Welcome and introduction
Co-chairs Melanie Casey and Mike Behling welcomed members to the Tax Profession Digital Implementation Group (TPDIG) November meeting and confirmed the agenda and confirmed there were no conflicts of interest.
Six new members were welcomed to their 2-year membership tenure and 4 returning members were thanked for their continuing contribution to the group.
Members were provided with an outline of the group’s purpose and expected outcomes.
Action item update
20230821-01 – ATO IT projects – status and forward plan
Agenda item will be tabled for further discussion during a later meeting in 2024.
20230821-02 – Strengthening digital systems
Closed.
2030 Tax Practitioner Experience Strategy
Strategic Goal 2 – Safeguard the security of the tax, super and registry data, and IT systems
Strengthening digital systems – Online access strength
The Australian Taxation Office (ATO) advised members fraudulent behaviours are evolving and we are planning a range of initiatives to strengthen ATO digital system integrity. We are committed to improving the client and tax professionals experience and continue to look at ways we can improve current processes maintaining the security of client records and the information we hold.
We have measures in place to protect against fraud as well as resources for clients to use in protecting their information. A digital ID, such as myGovID, is the most secure way to access our online services and we encourage clients to use this where possible.
Strong online access is now available for your individual and sole trader clients using ATO online services. This is to better protect their identity and increase their online security when transacting with us.
Strong online access only applies to ATO online services, it does not impact your clients myGov account or other linked services. More information is available for you and your clients at Online security.
Member comments
The current experience of linking to myGovID is not ideal.
The ATO advised work is being done with Services Australia to make improvements.
A member agreed myGovID is a must for higher level of security but wanted to know how the profession can champion an increase in online security for their clients.
It was noted that increasing a client’s credentials is not an easy task, as agents are unable to assist individual clients in the process. Many clients don’t have passports, limiting the ability for the client to strengthen their credentials.
Cyber working group – Introduction and workshop
The ATO proposed the establishment of a special purpose Tax Profession Cyber Security working group to commence in 2024.
The group aims to bring together stakeholders who have a shared interest, responsibility and/or expertise in managing cyber security within the digital ecosystem that underpins the tax, super, and registry systems in response to the ATO’s key focus on managing cybersecurity as outlined in the ATO Corporate Plan 2023–24.
The Tax Profession Cyber Security working group will be a working group comprising of members from the:
- ATO
- Tax Practitioners Board
- tax profession
- software industry.
It is a subsidiary of the TPDIG.
A workshop activity was facilitated whereby members provided feedback on the role, scope, and potential membership of this working group.
Members were supportive of the establishment of this working group in 2024 but advised that the scope of the group needed to be tighter and focus primarily on building foundation level cyber security capability across the tax profession.
Digital activity statement transition
The ATO discussed the shift of clients away from paper to a contemporary digital experience over the past 5 years and the requirement for ongoing improvements for clients.
There are 4.6 million activity statements issued by paper with 85% of these clients having an agent link, 40% of that group have the agent as a postal address and 4.1% are lodged by paper.
They discussed the need to shift of clients away from using paper to a more contemporary, digital experience. There are various reasons for the shift but primarily they are due to the high cost to maintain, large numbers of client errors and avoidable telephone interactions. Currently over 300,000 paper preference clients have incorrect postal addresses, with undeliverable activity statements, that generate failure to lodge penalties and general interest charges accruing for the client.
To gain insights on both client and agent experience in this matter, group members were asked to consider key issues inhibiting digital interactions with these clients, and what support we can provide to assist clients to shift to digital interactions.
Member comments
It was noted the paper activity statements serve as reminders to pay, a reason why clients still want paper.
Clients are unable to tell the difference between a genuine interaction from the ATO versus a scam. Receiving a paper notification is evidence the interaction is genuinely from the ATO.
Clients prefer paper notifications as the paper statement has the correct payment reference number for that activity statement, noting that the payment reference numbers do change.
User access in software
The ATO facilitated a discussion and workshop activity to gain a shared understanding of potential vulnerabilities in the current practitioner lodgment service and explore options to address them in the short term.
Members articulated several potential vulnerabilities in the current service offer and provided a range of suggestions.
The ATO will undertake further analysis, develop an action plan and report back to the group in 2024.
Client-to-agent linking
The ATO provided an update on the deployment of the client-to-agent linking that 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 throughout consultation on this work and advised the feedback enabled the development of communication products, tailored support material for both agents and clients to help with the transition phase.
Additionally, members were advised that consultation is being planned and discussions will begin next year on the system and software approach for the next phase including individuals and sole traders.
Functions available from 4 October 2023 for all entities with an ABN include client nomination – Online services for agents on-demand report.
This report provides a real-time on-demand report that allows agents to view the status of agent nominations for their practice.
Functions available from 13 November 2023 for all entities with an ABN include:
- nomination expiry period extended to 28 days
- An agreement was reached by the working group to extend the nomination expiry date from 7 days to 28 days to cater for the size of the next deployment population and operating practices of tax agents.
- Registered agent number (RAN)-to-RAN transfer for larger practices
- This enhancement was developed based on feedback from the pilot group. It allows agent practices with multiple RANs to transfer clients between RANs without the clients needing to provide an agent nomination. This will support large firms.
- Income tax agents access to fringe benefits tax (FBT) account
- This enhancement allows income tax agents to access FBT view without requiring the client to re-nominate is beneficial and will save time.
Member comments
A request was made for an information session for all relevant consultative forums to provide an update on the next implementation of client-to-agent linking. This would ensure that all stakeholder forums get the same information.
It was mentioned that clients will not change agents due to the work required.
Enhancement of communications and messaging is required.
Late lodgments due to BAS Agents being delinked and having to request to be relinked to client, especially with superannuation role.
BAS agents are exhausted with all the changes (delinking of BAS Agents) and are looking to exit the industry.
Strategic Goal 3 – Improve tax performance for clients of tax practitioners
New ato.gov.au
The ATO provided members with an update and live demonstration on the new website platform and the progress towards delivery in early December 2023.
The current ato.gov.au website sits on an aging platform, which is approaching end of service life. The ATO has procured a new website platform and we are progressing towards delivery of a new website.
The ATO has conducted significant external engagement against all client segments and worked closely with internal stakeholders to design the new website. There will be a comprehensive campaign to let the community and websites users know of the change. Key points to note:
- home page is popular topics – which will be driven by the ATO’s priorities
- saved links will still work on the new website
- one or 2 more releases to fix some bugs (issues we know about and have received feedback on).
- machine learning – search engine will get smarter with more usage.
We are doing extensive validation to ensure the new website is performing as expected before we launch. This includes a ‘Public Beta’ period where the community can explore the new site.
Public Beta commenced early November 2023 and will stay in Beta until we are confident all the issues are resolved.
We encourage you to explore the refreshed website and provide feedback by the survey link in the banner.
Member comments
Will all links from the original website automatically carried over?
The ATO confirmed, yes, all links will be carried over.
A member noted access to printing guidance material and PDF is good but cautioned that the option to print and download from a URL is not ideal, advising people will get nervous about using this option.
It was noted the search functionality has greatly improved but a question was asked if AI will be used on the new ato.gov.au platform.
The ATO advised AI will not be implemented in the short term.
|
Action item |
20231121-01 |
|
Due date |
November 2023 |
|
Responsibility |
David Ensbey, ATO |
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Action item details |
To provide members with details of functionality with QC codes Quick codes (QC) are the unique identifiers at the bottom of each ato.gov.au web page. If you know the quick code, you can search using ‘QC’ and the number to access specific pieces of content. The only QC function is to support a quick search capability. |
Strategic Goal 4 – Increase trust and confidence in the tax, super and registry systems
Environmental scan
External co-chair Mike Behling asked members to raise issues that are currently impacting the tax profession from the digital perspective, these included:
- compromised client identity
- software development and education; the impact on the profession
- BAS agent profession impacted by staffing and resourcing issues
- significant outages in Online services for agents – updates to be posted more frequently.
|
Action item |
20230821-01 |
|
Due date |
November 2023 |
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Responsibility |
Kath Anderson, ATO |
|
Action item details |
Staff competency versus behaviour and restriction to system under HR laws. Need to look at system constraints from ATO perspective – as HR said agent was unable to restrict work of the staff member. |
|
Action item |
20230821-02 |
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Due date |
November 2023 |
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Responsibility |
Peta Lonergan, ATO |
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Action item details |
Practice Statement PSLA 2007/1GA you have the ability generally attempt you can disregard in general circumstance. Support staff don’t understand – just lodge. Has the ruling been extended/revised? Take offline for the right area out of session |
Strategic Goal 5 – Empower tax practitioners to add value to their clients through sustainable operations
Data minimisation and outcomes from DSPANZ focus group
Digital Service Providers Australia New Zealand (DSPANZ) member Michael Wright updated the group on progress made by a DSPANZ Working Group to develop data retention guidance for digital service providers (DSPs).
DSPs are seeking guidance on their obligations in relation to data retention, particularly for former clients, that is those who no longer pay a software subscription fee to the DSP.
TPDIG members noted and supported the progress that has been made to date with the draft DSPANZ submission – ‘Data Minimisation and Retention Best Practice Guidance for Australian Digital Services Providers’.
Members were advised that the submission when finalised is guidance only and is not binding for DSPs.
The ATO advised that while it supports the need for DSPs to responsibly manage data, we re-affirm the position that record keeping obligations ultimately rest with the taxpayer.
Strategic Goal 6 – Improve small business performance and level the playing field
Improve Small Business tax performance
The ATO advised members that a key focus area in the ATO Corporate Plan is to improve Small Business tax performance. Updates on the pilots underway to test the hypotheses of what could improve tax performance and streamline the tax experience for small business was presented.
The current pilots are testing a series of hypotheses surrounding right time payment and reporting to support small business meet their obligations (noting the OECD principles in Tax Admin 3.0 – aligning the time between when a tax event occurs with reporting and payment); and making guidance more consumable at the time small business needs it, through embedding it into the natural systems used by small business.
- Right Time GST Payments
- Right Time GST Reporting
- Monthly GST and PAYGW Reporting
- Guidance in Software (building confidence and certainty into natural systems) – Division 7A.
Member comments
A member suggested the ATO could conduct pilots before implementation to test the benefit to business and the drive for this.
Some warned:
- there is a need to be careful with the impact on small business, as most small business operators have been through a really tough economic time, which is not yet over
- business may not want to do monthly reporting due to the cost – unless it was integrated into their natural systems.
Some suggested:
- a software package could include a nudge tool into their programs to remind small business of their obligations
- simplify business accounting systems to help business to manage their own monthly reporting which will allow their agent to then focus on quarterly obligations and adjustments, which avoids additional costs.
|
Action item |
20231121-01 |
|
Due date |
March 2024 |
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Responsibility |
Michael Morton, ATO |
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Action item details |
Provide TPDIG members with an update on outcomes from the pilots, post evaluation in 2024 |