Recent media
With recent media attention the Australian Taxation Office (ATO) has received, Small Business Stewardship Group (SBSG) members acknowledged that most coverage focused on historic events. Nonetheless, the importance for continued ATO self-reflection and learning was emphasised. Members noted the media narrative associated with vulnerability, in particular vulnerable women, and the importance of the ATO’s Vulnerability Framework. Members viewed the proposed principles-based narrative of the framework as a fundamental expectation for all taxpayers and recommended integration into the Taxpayer Charter. Support for those in vulnerable circumstances should complement these fundamental core principles.
A statement on ABC Four Corners story was published 29 July 2025 regarding ATO’s collectable debt activity.
Lastly noted is the focus on Operation Sentinel, a joint ATO and Fair Work Ombudsman initiative under the Shadow Economy Taskforce, targeting suspected shadow economy activities such as worker exploitation and non-compliance with tax and super obligations.
Redefining concessions project
In direct response from stakeholder feedback, including stewardship group members, the ATO is actively reviewing administrative settings and processes for taxpayer concessions including lodgment and payment deferrals, interest and penalty remission requests (excluding shortfall penalties) and payment plans. As part of the review, the ATO has identified a need for guiding principles that explain its overarching approach to granting concessions. The principles are not a checklist nor a replacement for ATO policy but will shape future guidance for taxpayers, their representatives and ATO staff. The principles will be shared for public consultation on 4 September 2025, The ATO’s approach to taxpayer relief provisions, closing 2 October 2025. Members are asked to share this information within their networks and engage in this process, as the feedback received will inform any potential future changes to the ATO’s administrative settings for concessions.
Members viewed this work favourably in supporting community confidence with the ATO, and for consistency and understanding of the ATO decision making process. It was appreciated the tax agent experience will be considered, however it was acknowledged there are/will be distinct channels for tax agents to use as opposed to a taxpayer, to ensure a tailored level of support for all parties, in managing individual situational needs.
It was confirmed the team will keep the Tax Ombudsman informed of this work, to ensure activities in the 2 respective spaces are aligned to ensure consistency.
In the coming months the focus will be refining the principles, based on public consultation feedback, considering administrative settings, including relevant practice statements, external public advice and guidance and reviewing current engagement channels and processes. With the end goal of ensuring that the concessions framework is sustainable and appropriate for taxpayers, their representatives and the ATO.
Ready for business – new to business email series
Insights were sought from members on a range of products currently under review to ensure they continue to provide practical, timely, and empowering support for small business owners while reducing duplication. The focus includes the ready for business email series rewrite, updates to the small business support web content, and the development of the small business hardships factsheet.
Members responded positively to the ready for business email series, which was circulated at one month, 6 months, and 18 months intervals as a support tool for new business owners. While the ATO is recognised as a valuable source of information and guidance, members questioned whether it is the most effective channel for delivering support. They noted that small business operators are more likely to act on advice from a known trusted source, such as professional advisor, industry association, local business chambers, rather than a government agency. This feedback highlights the importance of leveraging partnerships and trusted networks to enhance the reach and impact of ATO communications.
The focus of engagement at the Australian business number (ABN) registration needs to go beyond outlining obligations associated, it should address the responsibilities of having an ABN and what it means to be in business. Some individuals apply for an ABN without fully understanding the implications, including the legal, financial, and operational responsibilities that come with running a business.
Recipients of these emails need to know they are not alone on the business journey. Messaging should consistently reinforce the availability of support both from the ATO and trusted external sources such as professional advisors and industry associations through business lifecycle. They also need to be informed of the tools which will assist them prior to commencing the business, such as the importance of having a business plan.
The small business hardship factsheet was considered timely by members, particularly considering increasing natural disasters and digital and cyber threats. However, members emphasised the importance for small businesses being aware of these risks and adequately being prepared should they arise. The ATO acknowledged the need for business resilience and referenced the importance of the ATO’s Small Business Resilience Framework as a key tool to support and educate small business to enable them to build resilience and embed good habits.
The ATO agreed it will further consider how it can enhance opportunities to work with known trusted sources, industry associations, Australian Small Business and Family Enterprise Ombudsman (ASBFEO), professional bodies to improve the reach and delivery of the support which is available to small business owners.
Small business litigation funding program closure
The ATO advised of the decision to cease the small business litigation funding (SBLF) program with no new applications being considered after 30 September 2025. The decision to close the SBLF is based on factors which include, the program not widely being used and administrative costs outweighing benefits delivered. There are 6 currently funded matters, and these taxpayers will continue to receive SBLF funding until their proceedings are finalised in the Administrative Review Tribunal (ART). Coinciding with the closure of the SBLF the ATO intends to expand the test case litigation funding program to ensure eligibility for systemic issues in the small business market and precedential matters heard in the ART.
Members conveyed strong concerns and disappointment, highlighting that the complex legal environment can be unfamiliar and challenging for small business owners. It was observed that recent changes to the program by the ATO may have inadvertently compromised its effectiveness. Additionally, the proposed redirection of potentially eligible small businesses to the ‘test case’ funding stream appears to diverge from the intended public policy objectives of the SBLF program and may introduce substantial additional barriers, eligibility requirements, and complexities that could be difficult for small business taxpayers to manage.
The SBLF closure will heighten the importance of ASBFEO’s tax concierge service, which provides support to small businesses seeking a resolution to disputes, objections and appeals to ATO decisions. The ATO committed to exploring opportunities with key industry associations and professional bodies to encourage the use of this service to support opportunities to strengthen alternative dispute resolutions.
Payday Super
While Payday Super is currently not law, the ATO provided an update on the Payday Super reform where the government has announced that from 1 July 2026, employers will be required to pay their employees’ super at the same time as salary and wages. The ATO is committed to helping small business understand the impacts of Payday Super, the importance of which is reflected in the ATO’s corporate plan 2025–26 where establishing Payday Super is one of the 5 enterprise priorities.
Members were uncertain as to the effect Payday Super may have on ‘hobby’ micro businesses and the feasibility of current business structures, where they pay themself as an employee.
The ATO is considering its approach to compliance for Payday Super. The Payday Super Working Group will be consulted on the approach, the outcomes of which will be shared with the SBSG in future meetings.
Employers do not have to wait until 1 July 2026 to start paying super more frequently, with nearly 40% already paying super more frequently than the quarterly due date.
Members were reminded that the Small Business Superannuation Clearing House (SBSCH) will be retired from 1 July 2026. To aid in the transition process to other services, new users will be unable to register to use the service from 1 October 2025. Communications have been distributed to networks, including SBSG on 13 August 2025 encouraging existing users to take steps now to transition to alternative options, which may include options offered by super funds, commercial clearing houses or other payroll software or providers. Further information, How to pay super is available.
Members noted the closing of the clearing house, means the ‘safe harbour’ aspect for a small business owner using this service will be lost and expose smaller business employers to greater risks and penalties for contribution transfer and timeline employee fund lodgement outside their control.
We advised since the formation of the SBSCH, the commercial market has advanced with the development of free services which offer more user-friendly services than government initiated clearing house services.
Non-agency member updates
Members shared concerns from their communities, industries and broader networks.
Some small business owners on payment plans are receiving default notices despite believing they are complying with their agreed payment plan’s terms. The issue appears to stem from actions taken outside the terms of the plan, such as making early payments or paying more than the agreed amount to get ahead. This has caused confusion and frustration.
Entering a small business restructure (SBR) may negatively impact a small business owner’s ability to obtain a personal loan. While Australian Securities and Investments Commission is the regulator of the SBR process, members noted that small business owners may not have entered an SBR if they knew this was a potential outcome. The ATO acknowledged the issue and committed to contacting the SBSG member who raised it, to discuss further.
Members shared personal stories from their communities to assist the ATO to better understand the realities of the small business environment. These included examples of vulnerable circumstances to assist in the shaping of the ATO’s Vulnerability Framework, including a rural small health profession closing their business after 20 years, and the broader consequences this had on the local community in relation to loss of employment and services. Members noted a concerning trend of businesses continuing to close, drowning in tax debt, staff obligations and regulatory red tape.
Unions and the role they play are making it difficult for business to take the risk to expand and employee more staff, having a consequential effect on productivity.
In considering red tape, the question was asked, what does it mean and what does it look like? Leadership from government bodies in response to red tape is needed and it would be useful to have a future SBSG discussion on this topic. The group agreed to consider this as an agenda item at a future meeting.
Smaller accounting firms with a generalist skill set are encountering complex issues related to family and discretionary trusts that fall outside their expertise. In response, industry associations are prioritising education and support for these practitioners. The ATO has also flagged the importance of reviewing family trust elections and interposed entity elections to avoid unintended tax consequences.
There was interest in the Economic Reform Round table held 19 to 21 August 2025 and what will occur post discussion, in the short, medium and long term given the focus is to improve productivity, enhance economic resilience and strengthen budget sustainability.
Agency member updates
Treasury
Treasury advised the Minister for Small Business, the Hon Dr Anne Aly MP hosted and chaired a Small Business Ministers meeting 1 August 2025 where discussions included:
- reducing regulatory burden at all levels of government
- supporting business resilience
- putting small businesses at the heart of government decision making
- supporting digital adoption and cyber security of small businesses.
ATO
The ATO’s getting it right campaign for the current quarter, launched in August 2025, focuses on omitted income and inflated expenses within the property and construction industry.
Australian Small Business and Family Enterprise Ombudsman
There is cautious optimism, with the conditions for small business continuing to improve, with a shift in small business owner focus towards growth, innovation and productivity opportunities from technology and artificial intelligence.
The Australian Small Business and Family Enterprise Ombudsman (ASBFEO) have been advocates for small business by providing submissions with recommendations on:
- The ATO’s draft Vulnerability Framework with recommendations to ensure it is implemented in an impactful way.
- The Motor Vehicle Insurance and Repair Industry Code of Conduct.
- Treasury’s consultation on Payday Super – Exposure Draft expressing concerns that the proposal may not achieve its intended objectives of increasing compliance and reducing the ‘superannuation gap’.
The ASBFEO Small Business Pulse reportExternal Link was released in August 2025.
Attendees
|
Organisation |
Members |
|---|---|
|
ATO |
Will Day (Co-chair), Small Business |
|
ATO |
Angela Allen, Small Business |
|
ATO |
Anna Longley, Frontline Risk and Strategy |
|
ATO |
Emma Rosenzweig, Superannuation and Employer Obligations |
|
ATO |
Fawad Abro, Enterprise Solutions and Technology |
|
ATO |
Natasha Sekulic, Frontline Risk and Strategy |
|
ATO |
Rowan Fox, Individuals and Intermediaries |
|
ATO |
Tony Poulakis, Small Business |
|
Australian Chamber of Commerce and Industry |
Sushmitha Kasturi |
|
Australian Retailers Association |
Ben Cornel |
|
Australian Small Business and Family Enterprise Ombudsman |
Bruce Billson (Co-chair) |
|
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 Public Accountants |
Tony Greco |
|
Rural Doctors Network |
Richard Colbran |
|
Small Business Debt Helpline |
Helen Davis |
|
Small Business Operator |
Donna Niazov |
|
Small Business Operator |
Lisa Dwyer |
|
Supply Nation |
Kate Russell |
|
Treasury |
Anthony Seebach |
|
Treasury |
Richard Maher |
|
UNSW Tax & Business Advisory Clinic |
Tony Martins |
Guests
|
Organisation |
Attendee |
|
|---|---|---|
|
ATO |
Cassandra Franklin, Office of the Chief Tax Counsel |
|
|
ATO |
Jonathan Todd, Private Wealth |
|
|
ATO |
Josh Parry, Frontline Risk and Strategy |
|
|
ATO |
Rebecca Bodel, Frontline Risk and Strategy |
|
|
ATO |
Sonia Corsini, Frontline Risk and Strategy |
|
|
ATO |
Travis Deane, ATO Corporate |
|
|
ATO |
Usha Narain, Superannuation and Employer Obligations |
|
|
ATO |
Yolanda Applebee, Frontline Risk and Strategy |
|
Apologies
|
Organisation |
Member |
|---|---|
|
ATO |
Elissa Walker, Enterprise Solutions and Technology |
|
Australian Automotive Aftermarket Association |
Lesley Yates |
|
Australian Chamber of Commerce and Industry |
Jodie Trembath |
|
Australian Veterinary Association |
Moss Siddle |
|
Indigenous Business Australia |
Chris Germain |
|
Institute of Certified Bookkeepers |
Matthew Addison |
|
Real Estate Institute of Australia |
Shalini Raj |
|
Restaurant and Catering Industry Association |
Suresh Manickam |
|
Small Business Operator |
Angela Harlen |
|
Small Business Operator |
Paul Meissner |
|
Small Business Operator |
Shannon Smit |
|
Small Business Operator |
Tony Sama |
|
UNSW Tax & Business Advisory Clinic |
Ann Kayis-Kumar |