Overview of the survey
The Top 500 client engagement survey is conducted annually to understand the experience of Top 500 groups and advisors, from their involvement with the program.
In April 2024, surveys were issued to either an inhouse representative or nominated advisor, for each Top 500 group. For the first time, advisors of multiple clients were contacted beforehand to give them a choice to complete a survey for each client, or one survey on behalf of multiple clients.
This meant that 2 additional questions were added to the survey this year:
- whether the respondent was an external advisor, and if so
- how many clients they were completing the survey for.
Overall, the response rate to the survey was 39%, an increase of 18 points from 2023, and 43% of groups were represented in survey responses. The increased response rate can be attributed to more inhouse representatives and advisors taking the time to complete the survey this year, along with some advisors opting to complete the survey on behalf of multiple clients (71% of respondents stated they were advisors, with 26% of them representing more than one client). There was also increased outreach to respondents in the weeks preceding the survey.
Overall, the survey results indicate that 66% of respondents are satisfied with the program (an increase of 8% from 2023), while 17% are neutral and 17% are dissatisfied.
Figure 1: Client satisfaction with the Top 500 program 2024.
Key insights
The key insights based on responses to multiple choice questions and free text responses, are as follows.
- Top 500 clients and advisors value our professionalism and transparency, with 93% of respondents agreeing they are treated in a professional, courteous and respectful manner.
- Respondents value the tailored one-to-one relationship and direct point of access to the ATO, that the Top 500 program affords.
- Respondents value our pragmatism, understanding, and willingness to factor in business realities and client circumstances, with 70% of respondents agreeing that the ATO has a better understanding of their circumstances than before (a 10% increase from 2023).
- While most respondents (76%) agree that the ATO understands their respective group structures, the proportion that agrees has decreased by 12% this year, and the proportion that is neutral has increased by 10% (to 12%).
- Similarly, while most respondents (71%) agree that the ATO understands the tax laws relevant to the issues in their engagements, the proportion that agrees has decreased by 8% this year, and the proportion that is neutral increased by 11% (to 20%).
- The proportion of respondents dissatisfied with the level of communication about the progress of engagements decreased by a notable 13%. However, respondents would like us to be mindful of the amount of information requested and the timing of requests. They would like more regular updates and feedback on information they’ve provided.
- The length and ongoing nature of the engagements, and focus on historical years, is cumbersome for some respondents.
- While a majority of respondents (77%) can see how tax governance assists with meeting tax obligations, only 56% feel encouraged to make the investment in improving tax governance.
- The majority of respondents disagree that the program has reduced the cost of meeting their respective groups/clients tax obligations. This is likely a reflection of the cost of external advisors that most groups use to manage the annual assurance engagement.
- The proportion of respondents who agree that the program helps in avoiding disputes later on has increased by 8%, to 63% in 2024.
Survey results on tax governance
Participants responded to questions regarding tax governance for the Top 500 program as follows.
- 77% agree
- 12% neutral
- 11% disagree
Figure 2: Graph comparing 2023 and 2024 responses regarding the extent to which understanding tax governance supports a group to meet its tax obligations.
The engagement has encouraged my [client’s] group to invest more in improving tax governance:
- 56% agree
- 26% neutral
- 18% disagree.
Figure 3: Graph comparing 2023 and 2024 responses regarding investing more in tax governance.
The engagement has provided me/my client with feedback and guidance about the effectiveness of my/their tax governance:
- 58% agree
- 24% neutral
- 18% disagree.
Information on the ATO website provides clear guidance on developing effective tax governance:
- 51% agree
- 29% neutral
- 20% disagree
Survey results on client engagement
Participants rated our client engagement as follows.
The level of communication you received about the objectives of the Top 500 program:
- 76% satisfied
- 16% neutral
- 8% dissatisfied.
The level of understanding of your (client’s) group structure:
- 76% satisfied
- 12% neutral
- 12% dissatisfied.
Figure 4: Graph comparing 2023 and 2024 responses regarding our understanding of the group structure.
The level of understanding and working knowledge of your group’s/client’s business and/or other income producing activities:
- 74% satisfied
- 11% neutral
- 15% dissatisfied.
The level of knowledge of the tax law relevant to any issues raised in the engagement:
- 71% satisfied
- 20% neutral
- 9% dissatisfied.
Figure 5: Graph comparing 2023 and 2024 responses regarding our level of knowledge of tax laws relevant to issues raised in the engagement.
The extent to which requests for information were tailored to your group’s business and/or income producing activities:
- 67% satisfied
- 14% neutral
- 19% dissatisfied.
The amount of time provided for you to respond to requests for information:
- 72% satisfied
- 9% neutral
- 19% dissatisfied.
The regularity of communication provided about the progress of the engagement:
- 64% satisfied
- 18% neutral
- 18% dissatisfied.
Figure 6: Graph comparing 2023 and 2024 responses regarding communication about the progress of engagement.
The extent to which you were treated in a professional, courteous and respectful manner:
- 93% satisfied
- 4% neutral
- 3% dissatisfied.
Figure 7: Graph comparing 2023 and 2024 responses regarding our professionalism.
The engagement with the ATO as part of the Top 500 program has had the following impact.
Directly reduced the cost of meeting my group’s / client’s tax obligations:
- 15% agree
- 18% neutral
- 67% disagree.
Figure 8: Graph comparing 2023 and 2024 responses regarding whether the program has reduced the cost of meeting tax obligations.
Shown the ATO has a better understanding of my group’s / client’s circumstances than before:
- 70% agree
- 11% neutral
- 19% disagree.
Figure 9: Figure 9: Graph comparing 2023 and 2024 responses regarding our understanding of client circumstances.
Shown the ATO listens to me / my client:
- 65% agree
- 21% neutral
- 14% disagree.
Shown that discussing matters with the ATO helps to resolve issues:
- 63% agree
- 24% neutral
- 13% disagree.
Contributed to avoiding disputes later on with the ATO:
- 63% agree
- 25% neutral
- 12% disagree.
Figure 10: Graph comparing 2023 and 2024 responses regarding whether the program contributes to avoiding disputes later on.
Improved my [client’s] confidence in engaging with the ATO:
- 58% agree
- 24% neutral
- 18% disagree.
Thinking about your experience of the Top 500 program, how strongly do you agree or disagree with the following statement?
I am / my client is aware of the tax issues that have been assured or require assurance as part of the engagement:
- 73% agree
- 8% neutral
- 19% disagree.
Engaging with the ATO helps with the following.
Resolving issues prior to lodgment:
- 65% agree
- 20% neutral
- 15% disagree.
Identifying opportunities to improve processes to meet my group’s/client’s tax obligations:
- 60% agree
- 22% neutral
- 18% disagree.
Considering the tax implications of future transactions:
- 67% agree
- 24% neutral
- 9% disagree.
What respondents said
Note: Minor adjustments may have been made to the statements below for readability purposes.
Respondents said the following.
- It feels genuinely like the ATO is intent on working with us not against us.
- Our ATO officer is able to be flexible. The ATO is mindful of our compliance deadlines/busy seasons, that is, statutory reporting, annual income tax lodgments etc.
- ATO teams are professional in their approach and readily accessible. They are also willing to take the time to engage on issues even though we may ultimately agree to disagree.
- [We] were extremely satisfied with how the ATO team handled this engagement particularly their willingness to explain their positions / views when they differed to the taxpayers.
- The existence of 2-way communication between advisor and the ATO officer, who has built a sound knowledge of the taxpayer's affairs, is of great benefit.
- The Top 500 teams generally have also been willing to facilitate introductions to other parts of the ATO to help (for example, ATO debt teams, ruling / advice teams).
- Receiving clear and tailored messaging around areas for improvement and how to grow our tax governance as a small business with limited staff has been great.
- We would request the ATO teams to be cognisant of the taxpayer’s other income tax obligations when setting deadlines for responses to requests for information.
- The program could be more timely with regards to the income years it focuses on.
- Whilst ATO provides suggestions to improve governance and or processes, some are impractical and unrealistic when you consider the resource and costs involved and practicality in the real world.