Online services for agents practice mail review
(Links to strategic priority 3 – Improve tax performance for clients of tax practitioners)
The draft key findings of the Online services for agents practice mail review were discussed. The review was to determine inbound requests, how the channel is used, what is working, what is not working and what improvements can be made. The Australian Taxation Office (ATO) noted that practice mail is working as designed but is not being used as intended. Topic/subject mismatches are requiring manual intervention, which delays processing and causes frustrations. The current system has limited 2-way communication capability between agents and the ATO. The importance of providing better 2-way communication was highlighted as something that would benefit both the ATO and agents.
Member comments
Members agreed that there are challenges with the subject/topic options and the lack of explanation provided to assist agents make the right choice. Members indicated that further work was needed in the ‘help’ section and improved education to support agents.
Members offered the ATO several potential improvement suggestions that could assist with confirming, directing and tracking messaging, all aimed at streamlining response timeframes. The ATO will investigate and determine any improvements that can be made to the existing practice mail service.
Under 40 tax professional digital services consultation
(Links to strategic priority 5 – Recognise, empower and support current and future tax practitioners)
In February 2025, consultation was conducted with younger (under 40) tax professionals. The consultation occurred via one-on-one interviews with active users of ATO digital services to inform decision-making around future enhancements to our digital services. Common issues identified were:
- client-to-agent linking
- inconsistent advice from ATO representatives
- usability of the ATO website – it’s easier to Google search
- content on ato.gov.au is too generic.
A common theme through the consultation was that younger professionals were interested in smarter/more connected digital solutions such as more APIs and tailored/customisable reports.
Member comments
Members suggested that the ATO should benchmark its services against corporate entities that offer personalised tracking. The ATO acknowledged this feedback, noting that as a government agency, it is subject to distinct regulatory and operational requirements that may limit its ability to meet similar expectations.
The ATO is relying on their website to communicate with tax professionals and the community. Due to difficulty navigating the ATO website, this messaging is often missed by those who use Google to locate information on the ATO website.
Members provided suggestions that could lead to potential improvements:
- the ATO should improve Google search functionality to complement their website
- finding a way to advise agents on when and why our webpages are updated.
Members were invited to provide any additional feedback regarding the consultation via tpsg@ato.gov.au
Modernisation of tax administration systems 2026
(Links to strategic priority 2 – Safeguard the security of the tax and super systems)
The modernisation of tax administration systems (MTAS) program is aimed at modernising ATO systems to allow for greater transparency over trusts and an improved lodgment experience for trustees and beneficiaries. It will provide greater support for correct reporting of trust income, aiding voluntary compliance.
The planned deliverables under the MTAS will see systems, process and data changes for trustees and beneficiaries to be deployed as part of Tax Time 2026 and Tax Time 2027.
For Tax Time 2026 this will involve the expansion of prefill data to include trust lodgment data for individual taxpayers, enhanced data checks for trust income tax lodgment through electronic channels and some changes to the trust income tax return to support prefill.
The ATO will consult with digital service providers (DSP) and impacted community stakeholders during the development and implementation.
Member comments
Members see value in the program of work and highlighted regular and early communication was key to implementation, and industry bodies played an important role for delivering messaging.
Regarding prefill, members clarified that prefill would not change business processes for tax agents who prepare the trust and beneficiary return. Prefill will increase their confidence that there is no more data/income to report, and it would benefit others especially where the trust tax return and the beneficiary income tax return are lodged by different tax agents, or the individual beneficiary return is self-prepared.
The ATO confirmed that there will be no change to trust lodgment dates but highlighted earlier lodgment will benefit the implementation of prefill.
Members were interested in having this item return regularly as it progresses.
Counter fraud program
(Links to strategic priority 2 – Safeguard the security of the tax and super systems)
The ATO provided an update on the uptake of the ATO app since the release of the new security features in June 2025.
Further updates were provided on the ATO’s observations across the external fraud environment since the release of the new ATO app security features in June 2025. Further enhancements to the ATO app currently underway were discussed.
The ATO asked members to outline the issues facing the DSPs community from a fraud perspective. This will form part of the ATO’s broader assessment of fraud risks associated with access to ATO services, both online and through software.
The ATO educated members on upcoming ATO app and Online services for agents releases to ensure appropriate awareness and support will be available at the time of the release.
Member comments
Members raised that proof of identity for agents is a frustration when the ATO reaches out, as agents may not have the necessary paperwork at hand.
The inability for clients to receive messages once they lock their account was raised as a concern. The ATO advised this will be investigated.
Members suggested the ATO use existing channels to embed services to support easy consumption by DSPs. The ATO will have further discussions with DSPs regarding this.
Digital improvements framework
(Links to strategic priority 1 – Protect the high levels of engagement and integrity in the tax system)
The ATO presented the digital improvements framework (DIF) to highlight the ATO's approach to managing improvements to their digital services. The DIF helps to prioritise items and, as of 3 September 2025, 11 items had been delivered and a list of further items are in progress. The items that have been delivered range in levels of complexity, from fixing typos to improved user experience and functionality updates.
Through a breakout session, new items were identified for potential inclusion on the DIF which the ATO will review and assess for feasibility.
Member comments
Members raised that they would like the ability to redact tax file numbers (TFNs) from reports in Online services for agents. The ATO is aware that some software providers already provide the function to redact TFNs. The ATO acknowledges the request from members for a similar offering to be provided in Online services for agents and will investigate further to determine if this is technically and/or legally possible.
Members asked if it was possible for the DIF to be published so that members can have visibility. The ATO noted that as the DIF work is not a formal program, it cannot be published.
Client-to-agent linking - design solution
(Links to strategic priority 2 – Safeguard the security of the tax and super systems)
The ATO is currently undertaking consultation on an agent authorisation solution that is suitable for individuals and sole traders.
The project team has been engaging with a diverse group of tax practitioners, professional association representatives, DSPs and a group of individuals and sole traders to provide input and feedback. Additional industry sectors and groups will be invited to provide their input and feedback as the consultation proceeds.
Next stages of consultation will include testing and discussions addressing support options, communications and the delivery plan.
Member comments
Members raised the possibility of the client checking the data the ATO has prefilled and then correcting as necessary during the nomination process. The ATO app has personal details for taxpayer which may also be used to confirm current details.
Environmental scan
(Links to strategic priority 4 – Increase trust and confidence in the tax and super systems)
The external co-chair led the group discussion on insights, trends, developments and direction that the ATO should be aware of as context for the operation of the tax system, these included:
- difficulties with principal authority trusts in the Australian Business Register
- not-for-profit reporting
- artificial intelligence.
Other business
The group received a verbal update on the Tax Profession Cyber Security Working Group and noted the following tabled papers:
- Tax Profession Digital Implementation Group Charter refresh and draft
- Travel policy
- DSP Strategic Working Group update.