Tax Ombudsman review
(Links to strategic priority 4 – Increase trust and confidence in the tax system)
The ATO outlined its commitment to transparency, communication and collaboration with the profession, and welcomes the release of the Tax Ombudsman review into the ‘ATO’s registered agent phone line and service offer to agents’ report. The Tax Ombudsman included 4 recommendations with 14 subparts. The ATO agrees with all recommendations, except for one subpart of recommendation 3. The 4 recommendations were framed around:
- ATO’s engagement with agents
- ATO’s digital services
- Registered agent phone line
- Support for client-to-agent linking.
Members welcomed the ATO’s commitment to strengthen consultation and engagement with the profession and expressed support for ongoing collaboration.
Environmental scan
(Links to strategic priority 4 – Increase trust and confidence in the tax system)
- Processing delays
- Validation errors
- Debts on hold
- Archived trusts
- ATO communications.
Payday Super
(Links to strategic priority 5 – Recognise, empower and support future tax practitioners)
The core Payday Super legislation received Royal Assent on 6 November 2025 taking effect 1 July 2026.
Key changes for Payday Super can be found on the ATO’s website. Members noted the complex digital aspects of the Payday Super implementation and timeline to deliver these changes.
Super guarantee (SG) contributions will generally need to reach employees’ super funds within 7 business days of payday, with some exceptions that may apply. Best practice is to make the SG contribution at the same time as the employer pays qualifying earnings to their employees.
Draft guidance has been published on the ATO’s compliance approach for employers for the first year of Payday Super. Draft Practical Compliance Guideline PCG 2025/D5 Payday Suer – first year ATO compliance approach sets out what the ATO will consider when deciding how to apply compliance resources to investigate employers in the first year of Payday Super.
The Small Business Superannuation Clearing House (SBSCH) will close from 1 July 2026. Since 1 October 2025, new users have not been able to register. Employers should start planning now on how to meet SG obligations once the SBSCH is closed, including reviewing ways employers can pay their employees' super. Members highlighted the need for practical solutions to support access to data history prior to the SBSCH closure. The ATO noted that they will ensure clear communications outlining this would be provided to current users.
The Payday Super Working Group has been established to support the ATO’s implementation of Payday Super. There are 3 technical working groups, which sit under the Payday Super Working Group that manage Single Touch Payroll (STP) changes, SuperStream changes and the closure of SBSCH.
Members expressed that broader communications around these changes will support employers through them and that agents need further guidance around complex issues to support their clients.
Counter fraud program
(Links to strategic priority 2 – Safeguard the security of the tax system)
The ATO completed a consultation on an upcoming ATO app release which will enable ATO app users to verify a phone call from the ATO. The consultation gained feedback to ensure appropriate awareness and support that will be available for tax practitioners at the time of the release.
Members indicated their support for the ATO app feature and highlighted their desire for a similar concept for tax practitioners.
ATO interaction strategy 2030
(Links to strategic priority 3 – Improve tax performance for clients of tax practitioners)
The ATO’s Interactions Strategy 2030 is an enterprise level, ATO Executive endorsed strategy. It extends beyond digital interactions to encompass all ways the ATO interacts with taxpayers, including tax professionals. The strategy considers both current and emerging interaction channels and how the ATO intends to position its engagement with taxpayers as it is progressively rolled out, including the impact of emerging technologies.
The strategy establishes a whole-of-organisation approach that integrates natural business and governance process to guide current and future interactions. This approach supports collaboration and effective communication of ATO priorities, recognising the critical role tax professionals play in administrating the tax system and the implications of interaction changes for both practitioners and their clients.
The ATO welcomes the involvement of tax professionals through co-design and consultation on initiatives that support the goals of the Interaction Strategy. Members expressed support for the strategy, provided feedback on its initial direction and indicated a desire to remain engaged as initiatives evolve.
Productivity Improvements
(Links to strategic priority 3 – Improve tax performance for clients of tax practitioners)
On 4 July 2025, 30 regulators and 8 portfolio departments with a key role in improving productivity and supporting Australia’s economic growth were asked for new ideas to improve regulation and reduce unnecessary compliance burdens.
The ATO respondedExternal Link on 1 August 2025 outlining actions that were directed at increasing productivity, contributing to economic resilience and promoting budget sustainability, including actions to simplify tax administration for business.
One of the actions outlined was the ATO’s pilot to modernise pay as you go instalments (PAYGI), by ensuring that instalment amounts accurately reflected current business profitability. The approach aimed to reduce the potential for bill shock when the businesses lodged their income tax returns and ensure PAYGI instalments reflected profitability.
The ATO shared early insights from the pilot with members. Based on these early insights which yield promising results, work has commenced to explore opportunities to expand a dynamic PAYGI approach.
Members expressed support for the initiative and provided feedback on the PAYGI pilot, drawing on their client experience to highlight strengths and identify opportunities for improvement to support further expansion of the approach.
2025 wrap up
(Links to strategic priority 1 – Recognise, empower and support current and future tax practitioners)
The ATO recapped the future tax environment discussions from meetings in 2025, highlighting the following common themes:
- evolving role of tax professionals
- challenges attracting people into the profession
- increased use of outsourcing and offshoring
- knowledge and capability requirements across the profession
- impact of artificial intelligence
- digital and technology considerations, that is data management and fraud
- real-time/near real time tax lodgments, responses and event-based pre-fill
- stronger two-way communication and engagement between the profession and the ATO.
Other business
The group heard an update from Frontline Operations and the outcome of recent email consultation. The group also noted the following tabled papers:
- Tax Practitioner Stewardship Group’s Parking Lot
- ATO Consultation Group updates
- Winding Down Australia’s Cheque System.
Attendees
|
Organisation |
Member |
|---|---|
|
ATO |
Grant Brodie (Co-chair), Individuals and Intermediaries |
|
ATO |
Ben Kelly, Superannuation and Employer Obligations |
|
ATO |
Elissa Walker, Enterprise Solutions and Technology |
|
ATO |
Melanie Casey, International Support and Programs |
|
ATO |
Michael Morton, Frontline Services |
|
ATO |
Rowan Fox, Small Business |
|
ATO |
Sarah Vawser, Individuals and Intermediaries |
|
Australian Bookkeepers Association |
Peter Thorp |
|
Chartered Accountants Australia and New Zealand |
Susan Franks |
|
CPA Australia |
Bill Leung |
|
Institute of Certified Bookkeepers |
Matthew Addison |
|
Institute of Financial Professionals Australia |
Phil Broderick |
|
Institute of Public Accountants |
Tony Greco |
|
National Tax and Accountants Association |
Rodney Wilson |
|
Tax Practitioner |
Brian Greenacre |
|
Tax Practitioner |
Danielle Williams |
|
Tax Practitioner |
Dean Forte |
|
Tax Practitioner |
George Tharakan |
|
Tax Practitioner |
Julian Shimmin |
|
Tax Practitioner |
Ken Thomas |
|
Tax Practitioner |
Petrina Stamos |
|
Tax Practitioner |
Tracey Dunn |
|
Tax Practitioners Board |
Debra Anderson |
|
The Tax Institute |
Leanne Connor |