Welcome and introduction
The co-chairs welcomed members to the Tax Profession Digital Implementation Group (TPDIG) meeting, noting apologies and confirming that there were no conflicts of interest declared.
ATO digital strategy
(Links to strategic priority – Safeguard the security of the tax, super and registry systems)
The Australian Taxation Office (ATO) continues to focus on delivery a range of new and improved digital services and platforms and strengthening the integrity of its systems. It is looking at improving what we do and not just a matter of replacing technology.
We aim to better understand the needs and priorities of taxpayers, ecosystem partners and staff over the next few years while managing expectations for delivery in a tight fiscal environment.
With fraud and identity crime continuing to rise, we are working on addressing and reducing these risks behind the scenes with real time, event-based taxation. Client-to-agent linking is one example of an implemented services that has reduced fraud.
Members were reminded to send through any ideas and suggestions for improvements and these will be directed to the Digital Strategy implementation team.
Member comments
Members highlighted some of the system challenges when interacting with the ATO.
They acknowledged that changes to systems require significant investment and where possible, technology proposals should come with the appropriate budget to ensure implementation.
Members commented on the decline in satisfaction of digital services and suggested that we consider working with agents to identify which parts of the system are broken and address those first.
Compromised client online access strength
A digital ID, such as myGovID, is the most secure way to access ATO online services and help protect agents and their clients against identity crime.
When a taxpayer accesses ATO online services through myGov, the sign in method they have used with the highest identity strength becomes their online access strength and will be used for all future access.
Members were reminded that when they have clients who feel their identity has been compromised, they should contact the ATO immediately. A ‘strong’ online access strength (currently a strong myGovID) restores real time access to ATO online services for individual victims of identity theft and pre-fill tax information for registered agents.
Member comments
Concerns were raised with the ATO’s processes and call centre scripting that applies when agents notify the ATO of fraudulent client returns and refunds. This includes the requirement that agents lodge amended returns. The ATO will confirm its internal processes and call centre scripting.
Members also discussed the processes for clients without an Australian passport and for restoring a client’s account where the client has established online access strength.
Guide for Access Manager
(Links to strategic priority – Improve tax performance for clients of tax practitioners)
A confidential discussion was undertaken on draft Access Manager best practice guidelines for Online services for agents and how this could align to SBR-enabled software. A guided discussion via breakout groups gathered feedback from members.
The ATO will distil the feedback and report back at a future meeting.
Online services for agents – practice mail
The ATO is currently undertaking a stocktake and review of the Online services for agents practice mail function. The purpose of this review is to develop an informed set of recommendations to improve the practice mail experience.
The findings were presented from the review to date with member feedback back sought. The feedback will be used to inform the review recommendations.
Member comments
Practice mail was noted as the preferred channel for engaging with the ATO, although it has become difficult to use efficiently and may no longer be fit for purpose. Feedback was provided on several changes felt would improve the overall experience including:
- using practice mail as a secure two-way channel for communicating between the ATO and agents (submitting paper forms via practice mail instead of posting in forms)
- a site map of the topics available
- reviewing the topics in practice mail
- considering a triage system for practice mail topics to reduce calls
- adopting a fast key code approach to practice mail subjects.
It was noted that while all suggestions will be considered, there may be system and resource implications that prevent some suggestions from being adopted.
Members noted that improvements to practice mail and making it fit for purpose will improve agent confidence in the system.
The ATO confirmed they would provide members with updates on the progress of this work.
Modernisation of Trust Administration Systems
From 1 July 2024 the following changes to trust and beneficiary reporting were successfully delivered as part of the Modernisation of Trust Administration Systems (MTAS) project, impacting the 2023–24 financial year and onwards:
- The following 4 labels in the statement of distribution – which is part of the trust tax return (TTR)
- gross capital gain
- capital losses applied
- capital gains tax (CGT) discount applied
- CGT small business concessions applied.
- A new trust income schedule that all trust beneficiary types who receive trust income will need to lodge with their tax return.
- New data validations to the TTR form integrated into tax agent software, practitioner lodgment service.
- Nudge messaging for Individual beneficiaries lodging via myTax or tax agent software.
The project communication strategy to support the 1 July 2024 changes delivered messages through industry stakeholder groups, ato.gov.au and industry newsletter/newsrooms/bulletins.
The dedicated MTAS page on ato.gov.au provides links to the all supporting materials and instructions. Any future changes to the MTAS will focus on improved data quality and availability.
Member comments
Members asked that any further changes be communicated earlier and that the ATO ensures messaging is consistent between web content and guidance material. They expressed concerns that agents and clients are not fully aware of the changes and don’t necessarily understand the impacts for them. The ATO agreed to look at the best options for dissemination of messages.
It was acknowledged that the changes implemented are working as intended and have resolved some of the issues around franking credits.
Members were asked to send through any lodgment/reporting issues they are seeing to the ATO.
Environmental scan
Members led a 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:
- the Code of Conduct changes being proposed by the Tax Practitioners Board and the impacts they are having on the agent community
- record keeping within digital service provider (DSP) software
- EFT reconciliation report and the ATO’s service (digital service provider members were asked to provide feedback to the ATO on the EFT reconciliation report)
- communication regarding the general purpose financial statement lodgments
- client lists being available for downloading through Online services for agents, (The ATO agreed to investigate why agents are not able to download client lists)
- substitute of accounting period returns
- entities changing to large pay as you go withholding
- use of Co-Pilot
- Proposal for DSPs to be registered as tax agents.
Other business
The group noted the following tabled papers:
- Tax Professionals Digital Services Experience survey – discussion summary and next steps
- Small Business Future Tax Administration
- Client-to-Agent Linking update
- DSP Strategic Working Group update
- Locking of inactive client records in Online services for agents.
Members were updated on the establishment of the Tax Profession Cyber Security Working Group and that its inaugural meeting is anticipated for October 2024.
The ATO acknowledged the contribution of external group co-chair Mike Behling. His tenure will cease at the conclusion of the meeting and Michal Wright of the Access Group has been appointed as the new co-chair.