National Tax Liaison Group key messages 20 August 2024

Proposed and current consultation

The Australian Taxation Office (ATO) provided an overview of recent consultation, including areas of focus and the number of people involved in consultation activities.

Proposed areas for consultation include an upcoming draft Practical Compliance Guideline (PCG) on capital raised for funding franked distributions and a draft PCG on the application of general anti-avoidance provisions to personal services businesses. Additionally, we will consult on a Law Administration Practice Statement on exceptions to the public country-by-country reporting scheme, and on future guidance on cryptocurrency taxation.

We are actively engaging with stakeholders on the Sharing Economy Reporting Regime (SERR), thin capitalisation measure, global minimum tax (Pillar Two) and section 99B of the Income Tax Assessment Act 1936.

Members noted there can sometimes be gaps in engagement and suggested regular check-ins and proactive communication. The complexity of issues should dictate the method of consultation, with more intricate matters requiring discussions in addition to written updates. The ATO remains committed to transparency and continuous improvement in its consultation processes.

Evaluation of past consultation

An overview and evaluation of the consultation process for supplementary annual GST returns for Top 100 and Top 1,000 public and multinational business taxpayers was provided. We engaged with various stakeholder groups to understand the guidance needed for completing the return. Key learnings included the importance of clear communication and assurance that stakeholders would continue to receive updates. Feedback resulted in updates to questions and more extensive guidance, with a post-implementation review planned 12 months after return lodgment.

Confidential consultation

An update on the implementation of confidentiality deeds was provided. An organisational deed and an individual deed have been developed in consultation with National Tax Liaison Group members to ensure a proportional and straightforward approach to confidential consultation.

APSC capability review

The Australian Public Service Commission (APSC) capability reviews aim to embed continuous improvement across the Australian public service, with the ATO's review commencing on 14 October 2024 and spanning 6 months. The process includes self-assessment, external review, and implementation phases. Members stressed the importance of the ATO's leadership role and the need for a thorough capability review. They suggested engaging with external stakeholders to gather broader insights.

Conflict of interest management

It was noted that conflicts of interest are not uncommon and should not deter participation in ATO consultation. However, they need to be reported and managed appropriately. We have introduced a new form for recording conflict of interest declarations and management plans, which has been developed for external participants in ATO consultation activities. The form is complementary to the annual integrity declaration.

Treasury update

Treasury provided updates on the Treasurer’s address to the A50 Economic Forum, which highlighted government priorities including housing, inflation, investment and Future Made in Australia. Treasury also discussed production tax incentives, legal professional privilege, and ongoing consultations related to fraud and PwC issues. Additionally, Treasury explained the challenges of managing consultation timeframes, with members expressing willingness to collaborate but noting difficulties relating to the timing of some consultation activities.

Attendees

Guest attendees

Apologies list