Frontline operations review
The ATO has made improvements to frontline operations business, however, there are still future challenges. Issues relate to technology, staff turnover, and process design. Addressing these issues requires substantial and considered investment in relevant technology, improved training and recruitment strategies, and a balanced approach to risk management to enhance efficiency and consistency.
ATO payment strategy pilot
The ATO’s focus for 18 months has been to reset taxpayer expectations surrounding the approach to debt management. Targeted strategies are being tested in a pilot involving various tax agents, to not only prioritise collectible debt, but to encourage more proactive taxpayer behaviour in managing tax debt.
In the pilot, different treatments are being applied depending upon the taxpayer’s circumstances. If taxpayers do not make payment or fail to respond, firmer actions will be taken.
Debts on hold – visibility and offsetting
Earlier this year, the government announced changes to tax debts that were placed on hold before 1 January 2017. As part of the 2024–25 Budget, the government proposed giving the ATO the discretion not to apply refunds or credit to these debts. The ATO plans to make these debts visible on taxpayer accounts and is working through what support is required for affected taxpayers.
Frontline operations complaints processes and drivers
Complaints are increasing, leading to more administrative work, with an increase in tax agent complaints. The ATO is seeking to reduce complaints in 4 key areas.
Replacement refunds
The ATO emphasised including correct Electronic Funds Transfer (EFT) details to avoid cheque refunds and is considering making EFT details mandatory as well as extending the replacement refund service standard to 90 days.
Deceased estates
Many complaints arise when executors haven't contacted the ATO, or agents want to continue representing the taxpayer. However, a taxpayer’s current authority ceases upon death, and a new authority is needed.
Progress of return
The ATO emphasised the importance of online lodgment and the use of pre-filled data. The ATO has been providing additional information to agents on the reasons for delays.
Copies of documents
For lengthy document requests dating from 2011 onwards, the easiest option for tax agents is to obtain these online. Members suggested an education campaign on self-service options.
ATO business improvements
The ATO is testing how to best implement business improvements with a structured approach based on a model of prevention, improvement and transformation. Three initiatives have been proposed.
Statement of account letters
The ATO plans to reduce the number of monthly general interest charge statements to save costs and improve efficiency. The ATO will monitor if there are any unintended consequences.
Super guarantee charge statement errors
The ATO plans to automate processes to reduce manual errors, especially with super guarantee charge statements.
Penalty and interest remissions
To improve consistency in remission decisions, the ATO intends to shift requests to digital self-service, and update its guidance material.
Treasury update
Several bills were passed in the last week of parliament, with regulations to follow. Bills not passed remain for consideration at a later date. Parliament has 2 sitting weeks in February 2025, and the budget is scheduled for March.
Work on matters relating to tax system integrity continues, as per the Minister’s announcements on 6 August 2022, including legal professional privilege, secrecy, whistleblowers, fraud, and the regulation of accounting and audit firms.
Attendees
|
Organisation |
Member |
|---|---|
|
ATO |
Kirsten Fish (Co-chair), Law Design and Practice |
|
Chartered Accountants Australia and New Zealand |
Susan Franks |
|
Corporate Tax Association |
Simon Staples |
|
CPA Australia |
Alexis Kokkinos |
|
CPA Australia |
Jenny Wong |
|
Institute of Public Accountants |
Tony Greco |
|
Law Council of Australia |
Justin Byrne |
|
Law Council of Australia |
Mia Clarebrough |
|
The Tax Institute |
Jerome Tse (Co-chair) |
|
The Tax Institute |
Julie Abdalla |
|
Treasury |
Diane Brown |
|
Treasury |
Laura Berger-Thomson |
Guest attendees
|
Organisation |
Attendee |
|---|---|
|
ATO |
Adam O'Grady, Private Wealth |
|
ATO |
Andrew Watson, Individuals and Intermediaries |
|
ATO |
Anita Challen, Frontline Risk and Strategy |
|
ATO |
Anna Longley, Frontline Risk and Strategy |
|
ATO |
David Allen, ATO Executive |
|
ATO |
Grant Brodie, Frontline Services |
|
ATO |
Hector Thompson, ATO Executive |
|
ATO |
Jane Sansom, Frontline Business Improvement |
|
ATO |
Nicole Dykstra, Frontline Business Improvement |
|
ATO |
Tara Pamula, Frontline Services |
|
Chartered Accountants Australia and New Zealand |
Lynda Brumm |
Apologies
|
Organisation |
Member |
|---|---|
|
ATO |
Jeremy Hirschhorn, Client Engagement Group |
|
Chartered Accountants Australia and New Zealand |
Michael Barbour |