Non-agency member update
Members highlighted increasing financial pressure across the small business community, with outstanding debts and overdue lodgments impacting business viability and creating barriers to an orderly exit. In this context, members welcomed the ATO's ongoing focus on vulnerability and recent updates to internal guidance that strengthen consideration of vulnerability and family and domestic violence, viewing these changes as a positive example of policy intent being reflected in operational practice.
Industry-specific observations reflected the varied challenges currently facing small businesses including, softer demand as households reduce discretionary spending, rising costs and workforce shortages. In the healthcare sector, the ATO’s support for practitioners who may have limited experience managing business, tax and superannuation obligations was acknowledged.
Payday Super
Initial feedback was generally positive. Members acknowledged the communication and support provided prior to implementation. Businesses reported benefits from making more frequent superannuation payments, including improved visibility of obligations and stronger cash flow management practices.
A range of implementation challenges were identified. Some businesses have experienced issues with clearing houses that do not automatically populate employee information, requiring the manual re-entry of details. Others reported receiving questions from employees who can see superannuation amounts on payslips but are unable to immediately see contributions reflected in their superannuation accounts.
Looking ahead, members emphasised that implementation is in its infancy, and highlighted the importance of maintaining communication, education and support throughout the first year.
Helping small business get it right
The ATO provided an overview of how member insights and observations have informed future priorities and opportunities to help small businesses meet their obligations.
Members welcomed the transparency provided through the identification of short, medium and long-term opportunities and acknowledged that some proposed improvements require legislative change and extend beyond the ATO's remit.
While supportive of the direction presented, members encouraged the ATO to clearly articulate the practical benefits and intended outcomes of proposed initiatives. Members also supported exploring opportunities to recognise businesses with strong compliance histories as a means of strengthening trust, reinforcing positive behaviours and encouraging voluntary compliance.
The ATO reiterated this remains an evolving body of work that will continue to adapt in response to changing technology, systems, policy and legislative environments.
Online services for business
The ATO sought member feedback on opportunities to improve Online services for small businesses and their authorised representatives.
A consistent theme throughout the discussion was the importance of making online services simple, intuitive and easy to navigate. Members suggested that ATO services could provide clearer upfront guidance on the information and documentation required before commencing a task and navigating ATO online services. Members considered this would reduce frustration, improve efficiency and help businesses self-service.
Several members reported positive experiences with Online services for business, once the initial registration process had been completed, suggesting that improving the onboarding experience could significantly improve overall satisfaction with the service. However, this needs to be balanced with ensuring appropriate security controls and an appropriate level of friction within identity verification processes to protect taxpayers and combat fraud.
Strengthening small business payment performance
The ATO sought member views on its role in supporting stronger payment performance and helping businesses address debt challenges before they become entrenched.
Members supported earlier intervention, timely communication and preventative approaches that encourage businesses to address emerging issues before they become unmanageable.
Education was identified as a key enabler of improved payment performance. Members noted that tailored guidance and practical support can help businesses better understand their obligations while promoting the behaviours, financial practices and business structures that contribute to long-term business success and sustainability.
A recurring theme throughout the discussion was the importance of understanding individual business circumstances and supporting business owners to achieve realistic and sustainable outcomes. Members noted that some businesses may be capable of remaining viable through payment arrangements and support, while others may determine that exiting the business is the most appropriate course of action.
Members encouraged a focus on sustainable outcomes that support both improved payment performance and the long-term health of the small business sector.
Attendees
|
Organisation |
Attendee |
|---|---|
|
ATO |
Rowan Fox (Co-chair), Small Business |
|
ATO |
Anna Longley, Frontline Risk and Strategy |
|
ATO |
Angela Allen, Small Business |
|
ATO |
Ben Kelly, Superannuation and Employer Obligations |
|
ATO |
Claire Miller, Enterprise Solutions and Technology |
|
ATO |
Felix Manero, Individuals and Intermediaries |
|
ATO |
Paul Korganow, Small Business |
|
ATO |
Travis Deane, ATO Corporate |
|
Australian Chamber of Commerce and Industry |
Sushmitha Kasturi |
|
Australian Hairdressing Council |
Fiona Beamish |
|
Australian Small Business and Family Enterprise Ombudsman |
Lynda McAlary-Smith |
|
Australian Small Business and Family Enterprise Ombudsman |
Craig Latham |
|
Chartered Accountants Australia and New Zealand |
Karen Liew |
|
Council of Small Business Organisations Australia |
Adele Sutton |
|
Direct Selling Association of Australia |
Nina Rossi |
|
Institute of Certified Bookkeepers |
Matthew Addison |
|
Institute of Certified Bookkeepers |
Rob Marshall |
|
Institute of Public Accountants |
Tony Greco |
|
Master Builders Australia |
Shane Garrett |
|
Real Estate Institute of Australia |
Shalini Raj |
|
Rural Doctors Network |
Richard Colbran |
|
Small Business Debt Helpline |
Helen Davis |
|
Small Business Operator |
Donna Niazov |
|
Small Business Operator |
Lisa Dwyer |
|
Small Business Operator |
Paul Meissner (Co-chair) |
|
Small Business Operator |
Tony Sama |
|
Treasury |
Riki Polygenis |
|
UNSW Tax & Business Advisory Clinic |
Ann Kayis-Kumar |
Apologies list
|
Organisation |
Member |
|---|---|
|
Australian Automotive Aftermarket Association |
Lesley Yates |
|
Australian Retailers Association |
Ben Cornel |
|
Indigenous Business Australia |
Chris Germain |
|
Treasury |
Anthony Seebach |
|
Treasury |
Emma Baudinette |