Non-agency member update
Members shared observations from their industries, communities and professional networks on the current small business environment.
Economic conditions remain a key concern across multiple sectors. In agriculture, ongoing global conflict continues to drive uncertainty and contribute to rising fuel and material costs, impacting profitability and long-term viability. More broadly, increasing fuel prices and associated input costs are creating financial strain for many businesses, particularly for those with higher overheads. In contrast, some micro businesses operating primarily online reported being less affected by these pressures. Businesses reliant on discretionary spending, such as personal services, are observing customers extending the time between visits.
Budget-related measures, including potential changes to negative gearing, capital gains tax and trust arrangements, are being closely monitored by members for their potential impact on small business.
Members raised several observations regarding engagement with the Australian Taxation Office (ATO). While some recent interactions with the ATO’s call centres were described as positive, with staff demonstrating an improved understanding of the small business experience, there remain concerns about the accessibility and intuitiveness of engagement mechanisms more broadly. Opportunities were identified to further improve the ease and accessibility of interactions, including through continued focus on client experience, transparency and support for taxpayers and their advisers.
Positive feedback was provided on recent updates to several internal Practice Statement Law Administration (PSLAs), which now incorporate greater consideration of vulnerability, particularly in relation to sham directors.
Across several industries, particularly in health and social care, members identified a gap in business management literacy and capability, noting that many professionals are well-trained in their technical fields but lack education in running a business. This was seen as a factor that can affect long-term business viability. The ATO noted the availability of a suite of free online learning products designed to support small businesses across their lifecycle, from choosing a structure through to managing tax and employer obligations.
Members discussed ongoing developments associated with Payday Super, expressing general support for the initiative.
External fraud environment - small business perspective
The ATO provided an update on its response to the current fraud environment and invited members to share their perspectives on emerging risks affecting small businesses.
Members recognised fraud prevention is a shared responsibility between the ATO and small businesses, noting the importance of protecting not only business operations, but also clients and employees.
The increasing sophistication of fraudulent activity was a consistent theme. Members observed that advancements in technology, including artificial intelligence, are making scams more convincing and harder to detect, particularly in the case of phone-based impersonation and communications that appear legitimate. While there was some confidence that education efforts are having an impact, such as improved awareness that the ATO does not send unsolicited links, members noted there remains a significant volume of information to absorb in this area. For many small business owners, building and maintaining this capability represents an additional time and cost burden, which can be particularly challenging depending on experience and digital literacy.
Members emphasised the importance of having clear and practical cyber security response plans, including processes for notifying affected parties such as staff, clients and the ATO, to minimise the impact of an incident.
The ATO reinforced the importance of using secure and verified channels when engaging with its services, noting that the ATO app provides a key safeguard for small businesses in verifying interactions and protecting against fraud.
ATO app - small business perspective
The ATO provided an overview of recent enhancements to the ATO app including the ability to verify ATO calls, and built-in security features including self-lock and unlock functionality designed to help taxpayers stay safe online. Member feedback was sought on how the app could further be enhanced to better meet the needs of small business users.
Overall, members were positive about the app and recognised its value, noting that while it is currently geared towards individual users, there is opportunity to further expand its relevance for the small business community. The ability for users to personalise the services they access was seen as a strength, particularly where the app integrates with existing ATO online services.
Members acknowledged that once registered for the ATO app, agents are aware of the connection, while also understanding that agents cannot act on behalf of the individual user within the app environment. This distinction was considered important in managing expectations around functionality and access.
Members highlighted the importance of clear and accessible support materials, suggesting that short videos and visual guides would help demonstrate both the benefits of the app and how to use it effectively. There was also an opportunity identified for members to promote these materials through their own communication channels, including newsletters and industry platforms.
Helping small business get it right
The ATO introduced an upcoming discussion focused on helping small businesses meet their tax and super obligations and invited member input to help shape the agenda.
Members supported the focus of the discussion and highlighted the importance of making it easier for small businesses to understand and comply with their obligations. They identified opportunities to explore ways to improve the experience for small businesses across key stages of the tax and super system, including registration, reporting, lodgment and payment.
Members noted the importance of building business capability and encouraging small businesses to actively engage with available support and resources.
Attendees
|
Organisation |
Attendee |
|---|---|
|
ATO |
Rowan Fox (Co-chair), Small Business |
|
ATO |
Angela Allen, Small Business |
|
ATO |
Ben Kelly, Superannuation and Employer Obligations |
|
ATO |
Britta Finnigan, Frontline Risk and Strategy |
|
ATO |
Kristen Baker, Enterprise Solutions and Technology |
|
ATO |
Tara Pamula, Individuals and Intermediaries |
|
ATO |
Tony Poulakis, Small Business |
|
ATO |
Travis Deane, ATO Corporate |
|
Australian Chamber of Commerce and Industry |
Sushmitha Kasturi |
|
Australian Small Business and Family Enterprise Ombudsman |
Lynda McAlary-Smith |
|
Chartered Accountants Australia and New Zealand |
Karen Liew |
|
Council of Small Business Organisations Australia |
Adele Sutton |
|
Direct Selling Association of Australia |
Nina Rossi |
|
Real Estate Institute of Australia |
Shalini Raj |
|
Rural Doctors Network |
Richard Colbran |
|
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 |
Tony Martins |
Apologies
|
Organisation |
Member |
|---|---|
|
ATO |
Anna Longley, Frontline Risk and Strategy |
|
ATO |
Claire Miller, Enterprise Solutions and Technology |
|
Australian Automotive Aftermarket Association |
Lesley Yates |
|
Australian Retailers Association |
Ben Cornel |
|
Indigenous Business Australia |
Chris Germain |
|
Institute of Certified Bookkeepers |
Matthew Addison |
|
Institute of Public Accountants |
Tony Greco |
|
Small Business Debt Helpline |
Helen Davis |
|
Treasury |
Anthony Seebach |
|
Treasury |
Richard Maher |
|
UNSW Tax & Business Advisory Clinic |
Ann Kayis-Kumar |