Rob Heferen, Commissioner of Taxation
CPA Tax Forum 2026
Sydney, Thursday 20 August 2026
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Thank you, and good morning everyone.
It’s a pleasure to be back here for another CPA Tax Forum. Thank you Dale, Jenny and Elinor for the invitation.
I’d like to acknowledge the Traditional Owners of the lands on which we meet today and pay my respects to Elders past and present. I also extend that respect to any First Nations people in the audience today.
Forums like this are a great opportunity to speak directly with tax professionals. Whenever I do, I am reminded that while the tax system reflects society’s desired policy, it runs on relationships.
The relationship between taxpayers and their advisers, and the relationship between the profession and the ATO, and then taxpayers and the ATO, ultimately create the trust that underpins our tax system.
This year’s theme ‘Tax in Transition’ is fitting, since change and uncertainty are things we all navigate.
Some things we can count on. The due date for lodging a BAS and the due date for payment. These are known and don’t really change. But, we also know technology will keep changing how people do business, interact with government, and access services.
But not everything is predictable. Last year who would have predicted oil prices at this level? This kind of economic uncertainty can result in real financial pressure for households and businesses. And, of course, there will be many others.
That’s the reality we all operate in. As participants in the tax system, we need to plan for the things we know are coming and be ready to respond to the things we can’t foresee, both the known unknowns and the unknown unknowns.
It’s against this backdrop we recently released the ATO Strategy.
The ATO Strategy builds on our purpose and vision.
Our purpose is clear: we collect tax so that government can deliver services for the Australian community.
When we do that well, we move towards our vision: an Australia where every taxpayer meets their obligations because complying is easy, help is tailored, and deliberate non-compliance has consequences.
And the next foundational piece, the Strategy, outlines the five shifts that move us towards a system where all taxpayers can comply from the start.
So, the ATO Strategy identifies five strategic shifts that will guide our work and decisions over the coming years.
These shifts are:
- simplifying the tax experience
- closing the payment gap
- strengthening the system
- partnering across the ecosystem
- equipping a future-ready workforce.
Today I want to focus on what these shifts mean in practice, particularly for our partnership with the tax profession.
Shift 1: Simplifying the tax experience
Our first shift is simplifying the tax experience.
This is, importantly, not about making the tax system less rigorous. Simplifying is about making it easier for people to get their obligations right, within what is an extremely complicated system overlayed on quite complicated business arrangements.
At the ATO we cannot change the system itself. But we can create tools and mechanisms to simplify its administration.
We’ve come a long way in terms of reducing the time and effort for individuals to comply with their tax obligations.
In the mid-90’s, it was estimated that individual taxpayers with straightforward affairs spent on average 9.5 hours to complete their tax returns using TaxPack.
In contrast in 2024, nearly 2.4 million taxpayers in similar circumstances took around 8 minutes to lodge their tax return using myTax in ATO online services. How did this change come about? Largely due to comprehensive withholding and extensive prefilling.
Imagine what a similar shift could do for business taxpayers?
We’re working to do this. Admittedly with small steps.
Using taxable payments annual report data, we’re pre-filling information for some contractors. We’re anticipating these changes will see self-preparers save up to 30 minutes, and for tax agents to see reductions of up to 22% in preparation time for those income tax returns.
This is just a start.
One of the things we need to think about is how we implement the Government’s new tax reform measures while continuing our progress towards a simpler experience.
These reforms include significant changes, and turning those policy settings into something that works in practice will be particularly important. For us, this means providing clear public advice and guidance, staff training, practical administrative approaches, and tools and support to assist taxpayers and advisers to understand the changes.
This is what ‘Tax in transition’ is all about. As the system evolves in response to economic changes, community expectations and government priorities, we need to make sure those changes translate into a system that’s easier, not harder, for people to navigate.
That is where the ATO and the profession have a shared interest.
You see how these changes directly affect taxpayers. That practical feedback will help us identify issues early and address implementation challenges before they become compliance problems.
Shift 2: Closing the payment gap
The second shift of the Strategy is closing the payment gap.
The vast majority of Australians and businesses do the right thing. Of tax collected, around 90% is paid on time.
But the tax owed to the government and not paid remains substantial.
Much of that tax owed is self-reported and is not in dispute. A significant proportion relates to amounts already withheld from employees or collected from consumers as GST but not passed on to government.
But this shift is about more than debt collection. It is about maintaining the integrity of the tax system itself.
Sometimes there can be a perception that tax is money owed to the ATO. Of course, it isn't. Tax is owed to the Australian community.
The taxes we collect fund the services and infrastructure that Australians rely on every day. Our healthcare system, roads, schools, defence, social services and disaster support all depend on people meeting their obligations.
At its heart, paying tax is part of a social contract. Most people do the right thing, and they rightly expect others to do the same. When some choose not to meet their obligations, it places a greater burden on everyone else and undermines confidence in the system.
That is why closing the payment gap is such an important shift in our Strategy. It is about protecting fairness, maintaining trust, and ensuring the system works as intended for everyone.
This includes making sure all obligations are paid in full and on time. Of course, sometimes businesses will struggle.
And that is the best time for them to act. The best debt is the debt that never arises.
Historically, tax administration often focused on identifying problems after they occurred. Increasingly, our focus is on helping people stay on track, identifying risks sooner, and preventing problems from occurring in the first place.
Rather than allowing obligations to accumulate and become more difficult to manage, we want to move toward models where liabilities are reported, managed and paid closer to real time.
We've already seen this approach through initiatives such as Payday Super. Moving obligations closer to the point at which funds are earned or withheld reduces the risk of debt building up in the first place. It also means taxpayers avoid accumulating interest charges and other consequences associated with overdue debts.
Subject to legislation, from July 2027, Dynamic PAYGI will allow small and medium businesses to tailor their instalment payments throughout the year, reflecting real-time business conditions. This will give businesses access to monthly payments to avoid a large lump sum payment. It will mean that businesses can choose that when they earn more, they pay more and when they earn less, they pay less, and importantly avoiding bill shock at the end of the year.
Ultimately, the easiest debt to manage is the one that never enters the system.
We continue to strengthen our approach to debt recovery and payment performance by using a range of firmer actions.
Those who meet their obligations expect a level playing field and maintaining that fairness is critical to community confidence in the system.
That said, we understand circumstances change and viable businesses can face cash flow pressures.
This is where tax professionals play a critical role. Often, you are the first to see the warning signs that a client is falling behind.
It is important to note the first place for businesses to go when they are falling behind is their bank, or other financial service provider. The tax office should not be thought of as a source of finance.
But businesses should engage with us early rather than waiting for debts to grow. We want taxpayers to have the opportunity to seek remission where it is fair and reasonable to do so.
Our focus for granting remissions is on those who want to do the right thing, and usually do, but can’t. Our requirements for remission have not changed, but we’ve implemented a range of administrative improvements, including around consistency in our approach to remission requests.
These improvements align with the recommendations identified in the Tax Ombudsman's review into the ATO's administration of General Interest Charge (GIC) remission.
The report provided valuable feedback on opportunities to improve consistency, transparency, and the taxpayer experience.
We are working on making further sustainable improvements to the administration of taxpayer relief provisions, including remissions. Our focus remains on ensuring remission decisions are fair, transparent, consistent, and responsive to taxpayers' individual circumstances.
And, of course, consistency takes time.
Shift 3: Strengthening the system
Our third shift is strengthening the system.
The strength of Australia’s tax system is reflected in the fact that most taxpayers want to do the right thing and make a genuine effort to meet their obligations. And to help, the system needs to be as fraud-resistant as possible.
We’re continuing to invest in tools like the ATO app and myID, with the goal of balancing simplicity with enhanced security.
The app provides taxpayers with improved visibility of their account information and activity and supports early detection of suspicious behaviour. Its features can also act as an early warning system, with real-time alerts prompting your clients to contact you if they notice unexpected activity.
We’ve seen a number of cases which demonstrate the app is working as intended. One taxpayer in particular benefited from these features shortly after downloading the app.
Late in the night, they received in-app security messages notifying them that their bank account had been deleted, then updated, and their tax return lodged online.
Knowing they hadn’t done any of these actions, the taxpayer was able to lock their ATO account via the app outside of business hours. In the morning, they contacted the ATO who confirmed the activity was fraudulent and that the taxpayer's account was secure.
As the environment becomes more complex and threats become more sophisticated, maintaining confidence in the system requires constant effort.
This shift is about ensuring the system continues to work fairly and as intended.
Recently we identified fraud activity targeting the systems of a small number of tax professionals. The activity involved malicious links embedded in things like job applications, CVs and inbound emails. When clicked, these links installed unauthorised software or malware on agent devices, potentially giving third parties access to agent systems, client information, and the ability to interact with the ATO through OSFA.
We were quickly able to intervene, putting additional security measures and controls in place to protect those agents and their clients.
We also used our close relationship with the agent profession to quickly bring the threat to their attention, provide advice on what to look for, and outline steps to take if concerned that their system had been compromised.
This reflects our strong partnership in administering the tax system and our shared commitment to keeping taxpayer information safe and secure.
This is fundamental to ensure the system operates as intended.
Shift 4: Partnering across the ecosystem
The fourth shift is partnering across the ecosystem.
This is the most relevant shift for those of you here.
The tax system is a diverse ecosystem where government, taxpayers, software providers, professional associations, and advisers interact with each other.
For this ecosystem to thrive, there needs to be effective collaboration, communication, and trust between them.
For the ATO, it means listening carefully, engaging early, and seeking to understand the practical impacts of our decisions.
For industry, it means actively providing feedback when something is not working and bringing forward ideas about how we can improve existing processes.
Consultation groups and forums such as the Tax Practitioner Stewardship Group and BAS Agent Advisory Group, bring together representatives from industry, the tax profession, and business to help shape our services, communications, and future priorities.
These partnerships give us valuable insights into emerging issues and the practical challenges members are facing. They help us test ideas, improve our services and ensure our support reflects the experience of the community.
One of the things we value most about our engagement with tax professionals is your willingness to bring practical insight to complex issues.
That is why, earlier this week, I wrote to all internal and external stewardship group co-chairs, requesting a standing agenda item near the beginning of each meeting focusing on red tape reduction and system improvement.
This will provide the space to identify and discuss opportunities for improvement with a collective focus on solutions, not just issues.
Whether we are discussing new measures, emerging risks, digital transformation or taxpayer behaviour, you help us better understand how the system operates in the real world.
And as we develop tools to simplify our system, you are uniquely placed to help us identify where those friction points exist.
But your role extends beyond providing feedback. You also play an important role in helping close the payment gap by supporting your clients to stay on top of their tax obligations and address issues early.
Those conversations can make a real difference, and taxpayers rely on you for that advice.
The insight we receive from scrutineers is also valuable.
The presence of scrutineers provides confidence to the community that outcomes are accurate and can be trusted.
That confidence matters.
At the ATO, where integrity is at the core of everything we do, it is essential that taxpayers have faith in not only the results, but in the process used to achieve them.
I think we’re lucky to have the ANAO and the Tax Ombudsman to keep us accountable and make sure we are continuously improving.
Our role is to collect the tax owed and in doing so, we must stay aware of the realities facing the community we serve. But there’s often a delicate balance and the ANAO’s recent report suggesting we need to do more to collect small business debt is a case in point.
Turning to digital service providers, we recognise DSPs are critical partners in Australia's tax, superannuation, and business reporting ecosystem.
Every day, millions of Australians meet their obligations through software products, digital channels and integrated business systems developed and maintained by the DSPs.
We need to recognise this and ensure the system evolves accordingly.
Shift 5: Equipping a future-ready workforce
The fifth shift is equipping a future-ready workforce.
Technology is transforming every profession, including our own.
Artificial intelligence (AI), automation and advanced analytics are creating opportunities that would have seemed impossible only a few years ago.
These technologies will not only change how the ATO operates and how tax and financial advice is delivered, but also the conditions we operate in.
While there will always be a need and want for human interaction, we need to recognise the tasks where AI is more efficient or consistent.
At the ATO, we see significant opportunities to improve productivity, service delivery, and the quality of our work. But we also have obligations to protect taxpayer information, maintain community trust, and ensure appropriate human oversight.
We often hear that people want to talk to someone. I’m not so sure.
In many cases, what I think people really want is a timely answer to their question or for their issue to be resolved quickly and accurately.
Every interaction that relies on a phone call or manual processing requires people, training, and ongoing support. Those services remain important, particularly for people with complex circumstances or those who need additional assistance.
But, in an environment where expectations continue to grow and public sector resources remain constrained, simply adding more people is not a practical long-term solution.
That is why technology, including AI, will play an increasingly important role in how we deliver services.
This is not about replacing people. It is about making better use of their expertise and enabling them to focus on the work that matters most.
AI can help us automate routine activities, process information at scale, identify risks earlier, and deliver greater consistency in how straightforward matters are handled.
What it cannot replace is judgment and accountability.
Human expertise will continue to be critical when dealing with complex matters, novel circumstances, ethical considerations, vulnerable clients, and decisions that require discretion.
We are also strengthening skills that help us better support the community, including understanding vulnerability and recognising when people need a more tailored approach.
Equipping our people with modern tools and building the capability to use them well will be essential for both the ATO and the tax profession in the years ahead.
Second Commissioner Kirsten Fish will be speaking later today about the future of tax with AI and automation, and I encourage you to attend that session.
Close
I’ll conclude today by returning to the central theme of transition. There is no ‘normal’ anymore when it comes to the global economic and technological landscape.
As an administrator, we need to keep pace with the community’s changing expectations, technology advancements, economic shifts, and government priorities.
The ATO Strategy will help us deliver on this, by setting out an ambitious and broad agenda for the years ahead.
But the success of those ambitions won’t just be determined by a strategy document. It’ll be determined by how well we work together as partners in the tax system.
If you’re keen to read more about the ATO Strategy and our recently released Corporate Plan, both are available on our website.
I’d like to acknowledge the other speakers today, in particular Diane Brown. She’s had a tough job!
I’ve had the privilege of working with Diane in a number of her roles in the Treasury and she’s brought to all of them her enormous intellect, huge work capacity and her unfailing positive outlook on both work and the people she works with.
I look forward to continuing our partnership as we implement the ATO Strategy and shape a simpler, stronger tax system for the future.
Thank you.
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