Modernising individuals' tools and calculators' project
The Individuals and Intermediaries (IAI) business line within the Australian Taxation Office (ATO) is currently reviewing the usage of a selected group of tools and calculators available on ato.gov.au for which it is responsible.
As part of this work, we are identifying potential opportunities to improve the experience for individuals, tax professionals, and other intermediaries.
Members emphasised that users struggle with tax language and need clearer, simpler wording in tools. They noted increasing AI‑driven misinformation among clients, highlighting the importance of reliable ATO tools.
Members said, some tools may be outdated, and members suggested reassessing their purpose to ensure each still meets a genuine need.
TPB’s branching project – an ATO perspective
The Tax Practitioners Board (TPB) has progressed its project for closing branch registered agent numbers (RANs) as part of a targeted regulatory action aimed at strengthening tax system integrity and improving transparency. This change ensures clients can clearly identify the registered practitioner responsible for their tax services.
Practices with branches can transition through a range of supported pathways, including consolidating into their parent RAN, establishing new legal entities to reflect existing structures, or adopting a hybrid approach utilising a combination of new entities and the parent RAN. The TPB and ATO are working closely with practices to support continuity during the transition.
More than 500 branch RANs have already been closed. Remaining branches continue to transition in collaboration with the TPB and ATO. Cancellations occur only after all client transfers are finalised to ensure continuity of service and maintain client protections.
Members noted that, for larger practices, consolidating branch RANs could increase administrative burden and reduce access controls. This is due to Online services for agents being a client management tool, not a practice management system, such as difficulties with listing clients, downloading client lists and controlling staff with access to clients.
MTAS 2027 - Compulsory trust beneficiary TFN reporting
The ATO provided an update on the proposed Modernisation of Tax Administration Systems (MTAS) 2027 reforms that would require trustees of closely held trusts to report beneficiaries’ tax file numbers (TFNs) through the trust tax return from 1 July 2026, subject to the passage of law.
Treasury released draft amendments for consultation on 17 December 2025, along with explanatory material, for consultation through their consultation hubExternal Link.
The ATO is working closely with digital service providers (DSPs) and stakeholders to understand user experience considerations and will provide targeted communication and guidance as the proposed changes progress.
Members expressed that the move to annual TFN reporting will ease timing pressures but will require clear ATO communication on withholding rules, exemptions and new validations. Members raised concerns around late detection of beneficiaries requiring applying for a TFN, low awareness among smaller agents of the obligations to withhold and the need for transparency around additional pre‑lodgment checks.
Client-to-agent linking project – proposed design for individuals and sole traders
We outlined various design options under consideration for the individuals and sole traders' solution. Members were supportive of the design solution that the ATO is now focused on. Members were pleased with the progress made so far and they emphasised the importance of maintaining clear visibility over client access settings, including keeping pop‑ups and override functions to manage de-linking issues involving administrative staff.
The ATO clarified that any solution developed for individuals and sole traders will not alter the existing process for Australian business number holders. Members were asked to consider this solution as the design continues to be refined, with members suggesting targeted education, potentially through tax associations, highlighting the need for timely communication once details can be shared.
Environmental scan
The co‑chair led a discussion on key insights, trends, and developments that the ATO should consider across DSPs and tax practitioners’ industries, including the following:
- emerging risks and impacts associated with AI technology and secure communications
- issues with activity statement notifications and recent Transport Layer Security changes
- errors and Online services for agents record‑locking
- Payday Super readiness and communication gaps.
Digital improvements framework reviewing and refreshing priorities
The ATO provided an update on the Digital Improvements Framework (DIF), which sets out a consistent approach for identifying, assessing and prioritising digital improvements that deliver the greatest value for tax professionals and the ATO. The group was advised that work is now focused on refining and prioritising a short list of potential new and existing DIF items to guide future investment.
Members appreciated the constructive shift toward focusing on small, high‑impact system changes and welcomed the increased transparency and collaboration being offered through the process.
Members highlighted practical improvements these small changes could address and stressed the need for better communication channels, real‑time status visibility and more secure two‑way messaging to reduce follow‑ups and improve workflow efficiency.
Other business
The group noted the following tabled papers:
- Payday Super
- Consult group update.
Members were reminded that the group is scheduled for a membership refresh this year, with further discussions to occur at the June meeting.