Tax Time 2024 – Readiness and Complaints
(Links to strategic priority – Increase trust and confidence in the tax, super and registry systems)
The Australian Taxation Office (ATO) outlined its readiness and preparations for Tax Time 2024 with a particular focus on telephony, processing, activity statements and complaints.
An increase in demand for calls and processing is anticipated over the coming months and the ATO is looking at ways to reduce this demand.
Agents are encouraged to use the dedicated tax agent phone line with the relevant Fast Key Code to reduce wait times. The ATO confirmed that call blocking is not used on the agent phone line. The ATO discussed the complaints process and sought member’s feedback on the drivers for including multiple clients under a single complaint.
We are consulting with agents to understand the behavioural drivers behind the high number of paper activity statements requested which is considerably higher than the number lodged via paper. Findings will be brought to a future meeting.
Members provided feedback and observations including:
- Suggestions for improving the usability of practice mail, which could reduce the need to call the agent phone line.
- Suggestions around how the ATO could support and encourage the checking of bank accounts to ensure refunds go to right bank accounts.
- Feedback regarding the call centre scripting for reversing general interest charge debt appears, and noted there is limited information available online.
Tax Practitioners Board
(Links to strategic priority – Increase trust and confidence in the tax, super and registry systems)
The Tax Practitioners Board (TPB) provided an update on the status of law reforms with a particular focus on the TPB’s breach reporting guidance.
There was a discussion about the TPB’s minimum requirements for verifying a client’s identity and whether the ATO’s client to agent linking process was sufficient to satisfy these requirements. The TPB and the ATO are currently working closely to develop further guidance to provide tax practitioners with greater clarity on the interaction between the client to agent linking process and the TPB’s proof of identity requirements.
Members provided feedback and observations including:
- Concerns with vexatious breach reporting, what is meant by a significant’ breach and impacts on public indemnity insurance. Members also noted the importance of having ‘real world’ examples in guidance material.
- Clarification of the messaging agents will receive as they come up for re-registration and the messaging for those that have recently paid their 3-year registration.
- Feedback regarding the visibility of the TPB complaints form on the TPB website.
Not-for-profit – self assessed income tax exemption reporting
(Links to strategic priority – Increase trust and confidence in the tax, super and registry systems)
The ATO provided an update on the Not-for-profit (NFP) self-assessment of income tax exemption reporting regime. The new reporting requirements were announced in the 2021–22 budget to address transparency and integrity over NFP population.
Starting from Tax Time 2024, non-charitable NFPs with an active Australian business number (ABN) are required to lodge their NFP self-review return notifying their exemption eligibility for income tax.
The ATO is taking a practical approach to compliance and NFPs will have until 31 March 2025 to lodge their assessment without penalty. The ATO will continue to consider what strategies are required to support ongoing lodgments as we prepare for next tax time.
Clients having difficulty accessing online services to lodge their NFP self-return will be able to use a Self-help phone service, 13 72 26, which is available as an interim lodgment channel during the 2023–24 transitional year.
The ATO has developed, and is progressively expanding/updating, a suit of reporting requirements to self-assess income tax exemption to assist NFPs and their agents, including recorded webinars at ato.gov.au/ATOtvExternal Link. Guidance will include a checklist for NFPs to use along with a fact sheet that professional associations can issue to their members. Members are encouraged to subscribe to the monthly NFP newsletter via the Not-for-profit newsroom.
The option of allowing BAS agents to lodge the informational return is a matter for the TPB. ATO systems do not currently support this function for BAS agents. Possible options would need to be explored following a decision by the TPB.
Members provided feedback and observations including:
Their desire for BAS agents to be able to lodge the return on behalf of NFPs.Welcoming the changes to the Change of Registration form (NAT 2943), which is now a fillable PDF, and updated guidance to assist clients in successfully submitting change of details. Members noted however that this form still needs to be mailed to the ATO and requested the ATO consider options for enabling the PDF to be lodged digitally.Tax profession digital services experience – survey results
(Links to strategic priority – Protect the high levels of engagement and integrity in the tax, super and registry systems)
The ATO updated members on the results from the digital services experience survey which was conducted in February 2024.
With approximately 1,400 responses received and the introduction of free text fields, new insights are being drawn from the survey responses.
Key insights from the survey included:
- Satisfaction with the digital service experience has decreased, particularly for BAS agents and younger tax professionals.
- The client-to-agent linking process has had an impact on tax professionals’ digital experience.
The ATO confirmed they will be undertaking engagement and consultation with the profession to better understand the key insights and consider opportunities for continuous improvement of digital services.
Members provided feedback and observations including:
- Digital interactions and expectations are greater now than they were in 2022, when the first survey was conducted. BAS and tax agents have higher expectations of their software and digital services.
- Their experience with the practice mail function within Online services for agents, including the need for timely responses to queries lodged via practice mail given the frequency of their interactions with clients.
Client-to-agent linking
(Links to strategic priority – Improve tax performance for clients of tax practitioners)
The ATO provided an update on feedback received as part of the Post Implementation Review that is currently being undertaken. RAM and myGovID processes are causing the most difficulties for agents.
Feedback is being collated and analysed from multiple sources to consider enhancements and improvements to the experience for those clients having difficulty. Complaints about BAS agents being delinked have decreased.
The ATO plans to extend similar protections to the remaining populations, that is, Individuals, Sole Traders, and non-ABN entities. Extensive consultation and change impact assessments will be undertaken for these groups to inform the solution design and delivery options.
The ATO will continue to engage and look for opportunities and further capitalise on any changes to technology that will improve the process for agents and clients.
Members provided feedback and observations including:
The benefits of having an agent notification system, rather than relying on the client letting BAS Agents know they have been nominated.The impact on agents where clients find the linking process too difficult.Corporate trusts and the supports in place to assist agents.Lodge and Pay
(Links to strategic priority – Protect the high levels of engagement and integrity in the tax, super and registry systems)
The ATO noted the 2024–25 Budget announcement providing the ATO with discretion not to offset refunds against tax debts of individuals, small businesses and not-for-profit entities, where the debts were placed on hold prior to 1 January 2017 and remain on hold. As this measure is not yet law, the ATO’s current approach remains for this Tax Time. Until the measure has been enacted, the ATO will continue pausing offsetting of debts for individuals, small businesses and not-for-profit entities that were placed on hold prior to 1 January 2017 and remain on hold. A communication strategy is being developed to explain to clients with a debt on hold how that debt will be treated.
A broader payment conversation, including a discussion regarding payment reference numbers, will be scheduled for discussion at a future meeting.
Digital service delivery for Tax Time 2024
(Links to strategic priority – Recognise, empower and support current and future tax practitioners)
The ATO provided an update on the expected changes to digital service delivery for Tax Time 2024 including:
- Changes to correspondence preferencing that allows agents to apply bulk preferencing updates to 50 clients at a time, an increase from 25).
- New subjects added to practice mail.
- Decommissioning of AUSKey credentials.
- Limiting BAS amendments (original lodgment plus 4 amendments).
- Pop-up warnings when linking to an already linked client.
Members provided feedback on difficulties in locating the phone number and fast key code for Online services for agents technical support. The ATO confirmed that agents can contact 13 76 82 with fast key code 3 3 for technical support.
Environmental scan
Members led the facilitated group discussion on insights, trends, developments and direction that the ATO should be aware of as context for the operation of the system overall, these included:
- Payday Super messaging.
- Separation certificates and whether these are still required as part of the Single Touch Payroll process.