Modernising Tax Administration Systems Tax Time 2027 changes
(Links to strategic priority 5 – Recognise, empower and support current and future tax practitioners)
As part of Tax Time 2027, significant changes will be introduced to the Trust Tax Return and Trust Income Schedule to improve data quality and usability:
- New labels
- capture specified individual details in Family Trust Election and Interposed Entity Election section
- add 10 new labels to the Statement of Distribution, building on the 3 labels introduced in Tax Time 2026.
- Form redesign – The Statement of Distribution will be restructured to group related information logically and improve user experience.
To support data integrity, interactive validations will be implemented for digital lodgments from Tax Time 2027 to check data against ATO records at submission and return warnings or errors for correction before finalisation. This approach is intended to reduce compliance risks and improve accuracy.
Member comments
Members supported the changes and raised some queries around historical data for unpaid present entitlements and requested clearer instructions and clear guidance during the transition.
The ATO committed to providing clear instructions.
Small Business Future Tax Administration
(Links to strategic priority 6 – Improve Small Business performance and level the playing field)
On 4 July 2025, 30 regulators and 8 portfolio departments with a key role in improving productivity and supporting Australia’s economic growth were asked for new ideas to improve regulatory reform to reduce red tape and ease burden on businessesExternal Link.
The Commissioner of Taxation responded on 1 August 2025 (PDF 1.7MB)External Link outlining actions that were directed at increasing productivity, contributing to economic resilience and promoting budget sustainability, including actions to simplify tax administration for business.
One of the actions outlined was the ATO’s pilot to modernise pay as you go instalments (PAYGI), by ensuring that instalment amounts better reflect current business profitability. The approach aimed to ensure PAYGI instalments better reflected profitability to reduce the potential for bill shock when the businesses lodged their income tax returns.
The ATO shared early insights from the pilot with members. Based on these early insights, which yield promising results, work has commenced to explore opportunities to expand the pilot to a broader range of business who could use the dynamic PAYGI approach.
Member comments
Members expressed support for the PAYGI pilot and its potential to improve earlier visibility of cash flow impacts and reduce the potential for an end of year tax debt. They highlighted the need for clear guidance and communication, especially for new businesses and those without robust data or regular accounting processes.
Members also noted the importance of co-design with digital service providers (DSP) and ensuring there was clarity on technical requirements for any future Application Programming Interface.
Tax Ombudsman review – Registered agent phone line
(Links to strategic priority 1 – Protect the high levels of engagement and integrity in the tax, super and registry systems)
The ATO welcomed the release of the ‘ATO’s registered agent phone line and service offer to agents’ report and noted that it has accepted all recommendations, except for 1 sub-part of recommendation 3. The 4 recommendations were framed around:
- ATO’s engagement with agents
- ATO’s digital services
- Registered agent phone line
- Support for client-to-agent linking.
The ATO also acknowledged the upcoming Tax Ombudsman reviews around general interest charges and Online services for agents and how we intend to continue working with the profession throughout these reviews.
We discussed ways to support work in delivering the recommendations and asked members for their ongoing engagement in responding to the review recommendations. We outlined our commitment to being transparent with the profession and our continued plans for communication and collaboration.
Member comments
Members welcomed our commitment to working with the profession and provided some early feedback ahead of the Online services for agent review.
Members emphasised the need to ensure any future system changes are practical and beneficial for all stakeholders.
Interactions Strategy 2030
(Links to strategic priority 3 – Improve tax performance for clients of tax practitioners)
The ATO’s Interactions Strategy 2030 is an enterprise level, ATO Executive endorsed strategy. It extends beyond digital interactions to encompass all ways the ATO interacts taxpayers, including tax professionals and DSPs. The strategy considers both current and emerging interaction channels and how the ATO intends to position its engagement with taxpayers as it is progressively rolled out, including the impact of digital transformation and emerging technologies.
The strategy establishes a whole-of-organisation approach that integrates natural business and governance process to guide current and future interactions. This approach supports collaboration and effective communication of ATO priorities, recognising the critical role tax professionals and DSPs play in administrating the tax system and the implications of interaction changes for practitioners, their clients and digital service delivery.
We welcome the involvement of tax professionals and DSPs through co-design and consultation to shape the next steps in delivering the strategy and realising its vision.
Member comments
The strategy is welcomed and its focus on co-design, but members sought clarity on how it differs from previous strategies, how vulnerability considerations, like older taxpayers will be incorporated, and how success will be measured. They expressed interest in being involved in prioritisation and implementation and raised concerns about balancing cost efficiency with quality outcomes.
Payday Super changes
(Links to strategic priority 1 – Protect the high levels of engagement and integrity in the tax system)
The core Payday Super legislation received Royal Assent on 6 November 2025, taking effect 1 July 2026. Key changes for Payday Super are available.
Super guarantee (SG) contributions will generally need to reach employees’ super funds within 7 business days of payday, with some exceptions applying. Best practice is to make the SG contribution at the same time as the employer pays qualifying earnings to their employees.
Draft Practical Compliance Guideline PCG 2025/D5 Payday Super – first year ATO compliance approach has been published on the ATO’s compliance approach for employers. The PCG 2025/D5 sets out what the ATO will consider when deciding how to apply compliance resources to investigate employers in the first year of Payday Super.
The Small Business Superannuation Clearing House (SBSCH) will close from 1 July 2026. Since 1 October 2025, new users have not been able to register. Employers should start planning now on how to meet SG obligations once the SBSCH is closed, including reviewing ways employers can pay their employees' super.
The Payday Super Working Group has been established to support the ATO’s implementation of Payday Super. There are 3 technical working groups, which sit under the Payday Super Working Group that manage Single Touch Payroll (STP) changes, SuperStream changes and the closure of SBSCH. Members can email paydaysuper@ato.gov.au any considerations or suggestions they have.
Member comments
Members welcomed the update but raised concerns about DSP and employer readiness, onboarding errors, and timing for rejected contributions. They highlighted the need for clear guidance for agents and employers, practical solutions for SBSCH data access before closure, and strong communication to support new entrants. We acknowledged members concerns and explained that a range communication products and web guidance is being developed and that there are several alternative low and no cost clearing house options available to business impacted by the closure of the clearing house.
Environmental scan
(Links to strategic priority 4 – Increase trust and confidence in the tax and super systems)
A group discussion on insights, trends, developments across the DSP and tax profession communities occurred, highlighting:
- potential changes to practice mail
- artificial intelligence (AI) and the need for guidance on safe and effective use of AI tools.
- issues raised around tax return lodgment for consolidated groups
- cheque wind-down processes and bank account validation.
Other business
Members agreed to accept the Tax Profession Digital Implementation Group charter as final for 2025-26.