Environmental scan
A discussion on key insights, trends, and developments that the Australian Taxation Office (ATO) should consider as broader context for the effective operation of the tax and superannuation systems was discussed, including:
- ATO review and refining of pay as you go instalments and Div 293 letters.
- General interest charge remissions messaging and improved quality of requests.
- Payday Super and ATO guidance before 1 July 2026 commencement.
- False and misleading statements notification process.
The ATO is addressing these items as part of our ongoing work.
Modernising Tax Administration Systems improvements for Tax Time 2027
The core Payday Super legislation received Royal Assent on 6 November 2025 taking effect 1 July 2026.
The ATO outlined the upcoming Modernising Tax Administration Systems (MTAS) program changes for Tax Time 2026 and Tax Time 2027 aiming to simplify trust and beneficiary income reporting, improve accuracy, expand pre‑fill and streamline data‑matching. It will increase the amount of information that can be pre-filled, improve the way the ATO matches and uses data and allow most trust tax returns to be lodged electronically. These changes will support greater transparency, reduce the time, effort and cost of meeting tax obligations, and improve the overall experience for trustees, beneficiaries and tax agents.
Program timeline:
- Phase 1 deliverables were deployed on 1 July 2024.
- Phase 2 deliverables are planned for deployment on 1 July 2026 and 1 July 2027.
Members noted that some Tax Time 2027 reporting changes may have additional complexity, particularly where historical trust information is incomplete. Members also emphasised the need for reliable data, clear guidance and greater education for practitioners around these changes.
The ATO confirmed it is consulting widely with digital service providers, tax professionals, industry bodies, and taxpayers throughout development and implementation. Members supported continued consultation and requested targeted communication, including dedicated sessions on MTAS messaging, to help ensure practitioners are well prepared. Since then, the ATO has delivered this session with Comunication Content Working Group members.
Tax Practitioner Improvements Consultation Working Group
The ATO has established the Tax Practitioner Improvement Consultation Working Group (TPIC) to implement recommendations from the Tax Ombudsman’s ‘Registered Agent Phone Line and Service Offer Report’ and to agree on a collective set of priority improvement areas across the tax agent experience. An external TPIC member shared their insights from the first meeting held on 25 February 2026, including scope, governance, and early priorities of this group, such as improving digital services and call‑driver issues. Professional association representative noted the opportunity to invite practitioner members to a to participate in discussions relevant to their work, ensuring the ATO actively consults with practitioners actively engaged in this work.
Members highlighted gaps in agent education, noting many practitioners are strong in tax law but lack understanding of tax administration processes and available digital tools. Members also shared opportunities to improve communication with the profession, seeking clearer, more tailored messaging on issues affecting practitioners, such as offering practitioners practical guidance at webinars and conferences.
Members overall supported planned roadmap for the subsidiary group, noting significant opportunities to improve ATO consultation, digital capability and support for practitioners.
Frontline services and service commitments
The ATO shared its proposed frontline service shifts and service commitments, focusing on improving engagement, strengthening self-service options for agents, and increasing transparency through clearer performance standards and service indicators.
Members stressed the importance of enhancing the overall digital experience, in particular accessibility and self‑service tools to reduce unnecessary call drivers and improve interactions.
The ATO highlighted the default 28‑day service standard applies across many work types contributing to varied processing timeframes. Members highlighted the need for greater transparency on processing delays so they can better manage client expectations and provide informed guidance.
ATO App demo
A demonstration of key ATO app features and how they can be used to complement the service offering provided by tax practitioners was provided. Members expressed strong support for the myDeductions feature and noted that deductions uploaded via the ATO app are stored on the devise only until lodgment.
An overview of the myID and Online Access Strength was given, including the benefits of tax practitioners encouraging their clients to gain a strong online access strength and how it can prevent compromised identities and support those already compromised.
Members offered suggestions for real‑time superannuation information, the value of the app for both agents and taxpayers, and potential new features such as push notification capabilities. The ATO emphasised the importance of clear and inclusive communication, particularly for users with digital or personal vulnerabilities.
Client-to-agent linking - Proposed design for individuals and sole traders
An update on the progress of the Client‑to‑agent linking project was discussed, with the emphasis on strengthening fraud controls for taxpayers remaining the key priority.
The ATO outlined various design options under consideration for the individuals and sole traders' solution. Members are supportive of the design solution the ATO is focusing on and raised key considerations specific to this group, including individuals with limited digital capability. The ATO clarified that any solution developed for individuals and sole traders will not alter the existing process for Australian business number holders. Members highlighted the importance of ATO communication and approach to the proposed individual and sole traders’ solution.
ATO’s Vulnerability Capability
The ATO discussed the Vulnerability Capability that is increasing support for people experiencing vulnerability. Currently consultation on 4 topics is finalising. The focus is on changes to tools, training and policies that will allow ATO staff to better identify and support people experiencing vulnerability and obtain evidence in a trauma informed manner.
We acknowledge that there are practical, ethical and evidence-based challenges that will need to be worked through as the changes are implemented. Members discussed the difficulty in distinguishing genuine vulnerability from those seeking an advantage from claiming they are experiencing vulnerability and the need for approaches that are sensitive to trauma to avoid making people retelling their story.
The importance of working closely with government and non-government partners during implementation of the capability was highlighted.
Fraud environment insights
Recent case examples of fraudulent activity were shared emphasising the growing scale of identity‑related threats and the increasing sophistication of attempts to infiltrate agent systems.
We highlighted the importance of using the ATO app to protect taxpayers against fraudsters, noting the benefit of the security features, like real-time messages, that alert taxpayers when key changes are made to their accounts. Taxpayers can promptly lock their account via the ATO app if they suspect a compromise.
Members were reminded that fraud prevention requires shared responsibility. We urge agents to maintain strong cybersecurity practices such as monitoring logs, updating software, and using strong passwords.
We encourage all tax agents to ensure they maintain the security of their systems, including:
- using anti-virus and malware protection
- Regularly installing system updates
- ensuring personal email accounts are used in the setup of myID accounts rather than a work or business email
- having multifactor authentication on email accounts and on the myID app
- having notifications switched on for the myID app
- reviewing and maintaining staff accesses in Relationship Authorisation Manager and not allowing staff to share myID credentials, noting that the sharing of credentials is a breach of the terms and conditions of use.
Other business
Frontline operations gave an update to the group and noted the following tabled papers:
- Tax Practitioner Stewardship Group’s Parking Lot
- Consultation groups updates
- Payday Super update.
Attendees
|
Organisation |
Attendee |
|---|---|
|
ATO |
Grant Brodie (Co-chair), Individuals and Intermediaries |
|
ATO |
Ben Kelly, Superannuation and Employer Obligations |
|
ATO |
Claire Miller, Enterprise Solutions and Technology |
|
ATO |
Michael Morton, Frontline Services |
|
ATO |
Nicole Dykstra, Frontline Business Improvement |
|
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 |
Kurtis Alaeddin |
|
Institute of Public Accountants |
Letty Chen |
|
National Tax & Accountants' Association |
Robyn Jacobson (Co-chair) |
|
Tax Practitioner |
Annette Morgan |
|
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 Practitioner |
Ursula Lepporoli |
|
Tax Practitioners Board |
Peter de Cure |
|
The Tax Institute |
Leanne Connor |
Apologies list
|
Organisation |
Member |
|---|---|
|
ATO |
Elissa Walker, Enterprise Solutions and Technology |
|
Institute of Financial Professionals Australia |
Mark Dodds |
|
Institute of Public Accountants |
Tony Greco |
|
Tax Practitioner |
Danielle Williams |
|
Tax Practitioners Board |
Debra Anderson |