Environmental scan
ATO Corporate Plan
The Australian Taxation Office (ATO) has launched its corporate plan which is aligned to both the ATO Strategy and the ATO purpose, both of which were launched earlier in the year.
Client-to-agent linking for individuals and sole traders
The ATO deployed client-to-agent linking in 2022 and 2023 to all entities with an Australian business number (ABN), excluding sole traders to strengthen the security of the tax and super system.
It was introduced in response to fraud activities, where agents' digital credentials were being compromised by unknown third parties.
Client-to-agent linking has successfully prevented this fraudulent activity in the ABN entity market, and we are now applying this process to individuals and sole traders.
The client-to-agent linking process will only apply when an individual or sole trader wants to appoint a new registered agent or is changing the authorisations given to an existing agent, and will:
- help ensure only authorised agents can access a client's tax information
- reduce the risk of identity theft and fraudulent activity
- provide greater visibility and control for individuals over who can access their tax record.
This change supports a more secure and trusted digital environment for both agents and their clients.
A pilot is planned for March 2027, with full deployment in November 2027 when the process becomes mandatory for adding new individual and sole trader clients. Expressions of interest are open to registered tax and BAS agents.
No action is currently required. Existing access arrangements and ABN entity linking remain unchanged, with guidance to follow before implementation.
Division 855 amendments
The recent enactment of amendments to Division 855 were discussed. Members queried whether the ATO was consulting in relation to how the amendments may interact with international treaty obligations. We confirmed that this matter is being actively considered.
Independent review service
Following a review of its independent review services, the ATO:
- Discontinued Large Market Independent Review from 1 October 2026 and has been communicating with taxpayers whose final audit position papers were issued around that date.
- Ended the Small Business Independent Review Expansion Pilot on 30 June 2026 due to low uptake and findings that it was not resolving disputes earlier. Participation was by invitation only for eligible privately owned and wealthy groups with turnover between $10 million and $50 million.
The existing Small Business Independent Review service continues for entities with aggregated turnover below $10 million.
As part of its commitment to efficient dispute resolution for large businesses and private groups, the ATO consulted members on a proposed arbitration pilot for cases meeting the criteria outlined in the pilot framework.
Members asked why participation was by invitation only. We explained that this approach would allow it to test the pilot’s scope and methods before considering broader participation. If successful, the pilot may be expanded.
Member raised issues
Members raised the family trust distribution tax (FTDT) amnesty, which is due to end on 31 December. Members have concerns that taxpayers may not have sufficient time to identify, quantify and disclose historical issues, particularly where trust structures are complex, records are incomplete or interpretative issues remain unsettled.
Members supported allowing taxpayers to lodge an expression of interest before the deadline to preserve access to the 80% general interest charge (GIC) remission while they finalise their disclosure. Members suggested a need for greater flexibility where an issue is identified during an ATO review but before significant compliance activity has occurred.
The ATO advised it intends to review existing FTDT cases and will update public advice and guidance (PAG) where appropriate.
ATO PAG and litigation
The group discussed the implications of current litigation for the ATO’s longstanding position in IT 2340 on pre-CGT assets held by discretionary trusts.
The ATO made reference to a matter that was recently heard in the Federal Court where the Court is considering whether, or in what circumstances, assets acquired before 20 September 1985 by discretionary trusts could retain their pre-CGT status. Depending on the outcome, IT 2340 may no longer reflect the correct legal position and may need to be withdrawn or revised.
Members highlighted the potentially significant and retrospective consequences for taxpayers who have relied on the ruling over many years, including uncertainty over the pre-CGT status of assets and difficulties obtaining historical records.
The ATO noted that related private ruling applications are likely to be placed on hold until the Court provides clarity.
Minimum tax on discretionary trusts
The group discussed the proposed minimum trust tax regime, the discretionary trust rollover and the election for fixed trust taxation measure. Members raised concerns that the proposals would create significant complexity, compliance costs and unintended commercial consequences.
Discussion focused on the practicality of the rollover and election options, potential interactions with trust law and state taxes. Members proposed a simpler alternative whereby the minimum trust tax regime would include a non-refundable credit mechanism for corporate beneficiaries.
The group emphasised the need for clear public guidance, practical administrative processes and supporting tools to help taxpayers understand and comply with the new rules. The ATO acknowledged these concerns and will continue working with Treasury and stakeholders as the measures are developed.
Other business
Members were informed of the upcoming Private Groups Stewardship Group membership refresh.
Action item update
|
Action item |
20260324-2 GIC remission guidance |
|---|---|
|
Description |
ATO to consider more detailed guidance for advisors about the updated GIC remission process for taxpayers and tax professionals. |
|
Responsibility |
ATO |
|
Status |
Open – Guidance for tax advisors is actively being considered and worked on. |
|
Action item |
20260716-1 Contact Australian Small Business and Family Enterprise Ombudsman |
|---|---|
|
Description |
ATO to contact the Australian Small Business and Family Enterprise Ombudsman to let them know the ATO will assist with guidance, direction and referral pathways for small business queries about the new measures. |
|
Responsibility |
ATO |
|
Status |
Open – This is currently in progress. |
|
Action item |
20260716-2 Private Groups Stewardship Group (PGSG) out of session – CGT interactions |
|---|---|
|
Description |
The ATO to organise an out of session PGSG meeting focusing on interaction issues, particularly those relevant to Private Wealth, and the session will operate as a listening and feedback gathering forum. |
|
Responsibility |
ATO |
|
Status |
Closed – Out of session consultation was held on 17 August 2026. |
|
Action item |
20260716-3 PGSG out of session – Trust restructuring and rollover issues |
|---|---|
|
Description |
ATO to organise an out of session PGSG meeting focusing on whether existing rollovers could support movement from trust structures into corporate groups and whether any transitional or safe habour-style approaches are possible. |
|
Responsibility |
ATO |
|
Status |
Closed – Out of session consultation was held on 17 August 2026. |
|
Action item |
20260909-1 PAG development for new trust measures |
|---|---|
|
Description |
ATO to consider member feedback and provide a copy of a draft for consultation, once ready, relating to the development of PAG for the new trust measures. |
|
Responsibility |
ATO |
|
Status |
Open |
Attendees
|
Organisation |
Member |
|---|---|
|
ATO |
Louise Clarke (Co-chair), Private Wealth |
|
ATO |
Carolynne McQuay, Private Wealth |
|
ATO |
Grant Brodie, Individuals and Intermediaries |
|
ATO |
Sonia Corsini, Private Wealth |
|
Accru Felsers |
Brett Cox |
|
Alvarez & Marsa |
Dang Kha |
|
BDO |
Michael Anderson |
|
Chartered Accountants Australia and New Zealand |
Karen Liew |
|
CPA Australia |
Jenny Wong |
|
EY |
Priyanka Subramanyam |
|
HLB Mann Judd |
Gaurav Chitnis |
|
John Fairfax Group |
Rob Jackson |
|
KPMG |
Belinda Cheesewright |
|
Law Council of Australia |
Tuan Van Le |
|
Moore Australia |
Varun Kumar |
|
Mutual Trust |
George Psarrakos |
|
Piper Alderman |
Megan Bishop |
|
Pitcher Partners |
Alexis Kokkinos |
|
Tax Bar Association |
James Strong |
|
The Tax Institute |
Jonathan Ortner (Co-chair) |
|
William Buck |
Tim Lyford |
Guest attendees
|
Organisation |
Attendee |
|---|---|
|
ATO |
Cassandra Franklin, Litigation and Legal Services |
|
ATO |
Daniel Nesci, Objections and Review |
|
ATO |
Jason Michael, Private Wealth |
|
ATO |
Jenny Lin, Private Wealth |
|
ATO |
Maree Caulfield, Private Wealth |
|
ATO |
Neville Thomas, Private Wealth |
|
ATO |
Rebecca Saint, ATO Executive |
|
ATO |
Scott Walker, Private Wealth |
Apologies list
|
Organisation |
Member |
|---|---|
|
Oatley Family Group |
Sharon Clark |