BAS agent communication
The Australian Taxation Office (ATO) explored with members ways to enhance communication with BAS agents, focusing on improving the value and delivery of the tax and BAS agent newsletters.
The potential of a combined newsletter was discussed with a dedicated BAS agent section being incorporated into the existing tax agent newsletter with practical and actionable insights included to help them better serve their clients.
Member comments
Valuable feedback on the current newsletters was provided, with the duplication of information and or articles highlighted. Suggestions for improvement to both the structure and content of the newsletter were given.
Agent authorisation - Individuals and sole traders
The ATO is undertaking consultation on an agent authorisation solution suitable for individuals and sole traders. We have been engaging with a diverse group of agent participants, professional association representatives and a group of individuals and sole traders to obtain their input and feedback.
Additional industry representative groups will be invited to participate as the consultation proceeds.
The initial consultation has focused on the digital solution rather than the end-to-end process. Consultation will continue with the next stages set to include testing and discussions for addressing the non-digital and support options, communications and the delivery plan.
Member comments
A preference for an agent-initiated approach and for the continued review of the delinking process was expressed. The ATO indicated they are looking into a feature to remove past agents from the client’s account.
Employer obligations
An update of key employer obligation changes and common mistakes made by employers was given including:
- The super guarantee (SG) rate will increase to 12% on 1 July 2025 and any payments made on or after this date will need to reflect the new rate.
- Employers changing to large withholder status will have been notified and will receive a new payment reference number. Large withholders no longer need to report PAYG withholding on activity statements.
- From 1 July, some withholding schedules and tax tables will be updated and employers should use the correct Tax tables, or the Tax withheld calculator to calculate how much to withhold from employee payments. Payroll software will need to be updated to ensure the right amount of tax is withheld, reported, and paid.
Common mistakes employers make when completing their Single Touch Payroll (STP) declarations are:
- not submitting a finalisation declaration by the due date, 14 July 2025 or finalising the incorrect financial year
- not submitting a finalisation declaration for all employees paid within the financial year
- not taking the correct steps when changing payroll software or payroll IDs, which results in unintentional duplication of income statements.
Members were reminded they can seek the ATO’s assistance when an employer has changed payroll software to avoid duplication of income statements.
Member comments
Concerns were raised around the letters being issued relating to SG and the lack of detail in them making it hard for an employer to understand. The ATO is aware of this feedback and are reviewing the letters.
Small business 'getting it right'
In November 2024, the ATO launched ‘getting it right’, an ongoing quarterly campaign which aims to support small businesses to get their tax obligations right from the start. Each quarter the ATO shares areas of concern that small businesses are getting wrong and provides help on how to address it. Giving them the opportunity to get their affairs in order, and an awareness of the consequences if they engage in the wrong behaviours.
The key focus areas for quarter 4, May to June 2025 were on building good habits to be ready for business and ensuring they meet their tax, employer, registration, and fringe benefits tax (FBT) obligations, including reporting and paying their FBT on time.
The key areas for quarter 1 (202526) included those operating outside the system or not complying with their tax obligations in the property and construction industry and on contractors omitting income.
The ATO will continue to support small business taxpayers to help them understand and meet their tax, super and registry obligations. Recognising and building good business habits is essential for small business to get it right from the start and stay on track.
We are interested in hearing from members on what ATO support is needed for them to better support their clients.
Member comments
Several topics for future fact sheets and myth busters that would benefit members small business and sole trader clients was suggested. The ATO agreed to consider these topics as part of the ongoing campaign.
Digital service delivery changes for Tax Time 2025
Updates to the digital service delivery because of Tax Time 2025 changes that impact BAS agents was provided. Key system changes will be available on ato.gov.au once finalised.
The following changes have been or are scheduled to be deployed in Online services for agents:
- The ATO app now includes a new communication history channel. When individuals register their device and receive secure push notifications, their agents will also receive real-time messages in Communication history via the ATO app for Bank Account changes only. Other transactions, such as tax lodgments, original and amendments and myGov overlinking, remain visible to tax agents only.
- Agents will be able to continue managing their clients tax affairs if the client has locked their ATO records.
- Pre-generated reports occurred in June and the newest reports introduced for tax time were visible on 1 July 2025.
Member comments
Concerns were raised regarding the timing of system shutdowns and members suggested changing the language used to advise of shutdowns, to highlighting the number of hours for them. The ATO acknowledged that while shutdowns are necessary for the preparation of Tax Time, we try to minimise the impact of agents not having system access during BAS agent lodgment periods. The feedback will be considered.
Enhancements to OTE guidance
The ATO provided an update on the upcoming enhancements to ordinary time earnings (OTE) guidance and subsequent promotional communication activities, noting that there is no change to the definition of OTE.
Following a review of the existing website content and guidance material, several improvements have been made including:
- enhancements and new practical examples added to the existing ‘list of payments that are ordinary time earnings’ page
- enhancements to the ‘how much super to pay’ page
- a new page which covers payments that are not OTE.
The enhanced content makes it clear to employers that in addition to their obligations under the Superannuation Guarantee Administration Act, they may have additional obligations to pay super under an industrial instrument, award/agreement.
The ATO intends to publish the new content on ato.gov.au in August 2025 and promotional communications will be delivered through the relevant newsrooms.
Member comments
Members acknowledged that there has been confusion surrounding the interpretation and implementation of OTE and are hopeful that the new guidance will provide greater clarity.
Environmental scan
Members led the environmental scan group discussion, covering a range of issues including:
- remission of general interest charge (GIC)
- Services Australia receiving near real-time STP data from the ATO
- Payday Super
- not-for-profit self-assessment
- artificial intelligence and the future of BAS agents
- false and misleading statements - Tax Agent Services Act 2009 requirements
- quarterly management systems (QMS) - members highlighted the current pressures on the industry in relation to the Tax Practitioners Board requirement to have the QMS implemented by 30 June 2025 and the impact this is having on lodgment backlogs.
Penalty and interest remission improvements
Feedback provided by tax practitioners and the professional associations regarding the interest and penalty remission process has been considered. As a result, we will be implementing several changes to streamline the application process and improve timeliness, consistency and transparency of decision making.
Member comments
Members suggested that the wording related to the low-risk GIC remission request process be reviewed to clarify the conditions surrounding it.
Feedback was provided regarding the accessibility of the remission request form, suggesting improvements to make it easier to locate and to clarify the parameters of certain questions.
The ATO has acknowledged feedback and will take it into consideration.
Member refresh and charter update
Discussions continued regarding the upcoming BAS Agent Advisory Group member refresh. An expression of interest process is scheduled to commence in October 2025, providing an opportunity for new members to join. To maintain continuity and preserve the group’s collective knowledge and experience, the transition of membership will follow a staggered approach. This approach aims to ensure a smooth handover and ongoing effectiveness of the advisory group.
The expression of interest application will be advertised on ato.gov.au, through the BAS agent Newsletter and via LinkedIn.
To ensure good governance, the group’s charter has also been reviewed. As the intent and scope of the group remains the same, the charter only has minimal changes.
Member comments
Members expressed support for the staggered approach, noting the benefits in maintaining group continuity. They also highlighted the value of diversity in the group, to which the ATO confirmed it will seek to ensure a broad representation for diversity.
Other business
The Super Health Check tabled paper was noted.