Welcome and introduction
Co-chairs Melanie Casey and Mike Behling welcomed members to the Tax Profession Digital Implementation Group (TPDIG) meeting. The group welcomed new members Bill Leung, CPA Australia and Jason Roberts, MYOB and thanked exiting members Neville Birthisel, Institute of Financial Professionals Australia and Kath Anderson, ATO.
Modernisation of Trust Administration Systems
(Links to strategic priority – Empower tax practitioners to add value to their clients through sustainable operations)
The Australian Taxation Office (ATO) led discussion on the Modernisation of Trust Administration Systems (MTAS). The project is a multi-phased, ATO-wide strategy aimed at improving the integrity of the tax system by working with digital service providers (DSPs) to improve the quality, accuracy and transparency of trust and beneficiary data. The update included proposed Tax Time 2024 changes relating to the MTAS project and communication plans to support these changes.
Member comments
Members noted the project is being implemented in collaboration with DSPs, including co-design with the DSP working group. This is a significant matter for DSPs, it impacts many forms and requires a substantial amount of time and investment.
2024 Tax Professional Digital Series Experience Survey
(Links to strategic priority – Improve tax performance for clients of tax practitioners)
The ATO shared preliminary findings from the biennial tax practitioner digital services experiences survey. The survey forms an important part of the ATO's evidence-based, systematic approach to drive improved digital experiences for tax professionals. The survey was issued to 10,000 agents (65% tax agents and 35% BAS agents) and over 1,000 responses have been received to date. The final report will be provided to the group.
Member comments
Members agreed that due to the timing of the survey, results may have been impacted by client-to-agent linking and changes to Online services for agents. Members are interested in the post-implementation review of client-to-agent linking when the final report is issued.
Client-to-agent linking and verification
(Links to strategic priority – Improve tax performance for clients of tax practitioners)
The ATO led discussion on client-to-agent linking and verification, including the planned delivery of new messaging in Online services for agents in April to deter the de-linking of BAS agents. The ATO also gave an update on the client-to-agent linking working group.
The ATO has been rolling out client-to-agent linking fraud protection changes to businesses since the pilot in June 2022, and from November 2023 the ATO expanded linking to all Australian business number entities, excluding sole-traders.
The ATO understands this is an important matter for agents and wants to provide visibility of next steps. The ATO reiterated the purpose of client-to-agent linking is to address fraud and provide protection against bad actors for agents and their clients. To date, over 122,000 clients have completed client-to-agent linking via online nomination or ATO assistance channels. There have been no instances of fraudulent takeover of agents’ clients since the introduction of the changes.
The ATO acknowledged professional associations have been advocating for their clients and providing feedback throughout the process. The ATO noted that while fraud risk has been mitigated it is keen to understand if there are other things that can be done, and consultation and feedback is continuing.
Member comments
Members raised concerns over the de-linking of BAS agents, and agents adding themselves to incorrect accounts. The ATO will introduce enhanced messaging in April and will continue to monitor this risk.
Members expressed concern that the Tax Practitioners Board will be reactive in resolving inappropriate agent opportunistic behaviour.
Members discussed core behaviour relating to clients who are unable to provide agents with their tax file number and the need to ensure proposed nudge messaging will address this. Members noted that the wording of the nudge messaging was developed in consultation with key members of the TPDIG.
Improve small business tax performance
(Links to strategic priority – Improve small business performance and level the playing field)
The ATO led a workshop of TPDIG and Tax Practitioner Stewardship Group members to explore opportunities to improve small business tax performance. The ATO is keen to consider what can be done within the current systems and processes, and to provide opportunities to collaborate on future ideas to improve small business tax performance.
Member comments
Members provided the following key insights:
- education and awareness is important, there is no one size fits all approach
- targeted communications to agents are beneficial but too often guidance falls short
- new businesses present the opportunity to get clients into good processes and prevent future issues
- more touch points are needed as this creates greater engagement
- more business-to-business tax information is needed to enable businesses to make informed and confident decisions
- there is a need to create real-time insights
- incentives are a complex problem and care should be taken not to pitch incentives at the wrong time, wrong place, or at the wrong levels.
Environmental scan
The group discussed insights, trends, developments including:
- the taxable payments annual report
- locked client accounts which are not linked to compromised clients
- Division 7A of the Income Tax Assessment Act 1936
- visibility of the IT environment and future ATO IT plans
- digital security.
Other business
The group endorsed the updated TPDIG charter and noted the following updates:
- Payday Super
- ATO use of hyperlinks in unsolicited SMS.