Priority improvements – Improving consistency in advice and process (debt management)
Members were taken through a session on the Australian Taxation Office (ATO) evolving approach to debt recovery, payment plans, and concessions.
The ATO’s strategic focus is on improving payment rates and reducing small business debt, referencing the Australian National Audit Office audit of ATO management of small business collectable debt and the need to balance support for taxpayers with effective debt management.
Members discussion included:
- Payment plans, with a focus on the tailored payment plans offered as part of the ATO fuel response. These plans included no upfront payment, a 3 year term, and general interest charge remission conditional on lodgments being brought up to date. Insights from adherence with these plans will inform further considerations on payment plans.
- Matters under consideration within the concessions review. Covering the guiding principles, the importance of fairness, legislative constraints, and the need to ensure concessions are available at the right time to support taxpayers who need additional help to get back on track.
Member comments included:
- concerns about the rigidity of payment plan terms
- the importance of allowing renegotiation, and the need for more nuanced approaches to accommodate the realities of small business cash flow
- the need for better reporting tools, such as an overdue tax report for agents.
Mid-point check in – Tax Ombudsman recommendations for the registered agent phone line
The ATO led a discussion on improving ATO communication with tax practitioners, covering the development of a partnering approach, segmented engagement model, review of the tax professionals' newsletter, implementation of the open forum resource hubs, and the need for targeted, relevant, and accessible information.
Discussion included:
- The ATO’s intention to formalise its approach to partnering with tax professionals and their associations, which clarifies roles, responsibilities, engagement methods and how we will partner together which aligned with the ATO’s broader strategy.
- The establishment of a dedicated Tax Practitioner Engagement, Communication and Speaking Events team, which will ensure a more coordinated and agent focus approach to engagement that reflects the diversity of the profession.
- Current work been undertaken to enhance support content for practitioners on ato.gov.au.
- Continuing to enhance our ATO open forums and tax professional livestreams that has included the introduction of a resource hub with
- recorded sessions
- greater opportunity to ask questions
- certificates
- the shift towards more topical, focused live streams and forums.
- Planned consultation of the newsletter that will look to
- understand the needs of the profession
- increase the current low open/click through rates
- the best cadence for delivery
- identify opportunities on how critical information is delivered through current and potential future channels, including Online services for agents banners and targeted social media
- the role of associations in disseminating information, and the importance of reaching practitioners not affiliated with associations.