Opening comments
No conflicts of interest were declared.
Treasury
Treasury provided an update on various current matters:
- David Bradbury has been appointed to chair the Board of Taxation from 1 April 2026.
- Consultation continues on the proposed $1,000 instant tax deductionExternal Link for work-related expenses, with members flagging concerns that would be the subject of consultation submissions.
- Submissions have closed for Strengthening the foreign resident capital gains tax regimeExternal Link and Superannuation advertising banExternal Link consultations.
Members expressed broader concerns regarding shorter consultation timeframes and implementation impacts. Members suggested that undertaking a stocktake of announced but unenacted measures would be helpful as well as providing greater visibility of the forward work program. This can form part of future National Tax Liaison Group (NTLG) discussions.
It was agreed that a longer discussion would be scheduled for the June NTLG to allow for an overview of the end-to-end process when setting legislative priorities.
Optimising disputes through self-service: Digital objection form for self-lodging individuals
An online objections form for self-lodging individuals (individuals) was made available on 14 March 2026. It provides a contemporary, online experience intended to guide individuals through the form to submit valid and complete objections. Extensive user testing was undertaken in the development of the form. The form is available through the existing online services for individuals' system, which is an authenticated digital channel. Once complete, the form provides confirmation of lodgment providing the individual with a record of their submission. Early indications demonstrate that individuals are moving from paper to the online form for lodgment.
Members discussed the benefits of the form and provided suggested areas of user experience for monitoring. The ATO confirmed monitoring for meaningful insights is in progress, and that to date no significant technical or user issues have been identified.
Members were invited to provide feedback to assist with ATO's early exploration of interim solutions to enable legal practitioners to securely and digitally lodge objections.
Frontline Operations present landscape, opportunities and challenges: member perceptions and comments
The ATO provided an update regarding business take-up of the ATO fuel response package, noting strong website engagement but relatively low call volumes. Many applicants registering interest in the ATO fuel response payment plan, have existing tax debt or were anticipating March lodgment liabilities. Enquiries revealed that numerous early registrants anticipated potential difficulties, subsequently determined they did not ultimately require payment plans. Members similarly reported limited take up, recognising the measure is not a handout and that debt must ultimately be paid. There was a further discussion regarding review of the Commissioner of Taxation’s cents per kilometre rates, general interest charge treatment and what additional concessions could assist cash flow pressures.
Members identified agent visibility of tax debt as a barrier to providing further support for clients and the tax system.
Member update, including systemic issues and issues associated with the current crisis in the Middle East
Item deferred to the June agenda.
Consultation response paper
The ATO advised that the consultation snapshot presented to members at the February NTLG trialled a new format and acknowledged member concern and lack of ATO explanation and context for the revised report format. Members welcomed the additional context provided in the meeting to assist in better understanding the report. Following feedback, the report will be revised and re-issued in June.
Members noted growing challenges in stakeholder engagement through consultation processes, including inconsistent approaches and unclear expectations (including Treasury consultation processes). Suggested improvements included allowing adequate timeframes, improving the timeliness of papers, clarifying problem statements upfront, and being explicit about information that can and cannot be shared, alongside encouraging greater consistency across ATO groups.
Members queried the appropriate use of ATO communication channels, raising concern over the use of Spotlight articles for communication of significant ATO positions, while noting the value of weekly Public Affairs updates and suggesting that new compliance approaches be more clearly signposted through 'What’s New' communications.
Productivity update
The ATO provided updates across several actions that it had outlined in the Commissioner’s letter to the Treasurer on 1 August leading up to the economic round table discussions.
The ATO discussed:
- The strong results from its pilot of a pay as you go (PAYG) instalments variation calculation to more accurately reflect current business performance and its plans to expand the pilot from 1 July 2026 accompanied by relevant public guidance. Members questioned penalty settings for incorrect PAYG variations and emphasised the need for clear, timely communication.
- Progress in using taxable payments annual reporting (TPAR) data to prefill individual returns for tax time 2026. The ATO will encourage individuals to wait to lodge to allow for the pre-fill to take place in late August.
- The outcomes from its pilot moving a small number of non-compliant taxpayers from quarterly to monthly GST reporting. Some taxpayers reported a resultant improvement in their cash flow management and reduced the potential for debt to arise, and others chose to exit from the GST system. Members queried whether a broader application of this approach could be made available to new businesses. The ATO noted this could be done voluntarily and it would continue to highlight this option in education and guidance.
Artificial Intelligence (AI) messaging and Tax Time
The ATO has commenced issuing messaging, highlighting warnings about the use of AI when completing tax returns. To date, representatives from the ATO have made televised appearances and the ATO has also issued a media release: From 'hacks' to half-truths: ATO warns of tax time misinformation and reveals focus areas.
The ATO will continue releasing related messaging over the next month and welcomes members’ feedback and insights.
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 |
Mia Clarebrough |
|
Law Council of Australia |
Neil Brydges |
|
National Tax & Accountants' Association |
Robyn Jacobson |
|
The Tax Institute |
Julia Abdalla |
|
The Tax Institute |
Sumitha Krishnan |
|
The Tax Institute |
Tim Sandow |
|
Treasury |
Diane Brown |
Guest attendees
|
Organisation |
Attendee |
|---|---|
|
ATO |
Amy James-Velagic, Objections and Review |
|
ATO |
Anna Longley, Frontline Risk and Strategy |
|
ATO |
Daniel Nesci, Objections and Review |
|
ATO |
David Allen, Frontline Operations |
|
ATO |
Grant Brodie, Individuals and Intermediaries |
|
ATO |
Hoa Wood, Policy, Analysis & Legislation |
|
ATO |
Kavita Panjrantan, Private Wealth |
|
ATO |
Nadia Alfonsi, Policy, Analysis & Legislation |
|
ATO |
Nicole Dykstra, Frontline Risk and Strategy |
|
ATO |
Rob Heferen, Commissioner of Taxation |
|
ATO |
Sheridan Harvey, Enterprise Strategy and Design |
Apologies
|
Organisation |
Member |
|---|---|
|
ATO |
Jeremy Hirschhorn, Client Engagement Group |
|
Treasury |
Laura Berger-Thomson |