Digital improvements framework
The Australian Taxation Office (ATO) provided an overview of the work undertaken to progress improvements to digital services. Updates to the framework will be undertaken through a structured approach to identify, assess and prioritise improvements for tax professional digital services. The framework will be updated on a regular basis and shared with members to highlight the prioritisation of projects.
The ATO agreed to share a quarterly paper with the group regarding the progress being made.
Small Business 'Getting it right' engagement update
The ATO launched the ‘Getting it right’ program to share with small business and their agents, what the ATO is focusing on each quarter so they can take any necessary steps to ensure they are getting things right. The webpage was launched plus key messages with themes around:
- business income
- deductions
- concessions
- people operating outside the system
- building good habits.
The program is in its third quarter, which has had a particular focus on tax payment reporting system and moving a select number of businesses from quarterly to monthly activity statement reporting. Those moved to monthly reporting are demonstrating the most egregious behaviour.
Member comments
Members expressed a lack of clarity in the messaging around how businesses would be identified to switch from quarterly to monthly reporting. The ATO will take onboard feedback from the group to help ensure clarity of future messages.
Members provided feedback on potential future ‘Getting it right’ topics that would be useful, such as:
- contractor versus employee
- what is and is not capital
- instant assets write off
- small business rollover relief on capital gains tax.
Client-to-agent linking – individuals and sole traders
The ATO has commenced agent authorisation consultation (Client-to-agent linking for individuals and sole traders) as part of their broader program of work to strengthen the security of their systems and to protect taxpayer data.
We are consulting with a diverse group of tax practitioners, industry sector groups, professional associations and digital service providers to seek their input and feedback including consulting with individuals and sole traders on their experience and the usability of the system. This consultation aims to support the development of the design, change management, support requirements and delivery options.
Through the consultation undertaken to date, feedback received has been positive with some key themes around:
- ease of use
- streamlined as possible
- agent-initiated process as opposed to an individual initiated process.
The ATO highlighted it will consult on elements that it can, noting that there will be some elements of the design that are restricted due to system requirements, that will not be consulted on.
Member comments
Members raised the use of a driver’s licence as part of creating a strong myID. The ATO advised that this is being managed by another department and will provide updates as further information is available.
Members have asked to be kept updated and the ATO assured the group that discussions about the direction and progress being made would continue.
Counter fraud program
The ATO's counter fraud program (CFP) was created in response to the ongoing growth in fraud and identity crime in order to improve the ATO's capacity to prevent, detect, monitor and respond to fraud against the tax and superannuation systems. Giving taxpayers greater insight and control over their own data is a fundamental part of the CFP. Specifically, the ability to instantly verify activity on their account using a secure channel. These new security features will be delivered by the ATO through the ATO’s app, with the first functionalities anticipated to be made available in the middle of 2025.
The program is engaging with taxpayers and tax practitioners to develop and mature the outputs of the program.
Member comments
Members enquired as to whether entities could designate a nominated person to receive notifications and whether taxpayers may redirect communications via the ATO app to their agent. The ATO advised they are aiming for messages to reach the taxpayer in real time so they can take immediate action to protect their information. Tax professionals can see the messages sent to the individual through the ATO app through the client communications history.
Environmental scan
Members led the environmental scan group discussion, covering a range of issues including:
- payday super and the 7-day penalties
- ATO letters
- not-for-profit self-assessment reviews
- remission of general interest charge
- PAYG instalments
- credit card payments
- payment plans
- superannuation guarantee charge statements
- BAS agent newsletter.
Membership refresh
We will undertake a member refresh of the group, the BAS Agent Advisory Group. Current members were advised that in line with the updated charter, members are appointed for a 2-year term with the opportunity to apply for another 2-year extension before they are required step down, for a 2-year period before being able to reapply.
Professional associations will have a standing position in the group.
The membership refresh is about ensuring good governance and ensuring diversity around the ATO’s consultation processes. Further details will be provided at the next meeting, with the intent for the refresh to occur later this year.
Member comments
Members noted the benefits of having new members brought into the group as it brings new ideas, and that consideration should be given to long term members.
Members observed that it would be beneficial to ensure there is support for new members being onboarded to orientate them into the group.
Other business
The group noted the following tabled papers:
- taxable payments reporting system
- login process for online services.