Treasury
Treasury is focused on supporting the returning Labor government and implementing election commitments. Treasurer Chalmers launched the reform roundtable for public consultation, supported by a taskforce. Stakeholders can contribute via Minister-led roundtables or via the upcoming Treasury website.
Consultation chief executive instruction implementation
The ATO has released an external consultation Chief Executive Instruction, consolidating consultation principles into a single directive for staff.
Members discussed improving consistency in applying these principles, noting that consultation quality varies and session purposes are sometimes unclear. There is a perceived reluctance to engage in some discussions.
Members stressed the importance of feedback to contributors, especially where common themes arise. While provision of the ATO view is helpful, practical application through examples or guidance is also needed.
ATO Vulnerability Framework
The ATO shared updates on the draft Vulnerability Framework, which sets out its commitment to supporting people experiencing vulnerability while carrying out its role of collecting tax to help fund essential services for the Australian community. Professional associations were encouraged to promote the consultation paper and identify gaps or suggest improvements.
Members discussed challenges in preventing financial abuse and the need for early detection and ongoing awareness. Concerns were raised about company director responsibilities, questioning whether additional guidance could be provided at natural points in a business lifecycle and by other participants in the ecosystem, for example, other parts of government. Non-government members also noted that authority to waive tax debts in cases of coercion currently rests with the finance minister.
Private ruling procedures and processes
Members raised concerns about delays in private rulings submitted via non-digital channels like fax and mail, which were perceived as lacking visibility and reliability. Members observed that fax submissions can go missing, and the time between submission and allocation could be improved. Members were reminded to use the Private Binding Ruling form to clearly indicate the request was a private ruling application.
The ATO confirmed that most rulings meet the service commitment of finalisation within 28 days of receiving all required information, however the ATO does not report the time between the initial submission date and the allocation to a team.
Members queried whether there are topics on which private rulings are sought where issuing public guidance could reduce the need for some rulings by offering clearer guidance upfront.
ATO interactions
The ATO is developing an interactions strategy to identify and optimise appropriate channels for interacting and transacting with the ATO, preferencing digital pathways, while recognising the need to incorporate human support in certain cases.
Members stressed the need for secure digital communication channels and urged the ATO to find reliable alternatives to phone-only access. The interactions strategy will include both intermediaries and taxpayers and is aiming for equal access across professions.
Consultation processes regarding design and content of ATO forms
Members expressed interest in contributing earlier to the design of new or updated ATO forms. While the ATO generally doesn’t consult widely on forms, it will do so when warranted. The ATO encouraged member feedback on which forms should be prioritised to digitise.
Members noted consultation can identify and avoid interaction issues or unintended implications, for example, obligations under the Tax Agent Services Act 2009.
Current consultation matters
Thin capitalisation
The ATO is progressing work on 3 priority areas: restructures under new law, third-party debt test concepts, and the interaction between transfer pricing and thin capitalisation rules. While no further formal guidance is planned, members are encouraged to raise unresolved issues.
Members advised there appear to be some technical issues or drafting errors, suggesting a roundtable might be useful to address these matters.
Members were encouraged to review the ATO’s priority list to assess relevance, coverage, and guidance needs.
General Interest Charge remission
ATO efforts to deliver relevant messaging directly to member networks has been well-received, including co-presenting with professional associations. Members appreciate the ATO’s honesty, candour, clarity and sharpness of messages.
Members noted the ATO position regarding debt-related matters can be difficult to understand due to the changes being implemented, and that improving transparency would assist to clarify the situation.
Other business
Members discussed a perceived change in correspondence regarding Director Penalty Notices (DPN)s. The ATO confirmed there has been no change to the ATO position and the example provided by members was possibly incomplete or a paragraph may have been omitted in error by the ATO in this instance.
The ATO reminded members a DPN may be withdrawn if a valid defence is provided. If a DPN is not withdrawn, an application may be made for Administration Decisions (Judicial Review) Act 1977 relief after collections action has begun.
Attendees
|
Organisation |
Members |
|---|---|
|
ATO |
Kirsten Fish (Co-chair), Law Design and Practice |
|
ATO |
Jeremy Hirschhorn, Client Engagement Group |
|
Chartered Accountants Australia and New Zealand |
Susan Franks |
|
Corporate Tax Association |
Simon Staples |
|
CPA Australia |
Alexis Kokkinos |
|
CPA Australia |
Jenny Wong |
|
Institute of Public Accountants |
Tony Greco |
|
Law Council of Australia |
Mia Clarebrough |
|
Law Council of Australia |
Neil Brydges |
|
The Tax Institute |
Jerome Tse (Co-chair) |
|
The Tax Institute |
Julie Abdalla |
|
Treasury |
Laura Berger-Thomson |
Guest attendees
|
Organisation |
Attendee |
|---|---|
|
ATO |
Adam Pritchard, Public Groups |
|
ATO |
Alex Affleck, Office of the Chief Tax Counsel |
|
ATO |
Chanara Fraser, Individuals and Intermediaries |
|
ATO |
Deanna Sari, Private Wealth |
|
ATO |
Harjit Singh, Office of the Chief Tax Counsel |
|
ATO |
Nicole Dykstra, Frontline Business Improvement |
|
ATO |
Rob Heferen, Commissioner of Taxation |
|
ATO |
Rob Thomson, Individuals and Intermediaries |
|
ATO |
Sonia Corsini, Frontline Risk and Strategy |
|
ATO |
Stephen Dodshon, Public Groups |
|
Chartered Accountants Australia and New Zealand |
Lynda Brumm |
|
The Tax Institute |
Sumitha Krishnan |
|
Treasury |
Shane Johnson |
Apologies list
|
Organisation |
Member |
|---|---|
|
Chartered Accountants Australia and New Zealand |
Michael Barbour |