Action item update
Item 01 – SMS notification of External Collection Agency (ECA) action
This item is closed. Members asked about an advanced notice via email or SMS. This service is not available as part of the ECA approach – it is an Australian Taxation Office (ATO) issued pre-referral warning letter (PRWL) and then notification from the ECA to say the ATO has referred their debt.
The ATO correspondence area is reviewing the SMS suite. They noted SMS can lead to a lot of scam/media enquiries.
Item 02 – PRWL client list availability for agents
This item is still under investigation and will remain open.
Lodge and pay reset
The ATO are issuing pre-referral warning letters before external collection agencies start in early 2024.
There has been recent coverage in the media around debts on hold. We have paused the distribution of awareness letters and the process is being reviewed.
Member comments
- Consider the need for a stronger posture stance in relation to new debt/obligations including a different narrative and working style for enduring debt that originated during the pandemic.
- The need to manage old debt differently and keep working with small business.
- Debts on hold were invisible for many years; noting the landscape has changed, and we need to tread slowly and gently with old debts.
Improving client payment habits
As we tighten our payment posture, it is not about ceasing help and assistance for clients who genuinely need it. It is based on understanding what a client genuinely needs to help them get back on track.
General interest charge (GIC) will be a key point in payment conversations, ensuring clients are fully aware of how GIC works and the amount they should expect to pay over the term of the payment plan.
Member comments
- The frequency of ATO statements could be reviewed.
- Could support further development of indicators that best determine business viability.
- Some agents might be positioned to assure their client’s current capacity to pay, without predicting future viability, for example a current statement of non-operating cash flow might assist.
- Improved transparency for agents and clients of what information is required prior to a call will support better information being provided and more successful payment negotiations.
- The ATO should look to schedule an appointment for discussions, that is booking in a call time.
- Clients who are initiating a call rather than waiting to be called are taking a proactive stance – consider prioritising these calls.
The ATO noted the importance of providing clarity and certainty for agents and clients to support conversations. It was agreed that providing this information will help to set expectations and provide a reference point to drive the conversation.
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Action item |
03 – Payment conversation procedures |
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Due date |
27 February 2024 |
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Responsibility |
Claire O'Neill, ATO |
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Action item details |
Payment plan procedures including staff conversation narrative to be shared with working group members to seek insights and support future enhancements. |
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Action item |
04 – Lodge and Pay Working Group future topics |
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Due date |
27 February 2024 |
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Responsibility |
Anita Challen, ATO |
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Action item details |
A plan of future topics to be discussed in 2024 (in order of priority) to be shared with working group members. |
General business
A scenario was shared with the group about a client receiving a debt call who had paid their BAS debt in full within 4 days of the due date. Noting BPAY can take 4-5 days if using a regional bank or additional processing time if paid on a public holiday/weekend.
Different payment reference numbers can cause confusion for clients, especially in the current environment with concern around scams. This confusion can add to payment delays.
The ATO advised the following reviews are planned or underway:
- outbound telephony campaigns as well as the sequencing and timing of different client interactions
- approach to improve visibility and treatment based on client segmentation, including opportunities to better recognise those clients who will self-resolve without ATO actions.
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Action item |
05 – Enhanced payment conversation presentation |
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Due date |
5 December 2023 |
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Responsibility |
Claire O'Neill, ATO |
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Action item details |
A shareable version of the enhanced payment conversations presentation to be provided to members via tpsg@ato.gov.au. |
Out of session questions can be sent to tpsg@ato.gov.au, next meeting date to be advised.