Chair update
The Australian Taxation Office (ATO) Tax Practitioner Stewardship Group (TPSG) chair provided an update on key ATO and TPSG related matters, including:
- 2026–27 Federal Budget measures
- out-of-session meetings
- recap of the Tax Professional Digital Implementation Group (TPDIG) meeting.
Members highlighted the importance of incorporating the tax practitioner perspective into the design and implementation of new Budget measures, particularly those relating to capital gains tax (CGT) and negative gearing reforms and encouraged early engagement where possible.
Members also supported a strong alignment between strategic and implementation forums such as TPSG and TPDIG.
Environmental scan
A discussion on key insights, trends, and developments that the ATO should consider as broader context for the effective operation of the tax and superannuation systems was discussed, including:
- ATO guidance relating to the Bendal decision
- 2026–27 Federal Budget measures relevant to the profession.
Increasing pressures on the profession arising from significant changes to the system, including Payday Super and new measures such as CGT and discretionary trusts, compounded by ongoing resource constraints.
The ATO is addressing these items as part of our ongoing work, including recent enhancements to the tax professionals support and communication website pages.
Tax Time 2026 preparedness
Readiness and resourcing
Preparations for Tax Time 2026 are progressing well, supported by enhancements to the ATO app and security settings, a continued focus on digital services, and preparations for the peak tax time. The ATO continues to encourage taxpayers to wait for prefill information before lodging and to use digital channels wherever possible.
Staff and system readiness remain a key priority, with approximately 4 million calls forecast and increasing complexity expected in areas such as debt, hardship and vulnerability.
Members raised operational challenges, including Digital ID outages and notifications. The ATO advised that it is working with Services Australia to improve communications.
Small Business
Initiatives to support small businesses this tax time were discussed, including the new Taxable Payments Annual Report prefill data, Small Business Instant Asset Write-Off (IAWO) and the release of the 2026 Tax Time toolkit for small business.
Communications and media campaigns continue to focus on helping small businesses ‘get it right’, while efforts to address shadow economy risks and strengthen engagement with targeted industries and communities through tailored education and outreach programs continues.
Members queried the reported statistic relating to the number of small businesses ‘getting it right’ and welcomed further detail on the supporting data and insight. The ATO acknowledged the feedback and noted the topic for further consideration.
Individuals
The key focus areas and messaging for individuals this tax time were highlighted, including the importance of taxpayers waiting for prefill information before lodging. The ATO identified car expense claims, omitted income and rental properties, including holiday homes, capital verses deduction, and interest apportionment, as ongoing areas of compliance focus.
Tax Time communications are focused on returning to basics, keeping appropriate records, and seeking advice from registered tax agents. The ATO cautioned against relying on artificial intelligence (AI) tools, noting that they may not reflect individual circumstances or may draw on outdated or unauthorised web sources.
Payday Super
An update on the implementation of Payday Super from 1 July 2026 was provided, emphasising that employers are expected to make a genuine effort to comply and to identify and correct reporting errors as soon as practicable.
Members are reminded that the Small Business Superannuation Clearing House (SBSCH) will close at 11:59 pm AEST on 30 June 2026 and we encourage practitioners to download relevant records before this date and make appropriate arrangements to move to an alternative payment channel.
The current Practical Compliance Guideline (PCG) will apply from 1 July 2026 and will be reviewed as Payday Super is implemented and future compliance approaches are determined.
Members discussed uncertainty regarding Voluntary Disclosure Statements. The ATO reiterated that employers should assess their circumstances against the PCG and noted that further communication and guidance materials, including Law Companion Rulings, will continue to be developed and released.
Dynamic PAYG instalments
The 2026–27 Federal Budget announced government support for making available a voluntary variation calculation through business software for pay as you go (PAYG) instalments from 1 July 2027. This is referred to as dynamic PAYGI, a voluntary variation calculation method designed to better align instalments with taxpayers' current business performance, supporting more accurate end-of-year tax outcomes. The Commissioner of Taxations rate will continue to be available.
The associated Practical Compliance Guideline (PCG) will be released for public consultation, and we encourage members to provide feedback. Dynamic PAYGI is currently being piloted with digital service providers and practitioners.
We note that administrative safe harbour will operate, alongside potential compliance activity in respect of taxpayers who deliberately vary PAYGI instalments to gain an unfair advantage. We acknowledge clear communications will be required in relation to the expectations relating to PAYGI variations ahead of broader compliance activities and we will engage with members on those communications.
Strengthening payment performance – The debt book and debts on hold
The ATO is adopting a collaborative approach to support timely payment and effective debt recovery, with strengthening payment performance identified as a key priority in the ATO Corporate Plan.
The ATO Payment Strategy is focused on slowing the growth of new debt while reducing the level of aged debt. We note that collectable debt has continued to increase, partly driven by GIC, and we highlighted the need for tailored support and recovery approaches given the ongoing economic pressures facing many small businesses.
Small business debt remains a significant contributor to the overall debt book and our engagement and recovery approaches will be tailored to individual circumstances. We will focus on improving on-time payment, recovering debt, and supporting taxpayers to meet their obligations as they fall due.
Members highlighted the cash flow pressures currently facing small businesses and emphasised the importance of maintaining sensitivity and empathy when considering debt-related decisions and recovery actions.
Tax Practitioner Board
The Tax Practitioners Board (TPB) provided an update on its 2026 compliance priorities, highlighting a focus on addressing high-risk and intentional misconduct that undermines the tax system, including:
- phoenixing
- shadow economy activity
- unpaid superannuation
- exploitation of vulnerable Australians
- practitioners who fail to meet their own tax obligations.
The TPB noted that Treasury has released draft legislation proposing reforms to the TPB regulatory framework. While the legislation is yet to be passed and no commencement date has been confirmed, the proposed changes would expand the range of sanctions and enforcement options available. The reforms are intended to support more proportionate regulatory responses, enabling lower-level breaches to be addressed appropriately while reserving stronger sanctions for more serious misconduct.
A TPB factsheet has recently been published on the anti-money laundering and counter-terrorism financing regime regulated by AUSTRAC. In addition, guidance is being prepared on financial abuse and guidance is also being finalised on the use of AI, emphasising that registered practitioners remain accountable for their services and advice provided using AI tools.
Members highlighted the importance of practical guidance, particularly in relation to breach reporting, AI-enabled services and false or misleading statement reporting obligations.
Tax Practitioner Improvement Consultation Working Group
Outcomes from their recent workshop were shared, which explored why tax practitioners contact the ATO, barriers to digital services and opportunities to enhance the practitioner experience. Key themes included improving website content, increasing consistency across service channels, and ensuring identified priorities are aligned with existing initiatives and work programs.
The ATO advised that it is consolidating and prioritising improvement opportunities, with an initial focus on website content and transparency, while leveraging existing forums and governance arrangements to support collaboration.
Members emphasised the importance of maintaining visibility of current priorities and related programs to support coordination and alignment across the ATO.
Other business
The group received an update from the ATO’s Frontline Operations and noted the following tabled papers:
- 2026 TPSG charter
- Modernising tax administration systems
- Parking Lot – Future discussion topics agenda items
- TPSG consultation groups updates.
Attendees
|
Organisation |
Attendee |
|---|---|
|
ATO |
Grant Brodie (Co-chair), Individuals and Intermediaries |
|
ATO |
Angela Allen, Small Business |
|
ATO |
Bec Smith, Frontline Business Improvement |
|
ATO |
Ben Kelly, Superannuation and Employer Obligations |
|
ATO |
Claire Miller, Enterprise Solutions and Technology |
|
ATO |
Michael Morton, Frontline Services |
|
ATO |
Tara Pamula, Individuals and Intermediaries |
|
Australian Bookkeepers Association |
Peter Thorp |
|
Chartered Accountants Australia and New Zealand |
Karen Liew |
|
CPA Australia |
Bill Leung |
|
Institute of Certified Bookkeepers |
Matthew Addison |
|
Institute of Financial Professionals Australia |
Kurtis Alaeddin |
|
Institute of Public Accountants |
Letty Chen |
|
National Tax & Accountants' Association |
Robyn Jacobson (Co-chair) |
|
Tax Practitioner |
Brian Greenacre |
|
Tax Practitioner |
Dean Forte |
|
Tax Practitioner |
George Tharakan |
|
Tax Practitioner |
Julian Shimmin |
|
Tax Practitioner |
Petrina Stamos |
|
Tax Practitioner |
Tracey Dunn |
|
Tax Practitioners Board |
Peter de Cure |
|
The Tax Institute |
Leanne Connor |
Apologies list
|
Organisation |
Member |
|---|---|
|
ATO |
Nicola Dykstra, Frontline Business Improvement |
|
ATO |
Rowan Fox, Small Business |
|
ATO |
Sarah Vawser, Individuals and Intermediaries |
|
Chartered Accountants Australia and New Zealand |
Susan Franks |
|
Institute of Financial Professionals Australia |
Mark Dodds |
|
Tax Practitioner |
Annette Morgan |
|
Tax Practitioner |
Ursula Lepporoli |
|
Tax Practitioners Board |
Debra Anderson |