volume of feedback, mainly from accounting, legal, and diverse audiences, identified opportunities to improve the Charter. All feedback will be considered for incorporation into an update of the Charter.

Chris Cook, ATO Corporate
chris.cook@ato.gov.au
Phone 02 6216 6355

To seek insights into agents’ experience and understanding of their role in the integrity of the Enterprise Client Register.

The Enterprise Client Register is the key source of client information used in every client interaction across the ATO.

The ATO will:

• explore differing agent business models and any impact on updating client contact details
• seek to understand the intermediary experience with client contact details
• identify opportunities to improve the user experience.

• Tax agents
• BAS agents

Consultation provided valuable insights into the Enterprise Client Register user experience and identified opportunities for improvement.

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

To seek feedback on the advance pricing arrangement (APA) program.

We will be undertaking a review of the APA Program in 2022, with a primary focus on:

• whether the APA product continues provide the right service for all taxpayers
• assuring transfer pricing risk in the most efficient manner possible.

• Taxpayers
• Tax advisory firms
• Tax industry associations
• Other APA program participants

Feedback provided valuable insights which will be used to guide further improvement of the APA Program.

Tien Phan, Assistant Commissioner, Public Groups and International
tien.phan@ato.gov.au
Phone 03 8632 5283

To seek input and insights on a proposed Automatic Exchange of Information (AEOI) self-review guide and toolkit for Reporting Financial Institutions.

The guide will assist and support Reporting Financial Institutions to self-review their internal control framework to ensure they meet AEOI compliance obligations, which cover Common Reporting Standard and Foreign Account Tax Compliance Act obligations.

It will include practical guidance for self-review of core elements:

• AEOI governance
• due diligence
• reporting systems
• data testing.

• Tax practitioners
• Financial institutions

Feedback received was considered and incorporated into the AEOI Self-review guide and toolkit.

Jaydon Beatty, Public Groups and International
jaydon.beatty@ato.gov.au
Phone 02 6216 4158

To seek feedback on:

• the ATO’s preliminary position regarding deductibility, under Division 31, when a conservation covenant is entered into to satisfy environmental approvals for a mining project
• whether public advice and guidance is required and the type of guidance.

Division 31 of the Income Tax Assessment Act 1997 provides for a deduction for the decrease in the market value of land when a perpetual conservation covenant over your land is entered into provided certain conditions are satisfied.

Deductions for the decrease in the market value of the land must be based on a valuation obtained from the ATO.

Valuation requests from taxpayers, in the energy and resources sector, have raised questions about whether taxpayers entering a conservation covenant, to meet environmental approval conditions for mining projects, receive material benefits which would disqualify them from receiving a deduction.

Energy and Resources Working Group

Feedback will be used to guide our communication strategy relating to valuation requests for conservation covenants from Energy and Resources Working Group members.

John Churchill, Office of the Chief Tax Counsel
john.churchill2@ato.gov.au
Phone 03 6221 0258

To seek insights from eInvoicing users and their intermediaries to inform future messaging and engagement activities related to raising awareness and driving adoption of eInvoicing across Australia.

The ATO is leading activities to raise awareness and drive adoption of eInvoicing in Australia. This includes working with businesses, intermediaries, service providers, and all levels of government to understand their current invoicing processes and support them in adopting eInvoicing to realise the economic benefits of eInvoicing.

The ATO will:

• seek to understand the current invoicing process for all stakeholders
• establish current knowledge and awareness levels
• develop supporting materials for various segments and validate their effectiveness.

• Small to medium enterprise businesses
• Tax professionals
• Digital service providers

Feedback provided will be used to shape the ATO’s eInvoicing awareness activities and messaging with intermediaries and small businesses. Insights will also be communicated to accounting software providers to improve future user experiences.

Patrick Brophy, Enterprise Solutions and Technology
patrick.brophy@ato.gov.au
Phone 02 6216 1940

To seek feedback on ATO reporting of undisputed tax debt data.

The Inspector-General of Taxation and Taxation Ombudsman (IGTO) published the Investigation and Exploration of Undisputed Tax Debts in AustraliaExternal Link report on 30 June 2021.

The ATO is engaging with external stakeholders in reference to IGTO proposed Recommendation 1 to co-design enhanced reporting. This includes identifying additional debt related data that may be informative and useful to key stakeholders and relevant participants in the tax system.

Members of:

• GST Stewardship Group
• Individuals Stewardship Group
• Private Groups Stewardship Group
• Small Business Stewardship Group
• Superannuation Industry Stewardship Group
• Tax Practitioner Stewardship Group

Feedback will help shape recommendations made to progress enhanced reporting and provided valuable information on the types of additional debt related data which may be informative and useful if released publicly.

Jasmine Bradshaw, Lodge and Pay
jasmine.bradshaw@ato.gov.au
Phone 07 3853 4101

To seek insights to inform the design and build of Online services for foreign investors (formerly known as the Foreign Ownership of Australian Assets Register).

The ATO is developing Online services for foreign investors which will replace and expand upon the existing Foreign Ownership of Water Entitlements Register and Foreign Ownership of Agricultural Land Register. This supports reforms to Australia’s Foreign Investment Framework.

Consultation will consider:

• navigation
• functionality – including but not limited to payments, registration, and maintenance of registration
• usability.

• Foreign persons, or their representative, who apply to acquire or register ownership of foreign assets on their own behalf or for entities
• Solicitors and conveyancers registering for clients

Consultation provided valuable input into the design and build of Online services for foreign investors, as well as shaping the information that will be included in web content and communications.

Rebecca Northey, Public Groups and International
rebecca.northey@ato.gov.au
Phone 02 4923 1900

To seek feedback on paragraph 5 of the Law Administration Practice Statement PS LA 2011/21 Offsetting of refunds and credits against taxation and other debts to provide greater clarity to support ATO staff decision-making and to support taxpayers in self-assessing whether requesting such an offset is appropriate.

Paragraph 5 of PS LA 2011/21 provides guidance to ATO staff where a taxpayer requests to have their refund or credit offset against the tax debt of another entity.

The current guidance does not provide assistance in determining the circumstances in which the criteria would be satisfied for the Commissioner to agree to perform such an offset. For instance, in practice we think it would be rare that paying the refund in this manner would be an efficient, effective, economical and ethical use of public resources for which the Commissioner is responsible.

Tax advisory firms

Feedback provided valuable insights and suggestions for potential improvements to our guidance.

Renae Carter, Small Business
renae.carter@ato.gov.au
Phone 02 9374 2942

To identify, prioritise, and address administrative and interpretative issues that require support to implement the new Corporate Collective Investment Vehicle (CCIV) measure.

In the 2021–22 federal Budget, the Australian Government announced that it will progress the tax and regulatory framework for the CCIV with a commencement date of 1 July 2022.

The new legislation aligns the tax framework for the CCIV regime with the tax regime for attribution managed investment trusts (AMITs). CCIVs will be required to meet similar eligibility criteria as managed investment trusts (MITs). This includes being widely held and engaging primarily in passive investment activities. CCIVs that are not eligible for AMIT tax treatment will be subject to the ordinary trust taxation rules in Division 6 or trading trust rules in Division 6C, as applicable, of the Income Tax Assessment Act 1936.

As a CCIV is a new corporate entity, deemed to be a trust for tax purposes, there are a range of administrative considerations and tax interaction issues to resolve to ensure implementation by 1 July 2022; for example, registration, eligibility, distributions, reporting.

• Advisers with significant managed fund experience
• Representatives from industry associations, including    
  • Financial Services Council
  • Property Council of Australia
  • Law Council of Australia
  • Australian Custodial Services Association

Consultation:

• facilitated identification of operational and administrative issues and provided valuable feedback which contributed to the design and build of the tax administrative framework and support material for the CCIV regime
• provided valuable insights on interpretive issues which will be further considered in the development of public advice and guidance.

Blake Sly, Public Groups and International
blake.sly@ato.gov.au
Phone 02 4923 1814

To understand the impacts that the government announced reform will have on self-assessing income tax exempt not-for-profits (NFPs) and co-design the lodgment process.

Currently NFPs who self-assess their own eligibility for income tax exemption are not required to report their eligibility to the ATO.

In the May 2021–22 Budget, the Australian Government announced reforms to the administration of NFP entities that self-assess as income tax exempt. From 1 July 2023, non-charitable NFPs with an active ABN will be required to lodge an annual self-review return to access income tax exemption, submitting the information they ordinarily use to self-assess their eligibility for income tax exemption.

The ATO will explore:

• how NFPs currently self-assess income tax exempt eligibility
• impacts of the changes on NFPs
• expectations for implementation
• support and guidance NFPs will need through the change.

The ATO will consult the sector to:

• user-test and iteratively refine the new annual self-review return
• co-develop practical support and refresh public guidance

validate the ATO’s administrative approach.

• NFP entities
• NFP advisory associations
• NFP sector peak body associations
• Tax professionals
• Tax professional associations
• Not-for-profit Stewardship Group

Members of the Tax Practitioner Stewardship Group

The consultation objectives to understand sector impacts and co-design the lodgment process have been successfully achieved. As a direct result of insights and co-design feedback the following enhancements to the taxpayer experience have been implemented:

• streamlining the NFP self-review return from over 20 questions to 5 core questions to determine eligibility for an income tax exemption
• introducing tailored and guided logic and help text to make the return easier to complete
• providing an alternative self-help phone lodgment service for NFPs having trouble accessing the digital return in Online services
• additional time to lodge through to 31 March 2025
• transitional support for taxable NFPs, including
  • concessional due date to lodge and pay income tax return
  • remission of general interest charge and penalties
  • flexible payment plans
  • support to reconstruct tax records
  • focusing on lodgment of the 2023–24 income year and onwards, noting we may take compliance action if we identify deliberate past tax evasion or fraud
• introducing a new non-lodgment advice form for taxable NFPs to meet their income tax return reporting obligations
• providing an NFP governance checklist to assist NFPs in meeting their broader tax and super obligations.

Lodgment data and feedback from the NFP sector have validated that the return is straightforward and takes less than 10 minutes to complete. However, the sector continues to experience challenges updating their Australian business number details and setting up myID and Relationship Authorisation Manager to access the digital return.

The next phase of consultation will focus on supporting the digital onboarding of the sector and lodgment education and support.

Jennifer Moltisanti, Small Business
jennifer.moltisanti@ato.gov.au
Phone 03 9285 1711

To explore the emerging models of Build-to-rent developments in Australia to understand the opportunities to support the industry with their tax obligations.

Build-to-rent is forecast to take off over the next 5 years.

We are seeing growing interest from industry and government with incentives and concessions for Build-to-rent developments increasing.

• Members of the    
  • Property and Construction Stakeholder Relationship Forum
  • GST Stewardship Group
• State Government representatives

Consultation provided valuable insights into the Build-to-Rent industry, highlighting the complexity and improving ATO's understanding of the various Build-to-Rent models and associated tax issues.

Peter Chester, Private Wealth
peter.chester@ato.gov.au
Phone 07 3213 5957

To co-design Digital Services Gateway (DSG) features and Application Programming Interfaces (APIs).

The DSG was implemented in 2021 to enable lightweight APIs to support digital service providers deliver tax and superannuation services.

Digital service providers

Digital service providers shared valuable insights which contributed to the development of DSG APIs.

Sonia Lark, Digital Partnership Office, Enterprise Solutions and Technology
sonia.lark@ato.gov.au
Phone 02 4725 7460