Environmental scan
(Links to strategic priority 2 – Safeguard the security of the tax system)
Members discussed insights, trends and developments that the ATO should be aware of as context for the operation of the system overall. These included:
- not-for-profit self-assessments
- ATO online services outages for system updates
- aligning business activity statement and pay as you go instalments activity statement due dates to avoid penalties for late lodgment
- New South Wales flood messaging
- family trust elections.
External fraud environment
(Links to strategic priority 2 – Safeguard the security of the tax system)
The ATO provided an update on its observations across the external fraud environment and how fraudsters and criminals are exploiting vulnerabilities in the system, including through agent practices. The ATO is ensuring there is a balance between service and security and acknowledged the importance of having preventative controls in place.
The ATO provided an update on the Counter Fraud Program and enhancements to the ATO app. Enhancements allow secure messaging and a lock feature so taxpayers can protect their account information. Members were encouraged to work with their clients to download the app and increase their Digital ID strength to strong. Once a strong ID has been set and used to access ATO services, a lower level of ID can no longer be used, lowering the risk of identity theft.
The ATO asked members to outline the issues facing the broader tax practitioner community from a fraud perspective. This will form part of the ATO’s broader assessment of fraud risks associated with agent access to ATO services, both online and through software.
Member comments
Members discussed issues around fraud and access controls across a range of scenarios, including de-linking a client when they move to a new agent, clients experiencing vulnerability, and unregistered preparers.
Members welcomed the opportunity to be part of a brainstorming session to understand the fraud vulnerabilities for tax agents.
The ATO’s purpose and vision
(Links to strategic priority 4 – Increase trust and confidence in the tax system)
The Commissioner of Taxation Rob Heferen shared the ATO’s refreshed purpose and vision.
The ATO's purpose is to collect tax so that government can deliver services for the Australian community.
The ATO's updated vision is an Australia where every taxpayer meets their obligations because:
- complying is easy
- help is tailored
- deliberate non-compliance has consequences.
The Commissioner noted tax practitioners are partners in the system and highlighted the importance of integrity. The Commissioner also discussed the findings of the Australian Public Service Commission's capability review of the ATO. The ATO is currently considering next steps as part of its response to the capability review findings.
Member comments
Members noted the community perception that there will still be a need for tax practitioners in the future and the complexity of the tax system.
Members discussed the ATO’s services and supports for agents, including Online services for agents' functionality. The ATO acknowledged member concerns and highlighted it is looking at how questions can be answered and at how staff, agents and the community interact within the system.
Members provided feedback that clients don’t necessarily agree that compliance is easy, particularly in relation to debt collection and payment plans. The ATO noted statistics suggest payment plans greater than 2 years are harder to successfully maintain to full term. Members suggested that this should be communicated to the public more broadly.
Future tax environment
(Links to strategic priority 4 – Increase trust and confidence in the tax system)
The ATO led a discussion on the future tax environment from an ATO perspective, building upon the previous meeting which focused on the tax professional perspective. The 3 areas of discussion were:
- future tax professionals, which considered tax professionals in a future environment, with the discussion centring artificial intelligence and knowledge sharing
- future tax system perspectives, which looked at the future of tax administration, including remaining contemporary with government while addressing compliance through natural business systems
- future technology, tools and services which discussed what a digital world would look like in 5 to 10 years, including client onboarding, communications channels and the data ecosystems and verifications.
The group will discuss each of these themes further at the September meeting, focusing on topics identified across the March and June meetings.
Concession review and remission request changes
(Links to strategic priority 4 – Increase trust and confidence in the tax system)
The ATO gave an overview of the review of the broader concessions portfolio, including general interest charge (GIC) remissions, payment plans, interactions within the system and the Commissioner’s powers.
The ATO is introducing several interim changes to simplify and streamline the GIC remission application process and improve timeliness, consistency and transparency of decision making. This is a result of feedback provided by tax practitioners and professional associations regarding the interest and penalty remission process.
The ATO is reviewing its administrative policy settings relating to taxpayer concessions including lodgment and payment deferrals, interest and penalty remission requests (excluding shortfall penalties) and payment plans.
The purpose of the review is to ensure there are clear and contemporary settings designed to meet intended legislative outcomes and make it easy for taxpayers and their representatives to identify eligibility for concessions, and circumstances in which concessions will not be available. Practitioners can expect engagement later in 2025.
Member comments
Members welcomed the broader review of concessions, and provided feedback on the proposed, interim streamlined GIC remission process. The ATO will review the feedback before finalising the processes.
Tax Time 2025
(Links to strategic priority 3 – Improve tax performance for clients of tax practitioners)
Small Business – Getting it right
In November 2024, the ATO launched Getting it right, a quarterly campaign aiming to support small businesses to get their tax obligations right from the start.
The ATO is sharing focus areas where there is concern small businesses are getting it wrong together with help for them to get things right. This gives small businesses a runway to get their affairs in order and increases awareness of the consequences of engaging in behaviours of concern.
The key focus areas for quarter 4 from May to June 2025 are building good habits to be ready for business, and fringe benefits tax.
Building good habits to be ready for business is a campaign to support new small business owners setting out on their small business journey to ensure they meet their tax, super, and registration obligations from the start, setting them up for success.
The fringe benefits tax campaign highlights the importance of small businesses understanding and meeting their employer obligations, including reporting and paying fringe benefits tax on time.
The key focus areas for quarter 1 2025–26 includes small businesses operating outside the system or not complying with their tax obligations in the property and construction industry and contractors omitting income. Members were asked to consider and share potential topics for future Getting it right campaigns.
The ATO will continue to support small business taxpayers all year round to help them understand and meet their tax, super and registry obligations. Building good business habits is essential for small businesses to get it right from the start and stay on track.
Individuals
Tax Time 2025 will continue the back-to-basics theme from last year and will focus on reducing confusion and misunderstanding in the community.
Messaging will include the ATO’s refreshed vision where every taxpayer meets their obligations because complying is easy, help is tailored, and deliberate non-compliance has consequences.
Key focus areas are largely consistent with last year, with an ongoing focus on:
- work related expenses
- working from home
- income from multiple sources.
The update of the ATO app will enable secure messaging and the lock feature will allow taxpayers to secure their own ATO account if they suspect fraudulent activity.
Readiness and resourcing
Overall, preparations for the delivery of Tax Time 2025 are progressing well. Additional staff have been trained to support the community during this time.
Member comments
Members provided feedback on the Getting it right campaign and suggested more work needs to be done for the ride share industry, especially those from non-English speaking backgrounds who may not understand their tax and GST obligations.
Members provided feedback on several of the announced measures and changes and suggested the ATO introduce a campaign on using logbooks, reminding taxpayers to substantiate their claims.
Members also suggested the ATO clarify that the announced $1,000 standard deduction is not yet law and can’t be claimed in the 2024–25 tax time and that, when the deduction can be claimed, it does not mean an automatic refund of $1,000.
Attendees
|
Organisation |
Member |
|---|---|
|
ATO |
Rowan Fox (Co-chair), Individuals and Intermediaries |
|
ATO |
Elissa Walker, Enterprise Solutions and Technology |
|
ATO |
Grant Brodie, Frontline Services |
|
ATO |
Michael Rowell, Enterprise Solutions and Technology |
|
ATO |
Sarah Vawser, Individuals and Intermediaries |
|
ATO |
Will Day, Small Business |
|
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 |
Mark Dodds |
|
Institute of Public Accountants |
Tony Greco |
|
National Tax and Accountants Association |
Rodney Wilson |
|
Tax Practitioner |
Annette Morgan |
|
Tax Practitioner |
Danielle Williams |
|
Tax Practitioner |
Dean Forte |
|
Tax Practitioner |
Julian Shimmin |
|
Tax Practitioner |
Keith Clissold |
|
Tax Practitioner |
Ken Thomas |
|
Tax Practitioner |
Petrina Stamos |
|
Tax Practitioner |
Phil McCann |
|
Tax Practitioner |
Steven Inglis |
|
Tax Practitioner |
Ursula Lepporoli |
|
Tax Practitioners Board |
Debra Anderson |
|
Tax Practitioners Board |
Peter DeCure |
|
The Tax Institute |
Robyn Jacobson (Co-chair) |
Apologies list
|
Organisation |
Member |
|---|---|
|
ATO |
Emma Rosenzweig, Superannuation and Employer Obligations |
|
Tax Practitioner |
Brian Greenacre |