Non-agency members
Members shared a broad range of insights from their communities, industries and professional networks. A recurring theme was the perception among small businesses that there is limited incentive to grow, with concern that expansion increases the likelihood of penalties rather than rewards.
Members discussed Payday Super, noting it represents another significant change for small businesses to navigate. One member who had already prepared for the transition reported positive experiences, particularly where superannuation funds provided clear support materials and clearing house services.
Payment plan experiences were raised, particularly instances where business owners received default notices despite believing they were complying with agreed arrangements.
Ongoing challenges were highlighted around employing and retaining skilled staff, as well as the personal burden many small business owners carry by prioritising staff, suppliers and tax obligations ahead of their own remuneration.
Members who have transitioned from quarterly to monthly payment cycles reported positive cash flow outcomes. At the same time, concerns were raised about cash-in-hand practices, particularly within trade-based industries such as construction, maintenance and landscaping.
Small business support services reported increasing demand. Micro-businesses were identified as particularly vulnerable, with limited access to industry association support and increasing tax debt levels.
The Indigenous small business community expressed appreciation for the ATO’s vulnerability framework and education initiatives, particularly the ‘Business Yarns’ program.
Regulatory reform program
The ATO sought member feedback on actions aimed at improving productivity and supporting economic growth, with a focus on making compliance easier through better use of data and shifting non-compliant taxpayers to monthly goods and services tax reporting.
Members expressed general support for the direction. We advised the intended outcome is to simplify tax returns, reduce manual processing and lower compliance costs.
Members emphasised that education promoting monthly reporting should be led by business owners rather than the ATO to improve credibility. Messaging should focus on monthly reporting as a tool to build better business habits.
Concerns were raised about multiple reporting due dates within a single month, with suggestions to explore a single monthly due date across obligations. Members also queried whether legislative change could allow businesses to report monthly on a best-endeavours basis, with the opportunity to correct errors at the end of the quarter, reducing fear of incorrect lodgment.
ATO concessions review
An update on the redefining concessions initiative was provided; it is now progressing to implementation planning. Feedback was sought on proposals relating to lodgment expectations for new businesses and conditions attached to payment arrangements.
Given the scale of small business tax debt, members emphasised the need for a balanced approach that is firm with intentional non-compliance while supportive of vulnerable taxpayers.
Payday Super
The ATO reaffirmed its commitment to supporting small businesses ahead of Payday Super implementation, advising of upcoming communications and employer engagements.
Members raised concerns about commercial clearing house processing times and employer accountability where delays occur, noting that there are currently no specific regulations governing clearing houses. Concerns were raised about the lack of clarity around how clearing houses are monitored, with employers currently required to verify payments by checking published transfer information on individual clearing house websites, which was viewed as impractical. The ATO advised that clearing houses have been actively engaged in the consultation processes for the updated SuperStream requirements (including updates to processing timeframes and payment methods, like the new payments platform).
A mid-April employer webinar will provide education on key policy concepts and address common questions. Members suggested that messaging, particularly promoting good business management and cash flow, should be delivered by employers rather than the ATO. One small business owner agreed to participate in the webinar, highlighting their personal experiences and positive business outcomes associated with Payday Super.
ATO Strategy: Direction to 2030
The ATO provided early visibility of its long-term strategic direction and sought member insights on the proposed strategic shifts.
There was strong sentiment that the ideal future state is one where tax obligations occur seamlessly in the background, making tax 'just happen' so businesses can focus on operations rather than administration.
Members discussed the increasing cadence of tax obligations and highlighted the importance of genuinely reducing red tape, rather than shifting or repackaging it.
A system wide approach to future strategy was seen as critical, including early identification of risks, clear accountability for managing them, and recognition of external influences over time.
Members sought stronger assurance and clearer signalling of the ongoing and future role of tax agents and intermediaries, noting their central role in supporting taxpayers and partnering in the effective functioning of the tax system.
Attendees
|
Organisation |
Attendee |
|---|---|
|
ATO |
Rowan Fox (Co-chair), Small Business |
|
ATO |
Angela Allen, Small Business |
|
ATO |
Anna Longley, Frontline Risk and Strategy |
|
ATO |
Ben Kelly, Superannuation and Employer Obligations |
|
ATO |
Claire Miller, Enterprise Solutions and Technology |
|
ATO |
Jack Wang, Frontline Risk and Strategy |
|
ATO |
Natasha Sekulic, Frontline Risk and Strategy |
|
ATO |
Sarah Vawser, Individuals and Intermediaries |
|
ATO |
Travis Deane, |
|
ATO |
Tony Poulakis, Small Business |
|
Australian Automotive Aftermarket Association |
Lesley Yates |
|
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 |
|
Indigenous Business Australia |
Chris Germain |
|
Indigenous Business Australia |
Kellie Hind |
|
Institute of Certified Bookkeepers |
Matthew Addison |
|
Institute of Public Accountants |
Tony Greco |
|
Real Estate Institute of Australia |
Shalini Raj |
|
Rural Doctors Network |
Richard Colbran |
|
Small Business Debt Helpline |
Helen Davis |
|
Small Business Operator |
Angela Harlen |
|
Small Business Operator |
Donna Niazov |
|
Small Business Operator |
Lisa Dwyer |
|
Small Business Operator |
Paul Meissner |
|
Small Business Operator |
Tony Sama |
|
Treasury |
Anthony Seebach |
|
Treasury |
Jas Manpotra |
|
UNSW Tax & Business Advisory Clinic |
Ann Kayis-Kumar |
Apologies
|
Organisation |
Member |
|---|---|
|
ATO |
Elissa Walker, Enterprise Solutions and Technology |
|
Treasury |
Richard Maher |