2023 Completed matters

To seek feedback to inform the development of the National Tax Clinic grant opportunity guidelines.

The National Tax Clinic program is a government-funded initiative that serves a dual purpose:

offering tax support to unrepresented taxpayers who may not have access to tax advice and assistance due to economic, social, or personal factors

providing practical experience for students undertaking studies in tax related courses under the supervision of a qualified tax professional at participating universities and TAFE institutions.

The program is supported by the ATO (as grants administrator), noting that tax clinics function independently from the ATO. Tax clinics are currently operated by 15 universities throughout Australia.

In the 2023–24 Federal Budget, the Australian Government announced funding for 5 new tax clinics from 1 January 2025, with at least 2 clinics to be delivered by TAFEs. The expansion of the program to TAFEs, which have a strong presence in regional areas, will assist small businesses who do not currently have easy access to professional tax assistance.

The ATO will conduct an open competitive grant process and is seeking stakeholder feedback to inform the development of the grant opportunity guidelines.

• Academics – existing and potential tax clinic supervisors
• Students – undertaking study in tax related courses
• Tax professionals
• Recipients of advice through the National Tax Clinic program
• Community support organisations

Feedback has been used to develop the National Tax Clinic Expansion Open Competitive Opportunity Guidelines.

Maryam Awan, Objections and Review
maryam.awan@ato.gov.au
Phone 03 9247 0510

To seek feedback on the proposed draft taxation determination from industry representatives prior to the publication of the draft for public consultation.

The ATO is developing a taxation determination on the deductibility of expenses incurred by superannuation funds in establishing and maintaining a trustee risk reserve.

Section 56 of the Superannuation Industry (Supervision) Act 1993 was amended effective from 1 January 2022, such that any provision in the governing rules of a superannuation entity (fund) is void in so far as it would have the effect of exempting a trustee of the entity from or indemnifying a trustee of the entity in respect of, certain penalties.

Impacted funds and their trustees have taken different approaches to address the risk of exposure to penalties arising from the amendments, including making payments to establish or build a trustee risk reserve.

The taxation determination will set out the Commissioner of Taxation’s views on the deductibility of these payments under section 8-1 of the Income Tax Assessment Act 1997.

• Superannuation industry body
• Professional associations

Targeted consultation resulted in updated wording within the draft taxation determination (TD) to clarify that the TD addresses the payments made by the fund trustee, in its capacity as trustee, to the trustee in its own capacity.

The draft TD will now proceed to public consultation and be published on ato.go.au mid-December 2023. 

Ernest Lui, Public Groups
ernest.lui@ato.gov.au
Phone 02 9374 2901

To explore the options available to digital service providers to replace the Standard Business Reporting Platform 1 (SBR1) payment summary service.

As part of the ATO rationalising its platform investment, the SBR1 channel will be decommissioned. A limited number of digital service providers are still using the payment summary service on SBR1. Digital service providers using the SBR1 payment summary service will need to transition to a new or current lodgment channel.

• Digital service providers
• Department of Employment and Workplace Relations

Feedback received from the consultation will inform and guide the future decommissioning of the SBR1 payment summary service. It will also guide the development of alternative lodgment channels, ensuring a smooth transition for all stakeholders.

Karen Spicer, Digital Partnership Office, Enterprise Solutions and Technology
karen.spicer@ato.gov.au
Phone 02 4725 7288

To seek feedback on the partnership tax return product and understand the potential impacts of changes to the partnership tax return lodgment process.

The ATO is consulting to gain a better understanding of the current user experience for the partnership tax return including distribution statements, user behaviours, and how the product could be improved.

• Tax professionals
• Partnerships
• Digital service providers

Feedback provided valuable understanding of how partnerships and their agents interact with the partnership tax return, and how digital service providers build this service in software. These insights will be considered in the scoping and design of potential enhancements to the service.

Angela Hucker, Private Wealth
angela.hucker@ato.gov.au
Phone 03 9275 9557

To obtain feedback on the trust and beneficiary income tax return changes scheduled to be introduced for TT24 and affirm tax agent support.

The Modernisation of Trust Administration Systems (MTAS) project is an ATO wide strategy to improve the quality, accuracy and integrity of annual income tax return information reported by trustees and beneficiaries. The project will deliver improvements to the:

• lodgment experience for trustees and beneficiaries and provide greater support to meet their reporting obligations
• administration and processing of trust reporting obligations
• ATO’s data driven decision-making process including those which inform compliance and assurance activities.

• Tax agents

Feedback from the consultation sessions, where appropriate, has been incorporated into:

• specific design areas for the planned TT24 changes
• process of implementation for those changes.

Nicholas Bell, Private Wealth
nicholas.bell@ato.gov.au
Phone 08 8208 1165

To request feedback and intelligence from tax professionals on their current use of the client communication preference function within Online services for agents.

We are consulting to gain a better understanding of:

How communication preferences are currently used, or why users choose not to.

What users like/do not like about communication preferences.

How can we improve the service for users.

• Employer representatives
• Tax agents
• BAS agents

Feedback received indicated that tax and BAS agents:

• want to increase the receipt of digital communications for their clients but are finding challenges in implementing in the ATO’s current channels and digital service offers
• that setting up client communication preferences via Online services for agents can be confusing
• would like the ATO to improve the functions of digital communications services and their associated training materials and increase awareness of these services.

Feedback will be considered for future enhancement of these services.

Henry Baxter, Strategy and Support
henry.baxter@ato.gov.au
Phone 08 8208 3167

To explore and gather insights into the challenges individuals face within the superannuation system.

To then develop suitable products to assist individuals have greater control of their superannuation, according to their life stage and circumstances.

The needs and attitudes of individuals changes throughout their life. In addition, the system is complex and difficult to navigate. The ATO is keen to better understand individual requirements in relation to their super.

• Community
• Professional Associations
• Industry reps
• Individuals Stewardship Group
• Superannuation Industry Stewardship Group
• Tax Practitioner Stewardship Group
• Other government groups, forums, and agencies.

Feedback provided valuable insights and suggestions for potential improvements and opportunities to the way we support individuals with their superannuation.

Justin Heinemann, Superannuation and Employer Obligations
mailto:justin.heinemann@ato.gov.au
Phone 07 3213 3423

To seek feedback on public advice and guidance needs for publicly listed and multinational businesses undertaking certain capital management activities.

Capital management is an important consideration for publicly listed and multinational businesses. The ATO receives a significant volume of applications for binding advice through the rulings system on the consequences of specific capital management transactions by publicly listed and multinational businesses who are considering potential capital management activities on similar fact patterns. Applications for rulings are typically on the tax consequences of:

• returns of share capital
• dividends paid prior to a scheme of arrangement.

We are reviewing whether our existing advice and guidance needs to be updated or if new advice or guidance needs to be developed. Appropriately designed public advice and guidance products will lead to higher levels of certainty and greater efficiencies for taxpayers, advisers and the ATO through both decreased demand for one-to-one rulings and more efficient ruling processes where they are still required.

• Publicly listed and multinational businesses undertaking capital management activities
• Tax professional associations
• Tax practitioners

Feedback has informed the ATO’s understanding of how public groups and multinational enterprises engage with the ruling system when they undertake certain capital management activities.

These insights will be considered in scoping potential improvements to our public advice and guidance with respect to capital management transactions.

Scott Woods, Public Groups
PGIPAGUnit@ato.gov.au
Phone 02 4923 1480

To seek feedback on proposed updates to the effective life determinations process.

We have previously published a new effective life determination for certain depreciating assets each year. The determination is also published annually in a new taxation ruling (effective life ruling) – see Taxation Ruling TR 2022/1 Income tax: effective life of depreciating assets (applicable from 1 July 2022).

We are looking to improve the experience for both taxpayers and ATO staff, where the resources required align with the community need for effective life determinations.

The updates to the process we are considering include:

• publishing the effective life ruling content on ato.gov.au, with links to the latest Legislative Instrument CompilationExternal Link for Tables A and B of the Schedule
• phasing out annual effective life reviews to instead make determinations as required.

• Professional associations
• Tax professionals
• Members of            
  • Large Business Stewardship Group
  • Tax Practitioner Stewardship Group

No feedback was received.

The ATO will publish effective life ruling content on ato.gov.au and phase out the annual effective life review process, instead making determinations as required. More information on how determinations will be made will be published on ato.gov.au and promoted through social media and our usual communication channels.

Sean Bielanowski, Public Groups and International
EffectiveLifeCOE@ato.gov.au
Phone 07 3213 5729

To seek feedback on proposed enhancements to the information repository for digital service providers (DSPs).

In 2019, the ATO established an information repository for DSPs in Online services for DSPs to provide:

• timely information to DSPs to support them in the production of tax and superannuation related software
• information to help troubleshoot common problems
• practical and procedural guidance
• transparency of engagement and consultation activities.

The ATO is exploring opportunities to improve the user experience. 

Digital service providers 

Feedback received was incorporated into the design, layout and navigation of the new Online services for DPS hub. The Knowledge Base and Collaboration Hub have been combined into the new DPS hub, and the improved navigation is organised by function.

Chanara Fraser, Digital Partnership Office, Enterprise Solutions and Technology
chanara.fraser@ato.gov.au
Phone 02 9374 1210

To seek feedback on proposed updates to web guidance.

Crypto assets have been identified as a significant and emerging trend.

The rapid rise of crypto assets has resulted in a variety of issues in relation to their tax treatment.

We are updating guidance on ato.gov.au to provide greater certainty to taxpayers and support their compliance with tax obligations.

• National Tax Liaison Group
• Treasury
• Blockchain industry body
• Board of Taxation
• Tax practitioners

Consultation provided valuable feedback which is being considered for incorporation into the updated web guidance.

Klarence Lim, Individuals and Intermediaries
klarence.lim@ato.gov.au
Phone 08 9268 0845

To seek feedback on proposed additional Tax consequences on sale of small-scale land subdivisions examples.

The ATO is seeking to expand on the recently published Tax consequences on sale of small scale land subdivisionsExternal Link.

Two examples are provided in the existing content, but we are expanding with the addition of 2 more. The additional examples conclude the sale is not part of an isolated profit-making transaction. These will further inform taxpayers and tax advisers on how the ATO generally interprets the distinction between capital and revenue.

These examples will continue to apply the principles from Taxation Ruling TR 92/3 Income tax: whether profits on isolated transactions are income and Miscellaneous Taxation Ruling MT 2006/1 The New Tax System: the meaning of entity carrying on an enterprise for the purposes of entitlement to an Australian Business Number.

• Private Groups Stewardship Group
• Property and Construction Stakeholder Relationship Forum

Consultation provided valuable feedback which will be considered in finalisation of the examples and in any future enhancements to content on ato.gov.au

Ashley Warner, Private Wealth
ashley.warner@ato.gov.au
Phone 07 3149 5705

To seek insights into ways the ATO can reduce the number of outbound cheques being issued to clients with agents.

Traditionally, some government agencies have been significant users of cheque payments, but this is changing. Australian Government agencies have been taking steps to reduce payments by cheque, e.g. The Department of Human Services stopped issuing cheques for welfare payments through Centrelink in January 2016 and for the Medicare rebate and Pharmaceutical Benefits Scheme refund payments in July 2016.

Despite a whole-of-government focus to reduce issuing cheques, the number of cheques being issued to taxpayers has not decreased as expected.

We are seeking insights from tax agents to understand:

• their perspectives on why cheques being issued is increasing
• how they manage the input and maintenance of financial institution account details for their clients within their practice
• ways the ATO can work collaboratively with the community to reduce cheques.

Tax agents

Feedback provided understanding of opportunities to reduce the number of cheques being issued to clients through tax agents.

Tina Markov, Client Account Services
tina.markov@ato.gov.au
Phone 08 8208 1428

To seek feedback on the proposed draft taxation determination prior to publication of the draft for public consultation.

The ATO is developing a taxation determination on deductions for fees paid for financial advice that will broaden and replace Taxation Determination TD 95/60 Income tax: are fees paid for obtaining investment advice an allowable deduction under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) for taxpayers who are not carrying on an investment business? which was originally released in 1995 and last updated in 2012.

The taxation determination will:

• set out the Commissioner of Taxation’s preliminary view on the deductibility of financial advice fees under sections 8-1 (deductions) or 25-5 (deductions for tax-related expenses) of the ITAA 1997 for individuals who are not carrying on a business
• provide more certainty to taxpayers and tax professionals on tax deductions for fees paid for financial advice.

• National Tax Liaison Group
• Financial services professional associations
• Financial advice providers

Feedback received is being considered for incorporation into the draft taxation determination.

Danijela Jablanovic, Individuals and Intermediaries
danijela.jablanovic@ato.gov.au
Phone 07 3213 5864

To co-design Digital Services Gateway (DSG) features and Application Programming Interfaces (APIs).

The DSG was implemented in 2021 to enable lightweight APIs to support digital service providers deliver tax and superannuation services.

Digital service providers

Consultation is discontinued. The decision to discontinue this matter was made because relevant discussions on the development of DSG APIs occurred and were reported through ATO consultation groups. This ensured valuable insights and feedback were considered without duplicating efforts.

Sonia Lark, Digital Partnership Office, Enterprise Solutions and Technology
sonia.lark@ato.gov.au
Phone 02 4725 7460

To seek feedback on and gauge interest in the use of Online services for agents practice mail messages to advise outstanding client lodgment and/or payment obligations and necessary actions to be taken.

The ATO currently makes phone calls to tax agents for each client that has an outstanding lodgment and/or payment obligation, often leading to multiple calls to the same agent.

The ATO is seeking feedback from participants who piloted receiving Online services for agents practice mail messages regarding outstanding lodgment and/or payment obligations. This digital interaction combines multiple clients with outstanding obligations in one message, in lieu of telephony contact for each client individually. The aim is to understand agents’ appetite for the use of this digital channel and identify any issues and/or opportunities with the process.

Tax agents who have multiple clients with outstanding lodgment and/or payment obligations.

Feedback confirmed the value of utilising digital platforms versus telephone interactions for managing outstanding debt and lodgment obligations, providing tax agents with an improved experience.

George Tsangari, Lodge and Pay
george.tsangari@ato.gov.au
Phone 08 7422 2770