Business

May 2025

June 2026

Consultation will commence in July

To identify, co-design, test and deliver contemporary digital solutions that will support progress towards a future digitalised tax experience for small businesses.

The ATO has a significant program of work underway to help small businesses get their tax right.

Central to this program of work is the creation of a digital tax experience where small businesses have access to digital tools, services and resources. We are progressing exploration of administrative initiatives to inform, test and evidence opportunities within a digitalised tax experience for small businesses. This is a key focus area of our 2024–25 corporate plan.

Stakeholder engagement is required to support co-design, development and implementation of these initiatives. Consultation will assist us to deliver contemporary digital solutions to enable a digital tax experience for small business.

• Professional associations
• Industry representatives and experts
• Stewardship groups
• Digital service providers
• Small businesses
• Financial institutions

Michael Morton, Small Business
Michael.Morton@ato.gov.au

December 2024

September 2025

Targeted consultation is underway.

To understand the implications of integrating the Cloud Authentication and Authorisation (CAA) model into the sending service provider (SSP) process and explore what support the ATO can provide impacted stakeholders to assist with the transition.

The SSP model was initially introduced to support the implementation of Single Touch Payroll (STP), providing an interim solution for digital service providers (DSPs) unable to integrate with Standard Business Reporting services.

The Cloud Authentication and Authorisation (CAA) framework is the current model used to establish a relationship between the software user and the Cloud based Digital Service Provider (DSP) and we’re looking to integrate with this model.

Changes will impact approximately 43,000 businesses currently utilising SSPs for STP submissions. Consultation will help us understand the implications of integrating the CAA model into the SSP process and identify the support we can provide to impacted stakeholders.

• Digital service providers
• Sending service providers
• Industry representatives
• Digital Service Provider Strategic Working Group

Kylie Johnston, Enterprise Solutions and Technology
DPO@ato.gov.au

February 2024

December 2025

Consultation is underway.

To explore opportunities to help small businesses calculate their pay as you go (PAYG) instalments based on current financial performance extracted from business accounting software.

The Modernisation of PAYG instalment systems measure was announced by the government in March 2022 in the Budget 2022–23 (PDF 3.83MB)Opens in a new window. Under the measure, companies can choose to have their PAYG instalments calculated based on current financial performance, extracted from business accounting software, with some tax adjustments. The intent is to improve alignment between PAYG instalment liabilities and profitability, and support companies in managing cash flows.

Small businesses can use software to manage their business operations and meet their tax obligations. The ATO is exploring how data within a small business’s natural digital accounting system could be leveraged to enable the calculation of PAYG instalments based on current financial performance, without the need for legislative change.

This is part of Improve small business tax performance, one of the key focus areas in the ATO corporate plan 2023–24. The ATO is collaborating with partners to build a digital-first tax ecosystem to enable seamless tax reporting from business source systems.

• Tax professional associations
• Digital service providers
• Financial technology providers
• Tax and BAS agents
• Small businesses

Michael Morton, Small Business
Michael.Morton@ato.gov.au