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Tax Profession Digital Implementation Group key messages 30 May 2024

Key topics discussed at the Tax Profession Digital Implementation Group meeting 30 May 2024.

Published 17 July 2024

Welcome and introduction

ATO Co-chair Melanie Casey and External Co-chair Mike Behling welcomed members to the Tax Profession Digital Implementation Group (TPDIG) meeting. Apologies were noted and no conflicts of interest were identified.

Tax Professional digital services experience – survey results

(Links to strategic priority – Recognise, empower and support current and future tax practitioners)

The ATO provided an update on the outcome of the Tax Professional Digital Services Experience Survey that was conducted in February 2024. This is the second time this survey has been conducted, with the first done in 2022.

With 1,400 responses received and the introduction of free text fields, new insights are being drawn from the survey responses which included:

  • Satisfaction with digital services highly correlates with overall satisfaction with the ATO.
  • 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 professional’s digital experience.
  • Tax professionals are increasingly concerned around keeping client information secure.
  • The top 3 drivers of agent satisfaction with their digital service experience are
    • receiving helpful and prompt assistance when contacting the ATO about their digital services
    • having the opportunity to provide input into the ATO’s design and development of digital services
    • the ability to user their digital services effectively.

During the session, the ATO led 3 break-out discussions to explore member’s thoughts and initial responses with respect to specific results of decreased satisfaction, cyber/information security, and consultation and engagement.

The ATO explained that survey results and discussion insights will be used to inform the direction of future digital service strategies.

Member comments

Members provided the following feedback and observations:

  • In relation to help and support, the feasibility of an online live help chat within Online services for agents was raised, however it was noted that while the ATO has used one in the past for Tax Help, there are challenges in being able to adequately resource it.
  • The timing of the survey likely impacted the results given challenges with client-to-agent linking and de-linking of BAS agents at that period but noted that accidental delinking seems to have decreased.

The fraud ecosystem

(Links to strategic priority – Protect the high levels of engagement and integrity in the tax, super and registry systems)

The ATO led a discussion on fraud typologies explaining that there are a broad spectrum of fraud typologies and that it is not just about dollars but about information. Fraud also includes the ‘stealing of information to do other things’.

The ATO provides Trusted Access to digital systems as they recognise that agents and their staff require access to do their job and service their clients effectively.

Fraud typologies include:

  • Identity theft or takeover through myGov ID.
  • Fraud on the client, fraud on the ATO.
  • Linking clients without authorization.
  • Facilitation of Financial crime.

Discussion occurred around cyber security and many agents’ misconceptions about their own level of security. It was suggested that members could help by making sure they communicate across their practices/association what their members need to do to comply – such as mandatory style training, for example, integrity training.

Member comments

Members provided the following feedback and observations:

  • They could benefit from the ATO preparing cyber security/fraud policies to use and share with their members.
  • Members asked for greater transparency on what the agent community are doing so that they could then assist by training their agents in what to do.
  • The ATO needs to change the narrative around agent led fraud as most agents are doing the right thing.
  • Members requested the ability to use Access Manager to set up payment plans which are currently prohibited. The ATO agreed to look at Access Manager Permissions to understand what might be feasible.

Tax Profession Cyber Security Working Group

(Links to strategic priority – Safeguard the security of the tax, super and registry systems)

The ATO outlined the partnered approach they are taking with the tax practitioner community around cyber security with the establishment of the Tax Professional Cyber Security Working Group.

An Expression of Interest is underway to identify appropriate members for the working group, which is likely to commence in August with a focus on:

  • Threats – scams, fraud, identity theft
  • Protection – access controls, virus protection
  • Plans – procedures, reporting
  • Education and engagement – communication and culture
  • Specific programs of interest – myGovID, client-to-agent linking

This group will work together with the ATO’s Cyber Security Stakeholder Group to ensure the 2 groups are aligned and not duplicating areas of focus.

Member comments

Members provided the following feedback and observations:

  • Tax Practitioner Stewardship Group (TPSG) members suggested that they are not certain their professional association members are reading the cyber security information they are sharing with them.
  • The new working group needs to be very practitioner-focused and practical in nature.
  • Discussion occurred around what could be done to ensure agents compliance with cyber security obligations, such as mandatory training, nudge reminders. This discussion will be picked up in the new working group.

Environmental scan

(Links to strategic priority – Increase trust and confidence in the tax, super and registry systems)

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:

  • Trust changes coming through for Tax Time.
  • Accuracy of taxable payments annual reports reporting.
  • Updating Director’s details with Australian Securities and Investments Commission and the Australian Business Registry.
  • Locking of inactive client records in Online services for agents.
  • Clients receiving a lower-than-expected refund due to offsetting.

Digital service delivery for Tax Time 2024

(Links to strategic priority – Recognise, empower and support current and future tax practitioners)

The ATO outlined several digital impacts for Tax time:

  • correspondence preferencing
  • limiting BAS amendments (original lodgment plus 4 amendments)
  • pop-up warnings when linking to an already linked client
  • new subjects into practice mail
  • pre-generated reports with the older reports no longer being available after 1 July.
  • self-assessed income tax exempt form for not for-profits and associated Access Manager permissions
  • decommissioning of AUSKey credentials
  • enhanced pre-fill to include Australian Government benefit payments
  • self-education expenses to be reported under a new label
  • Modernising trust administration systems (MTAS) improvements to the lodgment experience for trustees and beneficiaries to meet their reporting obligations, including administration and processing of reporting obligations.

Member comments

Members were not aware of changes to the self-education label with items at D5 now being captured in item D4 work-related self-education expenses.

Digital improvements framework

(Links to strategic priority – Improve tax performance for clients of tax practitioners)

The ATO led the update on the digital improvements framework. It was highlighted that suggested improvements to Online services for agents were received from multiple channels.

Around 50 proposed improvements have undergone a scoping and triage process to be categorised into priority groupings.

The ATO agreed to keep members informed as to how implementation of the framework progresses.

Member comments

It would be helpful to know the improvements the ATO is considering so members can work within their own association membership on the narrative.

Other business

The group noted the MTAS tabled paper.

The ATO reminded members about the Terms of Reference for online platforms and the use of BOTs/scrapers over Online services for agents will not be tolerated.

Members raised concerns around Single Touch Payroll and not being able to see what information was in the final report although noted this was not a significant issue.

It was noted that there appears to be an increase in taxpayers not receiving notifications of when things are being sent to their myGov accounts. The ATO requested that members send through specific examples of this so that they could be followed up on as this was not a known issue.

Looking forward

(Links to strategic priority – Recognise, empower and support current and future tax practitioners)

The ATO led a discussion on the future direction of the TPDIG and whether it was meeting its objectives or changes were required.

The ATO acknowledged the time investment of members and expressed their appreciation for the time members gave.

It was agreed that the group provides an opportunity for the three main players: ATO, agents, digital service providers (DSPs), to come together to discuss a broad range of topics impacting the profession and practitioners.

It was noted that there may be more of an opportunity to utilise DSPs in solving some of the digital challenges the ATO experiences.

While there is some overlap with the TPSG, topics do have a digital focus that are of value for discussion.

It was suggested that the TPDIG could be used as part of Post Implementation Review processes for key projects like Client-to-agent linking and provide learnings of where programs may not have been successful.

The ATO confirmed that membership to the TPDIG is merit based but will explore opportunities to engage younger members/members new to the profession where appropriate.

Attendees

Attendees list

Organisation

Attendee

ATO

Melanie Casey (Co-chair), Individuals and Intermediaries

ATO

Andrew Watson, Individuals and Intermediaries

ATO

Anita Chaganti, Enterprise Solutions and Technology

ATO

Benjamin Lurje, Individuals and Intermediaries

ATO

Carl Bennett, Individuals and Intermediaries

ATO

Claire Miller, Enterprise Solutions and Technology

ATO

David Mendoza, Individuals and Intermediaries

ATO

Kylie Smith, Individuals and Intermediaries

ATO

Laurel Griffin, Individuals and Intermediaries

ATO

Sarah Vawser, Individuals and Intermediaries

ATO

Sonia Lark, Enterprise Solutions and Technology

Australian Bookkeepers Association

Peter Thorp

BAS Agent

Kerrie Jarrius

Chartered Accountants Australia and New Zealand

Karen Liew

CPA Australia

Bill Leung

Digital Service Providers Australia New Zealand

Mike Behling (Co-chair)

Institute of Certified Bookkeepers

Matthew Addison

Institute of Public Accountants

Tony Greco

KPMG

Anne Pengilly

MYOB

James Roberts

National Tax and Accountants’ Association

Rodney Wilson

Pitcher Partners

Scott Laing

TaxLab

Karl Farrand

Tax Practitioner

Kerri Selby

Tax Practitioners Board

Debra Anderson

The Access Group

Michael Wright

The Tax Institute

Andrew Shead

Apologies list

Apologies list

Organisation

Member

ATO

David Baker, Individuals and Intermediaries

ATO

Natalie Ross, Enterprise Solutions and Technology

ATO

Sonia Corsini, Individuals and Intermediaries

ATO

Steve Dardo, Strategy and Support

Accrivia

Alison Johnson

Chartered Accountants Australia and New Zealand

Michael Croker

Crypto Tax Calculator

Shane Brunette

Tax Practitioner

Keith Clissold

 

QC102783