Vale Grant Wardell-Johnson
Members acknowledged the passing of former National Tax Liaison Group (NTLG) co-chair Grant Wardell-Johnson and recognised his significant contribution to tax policy and administration. Members remembered him as a deep thinker with an unwavering commitment to improving the tax system.
Environmental scan
Members expressed concern about the increasing complexity and compliance burden of the tax system, key themes included:
- Challenges facing the tax profession that include increased exposure to risk, a more complex compliance environment and the cumulative impact of recent regulatory reforms.
- Concerns that short consultation periods are making meaningful engagement difficult and creating doubt about whether feedback is being seriously considered.
- Members suggested the Australian Taxation Office (ATO) and professional bodies should work together on communications, including traditional media and social media, with professional associations assisting with myth-busting and public education.
ATO corporate plan
The ATO provided an overview of the 2026–27 corporate plan, the first aligned to the ATO’s 2026–2030 strategy. Key priorities include the implementation of government budget measures and the expanded use of artificial intelligence.
Members discussed aspects of the performance measures including the cost of compliance and efforts to improve understanding of taxpayer and practitioner impacts.
Dispute resolution
The ATO updated members on a review of its dispute resolution approaches for businesses including independent review services. Following the review, the large market independent review service will be discontinued from 30 September 2026 and the small business independent review expansion pilot (Pilot) concluded on 30 June 2026, as neither service was achieving its intended outcomes.
The ATO has put transition arrangements in place to support taxpayers with final audit position papers issued around these timeframes. The small business independent review will continue to be offered as a service.
As part of the ATO's continued commitment to efficient dispute resolution for large business and private groups, members were consulted on a proposed arbitration pilot for certain cases with characteristics outlined in the pilot framework.
Public advice and guidance
The ATO outlined the factors used to prioritise public advice and guidance, including community demand, strategic priorities and taxpayer needs. Members welcomed the transparency and highlighted the need for timely guidance on the capital gains tax and trust changes and other emerging issues.
Members discussed the role of guidance products, improvements to consultation processes and the value of greater visibility of priority projects. Concerns were raised about the pace of tax reform, unresolved draft rulings and opportunities for meaningful engagement.
Members were asked to comment on the ATO's emerging priorities for 2026–27 and provided feedback on areas where they considered guidance would be of greatest value to taxpayers and practitioners.
Cost of compliance framework
The ATO provided an update on work to develop a framework for understanding taxpayer compliance costs to better inform advice to government and identify opportunities to reduce taxpayer burden.
The ATO outlined its intention that the framework operate as a diagnostic tool and discussed key elements of the framework with a focus on estimating costs for different taxpayer segments, tax types, cost activity categories and lifecycle events. Stakeholder feedback is now being sought through consultation, with input from the tax profession being highly valued.
Members sought further information on measurement approaches, identified the Tax Practitioner Stewardship Group as a useful source of insights, and highlighted fringe benefits tax as an area of significant compliance burden.
Estimation of compliance costs
The ATO outlined its long-standing approach to assessing compliance impacts of policy and administrative changes through qualitative analysis and quantitative modelling, supported by data from surveys and targeted interviews. An example was stepped through to show the approach, using recent work on the impacts of dynamic pay as you go instalments. State taxes are not currently included in compliance cost modelling.
We will undertake new broad-based surveys of individuals and businesses, to be released shortly. Data from these surveys will be combined with ATO administrative data and insights for both top-down (whole of economy, sector-wide) and bottom-up (measure-by-measure) compliance impact measurement. Members will be invited to provide feedback on the broad-based and other surveys before release.
Digital services
The ATO discussed opportunities to better integrate tax and regulatory obligations into the digital ecosystem to support real-time compliance and reduce administrative burden.
Opportunities to further automate goods and services tax, deductions and other compliance processes were discussed, with members noting comparisons with other jurisdictions.
Red tap reduction
The ATO advised red tape reduction will be proposed as a standing agenda item across stewardship groups, with the NTLG acting as the primary forum for considering and prioritising ideas.
Members discussed opportunities to improve coordination across stewardship groups to reduce duplication and support information sharing.
Treasury
Treasury provided an update on organisational changes, including leadership and structural changes across tax, superannuation and small business policy functions.
Trust reform legislation is expected to be introduced before year-end, with usual processes expected to be followed regarding consultation. Progressing current tax reform measures remains a key priority.
Members requested Exposure Drafts not be released during school holiday periods where possible. Members also sought clarification on the publication of consultation submissions and the timing of remaining capital gains tax measures.
Attendees
|
Organisation |
Member |
|---|---|
|
ATO |
Kirsten Fish (Co-chair), Law Design and Practice |
|
Chartered Accountants Australia and New Zealand |
Lynda Brumm |
|
Chartered Accountants Australia and New Zealand |
Susan Franks |
|
Corporate Tax Association |
Simon Staples |
|
CPA Australia |
Alexis Kokkinos |
|
CPA Australia |
Jenny Wong (Co-chair) |
|
Institute of Public Accountants |
Tony Greco |
|
Law Council of Australia |
Neil Brydges |
|
National Tax & Accountants' Association |
Robyn Jacobson |
|
The Tax Institute |
Tim Sandow |
|
Treasury |
Laura Berger-Thomson |
Guest attendees
|
Organisation |
Attendee |
|---|---|
|
ATO |
Amy James-Velagic, Objections and Review |
|
ATO |
Claire Miller, Enterprise Solutions and Technology |
|
ATO |
Emily Webster, Office of the Chief Tax Counsel |
|
ATO |
Fiona Dillon, Office of the Chief Tax Counsel |
|
ATO |
Janelle Oakes, Enterprise Strategy and Design |
|
ATO |
Jim Thiveos, Office of the Chief Tax Counsel |
|
ATO |
Kavita Panjrantan, Private Wealth |
|
|
Mark Simpson, Enterprise Strategy and Design |
|
|
Paul Beohm, Policy Analysis & Legislation |
|
|
Philip Akroyd, Policy Analysis & Legislation |
|
ATO |
Rebecca Saint, ATO Executive |
|
ATO |
Rob Heferen, Commissioner of Taxation |
|
|
Sandra Roussel, Policy Analysis & Legislation |
|
ATO |
Sheridan Harvey, Enterprise Strategy and Design |
|
ATO |
Trent Jakubowski, Policy Analysis & Legislation |
|
Law Council of Australia |
David Hughes |
Apologies
|
Organisation |
Member |
|---|---|
|
ATO |
Jeremy Hirschhorn, Client Engagement Group |
|
Law Council of Australia |
Mia Clarebrough |
|
The Tax Institute |
Julia Abdalla |
|
Treasury |
Diane Brown |