2030 Tax Practitioner Experience Strategy
Strategic Goal 1 Protect the high levels of engagement and integrity in the tax, super and registry systems
Tax Practitioners Board
Michael O’Neill provided an update on Tax Practitioners Board (TPB) activities and developments including:
- The appointment of 3 new board members, Simone Carter, Phillip Davies and Professor Kerrie Sadiq.
- The Treasury Laws Amendment (2023 Measures No. 1) Bill 2023 (TLAB 1) passed on 16 November 2023, with amendments.
- The TPB will consult with stakeholders to ensure there is guidance to assist tax practitioners to understand the operation of the law, particularly regarding the reporting of breaches and definitional issues. The TPB Governance and Standards Forum will be a key engagement forum.
Members comment
- Welcomed the TPBs commitment to consultation and co-design, noting the TPB’s own consultation channels are the right ones to use.
Environmental scan
Members discussed a range of issues, including:
- Community feedback and sentiment regarding the Client-to-agent linking process.
- Positive feedback was provided about the lodgment deferral process that was implemented in 2023, noting the significant improvement it has made for tax practitioners.
Strategic Goal 2 Safeguard the security of the tax, super and registry data and systems
Client-to-agent linking
The deployment of the client-to-agent linking went live to all entities with an Australian Business Number (ABN), excluding sole traders, on Monday 13 November. Members were thanked for their invaluable feedback which enabled the development of communication products and tailored support material for agents and clients to help with the transition phase.
The ATO acknowledged the BAS agent frustration of being delinked by a tax agent and noted that some tax agents are still adding clients via the ABN rather than tax file number despite the messaging and communications that have issued. Members agreed that it would be worthwhile for the ATO to send an email to all tax agents reminding them of the correct process when adding a client to their client list. The ATO is progressing a warning pop up message on Online services for agents when a client is added that it may result in the BAS agent being delinked.
Members were advised that consultation is being planned and discussions will begin early next year on the system and software approach for the next phase of client-to-agent linking, for individuals and sole traders.
Members comments
- Provided the ATO with feedback on negative sentiment from the profession and suggested the ATO continue to refine and promote its messaging around why client-to-agent linking is needed.
- The difficulties and frustrations associated with changing ABR details was noted.
- Phone support for client agent linking exceptions is inadequate. Angry clients are taking their frustration out on agents.
- I would like working group consultation to continue, or a similar forum established, to allow discussions to continue, particularly in relation to the solution design for individuals.
- BAS agents are exhausted from all the changes over recent years, with many changes resulting in unbillable hours as there is no product to sell. Declining margins, negative client sentiment and frustrations with clunky ATO processes and declining ATO service levels is leading some agents to want to exit the industry.
- Agents are keen to know whether the client agent linking solution for business users is the final solution given the issues the profession have been raising regarding the current solution.
Strategic Goal 4 Increase trust and confidence in the tax, super and registry systems
BAS Agent Association Group 2023 year in review and 2024 priorities
Kath Anderson led a discussion to gather members views on the operation of the forum in 2023 and opportunities for 2024.
Members confirmed the value of the forum, made suggestions for improvements and suggested themes for 2024.
Strategic Goal 6 Improve small business performance and level the playing field
Improve Small Business Tax Performance
An end of year update on the improve small business tax performance pilots and the outcomes from the digital think tank was provided.
The pilots are progressing in accordance with the plan and there are positive signs that the changes could assist some small businesses through:
- improved cash flow management
- positive mental health benefits
- improved lodgment and payment performance
- streamlining of some business processes.
The next 6 months will include completing the pilots, analysing the impacts, and identifying opportunities and lessons learned. We will also assess the opportunities identified through the recent think-tank.
Members comments
- The ATO should be mindful of the narrative around pilot outcomes that point to changes in behaviour, with members noting the small sample sizes and the potential for bias arising from using willing clients in the pilots. The ATO need to be very careful in extrapolating outcomes to the broader population.
- A suggestion was put forward that small businesses could report and pay monthly (on an optional basis using 'best endeavours') but be allowed to adjust quarterly without incurring penalties.
- Some options to help clients are already available and an investment in educating small businesses and agents is needed.
- Shifting to a monthly cycle may disadvantage some clients as there are no agent concessions.
Lodge and pay
AN update was provided on progress of the ATO initiatives being implemented to improve payment culture. Member feedback was sought on:
- Strategies to assist clients who have capacity to meet current payment obligations but are having difficulty paying historic COVID-19 related debts within a 2-year payment plan timeframe.
- How to message and increase awareness around the ATO’s approach in escalating to firmer actions, including director penalty notices and disclosure of business tax debts.
Feedback was sought from members on any guidance products that are required to assist having payment and lodgment conversations or areas for improvement in the correspondence issued relating to firmer action activity.
Members comments
- Members encouraged the ATO to provide certainty around the firmer action process, providing details or a timeline of what clients can expect and when, will allow agents to set client expectations.
- Members agreed to give some thought to how the ATO could identify businesses that would be viable, other than for a historic debt, ahead of a planned discussion around this at upcoming Lodge and Pay Working Group meetings.
Other business
The following papers were formally tabled:
- Single touch payroll and activity statements update
- Payday Super update
A member asked about a point raised at a previous meeting around the employee onboarding process myGov. This has been captured as an action item to be followed up at the next meeting or out of session.