ATO payment strategy
(Links to strategic priority 3 - Improve tax performance for clients of tax practitioners)
The Australian Taxation Office (ATO) payment strategy is focused on reducing non-payment of tax liabilities, particularly GST, PAYG withholding and Super Guarantee. We have developed key messages that form part of a targeted and phased communication approach to support the expectation that all taxpayers will pay in full and on time or will reach out to the ATO straight away if they need support.
Member comments
ATO communications and letters should have clear and consistent messaging that outline the requirements of taxpayers with these debts and the implications for not paying on time.
Concerns were raised regarding GIC remission requests and the need for improved consistency and transparency in decision making. The ATO noted this feedback and are taking steps to improve consistency.
The ATO was asked to share information with agents around the new payment strategy to assist them when informing their clients.
Small business focus areas
(Links to strategic priority 5 - Improve Small Business performance and level the playing field)
Our aim is to support small business taxpayers to meet their obligations and get it right from the start.
The ATO’s Small business team will focus on areas of the greatest impact and preventative outcomes to ensure community expectations are met regarding those who don’t meet their obligations or seek to undermine the integrity of the tax and superannuation systems.
We are evolving our engagement, prevention, right time intervention, and correction activities to shift and influence behaviours and to support small businesses to remain compliant. Including increasing transparency and consistency of our messaging to assist agents and small businesses to get it right.
We are seeking the support of BAS agents, bookkeepers and professional associations (including industry) to engage with small business on the behaviours and risks that are concerning, to help set up good habits and getting it right.
Member comments
Potential incentives to drive behavioural change across small business was suggested. For example, quarterly reporting for taxpayers with a record of good compliance and monthly reporting for those who do not.
Members are supportive of the proposed engagement program and are willing to promote these with colleagues and association members. The opportunity to leverage the strong relationship BAS agents have with their small business clients due to the frequency of their interactions was noted.
Debts on hold
(Links to strategic priority 1 - Recognise, empower and support current and future tax practitioners)
The ATO may place tax debts on hold when they have determined that it is not economically viable to actively recover debt. While we pause action to collect debts placed on hold, those debts remain legally due and payable.
Historically, we removed debts on hold from total account balances using a credit transaction. Going forward, we intend to include debts on hold on taxpayers’ ATO online services account and statement of account. This will ensure that taxpayers have visibility of the taxes they owe.
The ATO provided an update to the group on the program of work to make debts on hold visible. This includes system changes, communications to impacted taxpayers and internal change management to ensure staff are ready to support taxpayers and agents if they contact the ATO.
Feedback was sought from members on what further support agents may need to prepare for this change and support their clients as the debts are made visible.
Member comments
Concerns were raised on how debts on hold will impact other debts, payment plans and refunds.
Members expressed the importance of the ATO sharing tools and resources to help agents support their clients with debts on hold becoming visible.
Members offered their support for the ATO’s communication approach to make debts on hold visible.
Client-to-agent linking
(Links to strategic priority 6 – Safeguard the security of the tax, super and registry systems)
The ATO presented the findings of the post implementation review of client-to-agent linking for Australian business number entities (excluding sole-traders) that deployed on 13 November 2023. The new process has been protecting 4.7 million entities for 12-months and has achieved its intended outcome with a range of learnings that will inform the next phase of delivery.
The ATO provided an update on feedback, outcomes, and actions taken since deployment. Feedback has been gathered from a range of sources and stakeholders. The Client-to-agent linking steps information has recently been restructured to make information easier for agents to find.
The next steps for client-to-agent linking for individuals was discussed and members were advised that consultation on the design will commence in early 2025.
Member comments
Members raised an opportunity to include proactive notifications to let agents know that a nomination has been submitted from a client (pop-ups and notice in ‘banner box’). The ATO noted that there is ‘client nominations on demand’ reports with this information currently available in Online services for agents.
Appreciation was shared by members to the project team for their efforts and openness to receive, consider and address (where possible) industry feedback.
Environmental scan
(Links to strategic priority 4 - Increase trust and confidence in the tax, super and registry systems)
Members covered a range of issues including:
- MyID app push notifications.
- Increasing concerns around small business cash flow management.
- Community sentiment towards the ATO.
- ATO’s use of social media.
Other business
The group noted the following other business and tabled papers:
- Group member refresh in 2025.
- Open Forums – discussion items in 2025 that would be useful for BAS agents.
- Group 2024 year in review and 2025 meeting schedule.
- Upcoming Payment Gateway changes.