TPSG key messages 14 March 2024

Welcome and introduction

Co-chairs Andrew Watson and Robyn Jacobson welcomed members to the Tax Practitioner Stewardship Group (TPSG) meeting.

The group welcomed new members Elissa Walker, Australian Taxation Office (ATO) and thanked exiting members Neville Birthisel, Institute of Financial Professionals Australia and Kath Anderson, ATO.

Law reform

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

The Tax Practitioners Board (TPB) led discussion on law reform arising from the implementation of the James review recommendations and the government's response to the PwC matter.

Member comments

Members provided the following feedback and observations:

• Concerns over breach reporting under the new reforms, including how the TPB will respond to vexatious breach reporting. Given the sensitive nature of breach reporting, members suggested appropriate and sufficient guidance including a clear definition and understanding of what constitutes a ‘significant breach’.
• Challenges around an agent’s ability to identify disqualified entities, including additional costs firms may incur when employing staff. The TPB acknowledged the potential for increased costs but noted that these changes also provide an important governance and protection element that will benefit firms in the longer term.
• Risk governance is likely to be an area of growth and may be challenging for smaller practices.
• Appropriate guidance for the profession will be critical, it is important that guidance is relevant and provides real life examples.
• Professional associations noted the importance and value of early consultation and co-design, particularly in relation to any legislative instruments.

Private Wealth Behaviours of Concern, including Promoters and Tax Exploitation Program

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

The ATO discussed its enhanced focus on behaviours that are deliberately and persistently intended to undermine the tax, superannuation and registry systems. This included an update on the Promoters and Tax Exploitation Program which focuses on advisers and intermediaries who exhibit behaviours of concern, including those who influence, encourage or promote tax avoidance or evasion schemes to their clients.

Feedback was sought from members on what support, guidance and messages would assist the tax profession to understand the risks and consequences of engaging in promoted tax exploitation schemes. An upcoming media campaign was discussed, and communications will be shared with members for their continuing feedback for future campaigns.

Member comments

In considering guidance and messaging, members suggested:

• examples of how the community and professionals can identify the red flags of potential tax schemes
• guidance regarding the exemptions within the promoter penalty laws
• timely sharing of the ATO’s concerns on what they are seeing and areas of concern.

Introduction to Rob Heferen, Commissioner of Taxation

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

Commissioner Rob Heferen was introduced to members. He shared some of his career journey, his thoughts on the value of consultation, and the importance of approaching it with the right intent. He also recognised the important role the TPSG plays in the stewardship of the system.

Client Account Services

(Links to strategic priority - Safeguard the security of the tax, superannuation and registry systems)

The ATO led discussion on Client Account Services, including improvements to the process for individuals with compromised identity, and an update on the call and processing environment.

The ATO gave an overview of a recent pilot to restore real time access to ATO online services to clients with a compromised account. The ATO is looking to engage a small group of agents (and their clients) for the next phase of the pilot. Members interested in participating were asked to advise the secretariat.

Member comments

Members noted:

• there is confusion about the differences between clients who are compromised and those whose accounts are locked down
• it is important that the ATO contacts compromised clients through a trusted channel; for clients of agents, the agent is the trusted channel
• to achieve optimum outcomes, agents require a list of clients with compromised accounts and instructions on how to support clients through the process
• regarding the calls and processing environment discussion, members requested statistics on ATO call blocking.

Improving payment performance

(Links to strategic priority - Improve small business performance and level the playing field

The ATO led discussion on improving payment performance and sought feedback on upcoming activity statement communications. The ATO is starting to see the positive impact of measures that encourage more taxpayers to pay on time where they have capacity to do so, and to engage early if they cannot pay in full by the due date.

While the ATO acknowledges the economic climate is presenting challenges to some businesses, it will maintain its firmer posture on payment to continue to drive improvements in the proportion of businesses who pay their tax obligations in full and on time. This is important to ensure the ongoing health of Commonwealth collections which are used to fund important government services and programs for the community.

The ATO will take a firmer stance on non-payment of activity statement debts relating to GST, super, and pay as you go withholding, and will be very active in these markets where businesses do not pay on time or engage with the ATO. The ATO reminded members that general interest charge remission requests should be reserved for genuine exceptional cases outside a client's control.

Member comments

Members noted:

• issues with the allocation of payments to account, relating to the early payments of debts
• the importance of ATO actions reflecting ATO messaging and consistency in approaches and actions
• the value of communicating the ATO’s general interest charge remission stance via social media, the tax agent newsletter, and tax agent webinars to help ensure awareness across the tax profession.

Client-to-agent linking

(Links to strategic priority - Safeguard the security of the tax, superannuation and registry systems)

The ATO led discussion on client-to-agent linking, including the planned delivery of new messaging in Online services for agents in April to deter the inadvertent de-linking of BAS agents, and an update on the Client-to-Agent Linking Working Group.

The ATO understands client-to-agent linking is an important matter for agents and their new clients and wants to provide visibility of next steps. The purpose of client-to-agent linking is to address fraud and provide protection when bad actors take over the identities of good agents. To date, over 122,000 clients have completed client-to-agent linking, through online nomination or ATO assistance channels. Since the changes were introduced, there have been no instances of fraudulent takeover of agents’ clients by bad actors.

The ATO acknowledged the strong advocacy of the tax professional associations and working group members on behalf of the tax profession. The ATO will continue to engage with tax associations and will look for opportunities to enhance the process and further capitalise on any changes to technology that will improve the process for agents and clients.

Member comments

Members raised concerns over the media perception that professional associations have not been consulted. The ATO will work with associations to deliver a consistent message regarding the Client-to-Agent Linking Working Group consultations, and the collaboration between the ATO and the profession.

Members also noted:

• the real and significant impacts of client-to-agent linking on agents, clients and practices
• the process has proven too difficult for a number of clients, who have chosen to stay with their existing agent
• sharing success stories, promoting messaging around keeping Australian Business Register details up to date, self-help videos, improved call centre options, and alternate linking methods could improve the client experience and assist clients that aren’t digitally savvy
• planned changes to accept a drivers licence for a strong digital identity is a positive step, association members requested more information to share with their members.

Consultation groups

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

The ATO provided updates on consultation working groups including Towards 2030 Tax Practitioner Experience Strategy; the Lodge and Pay Working Group; and the Residential Rental Property Working Group. The ATO will provide members with an overview of the Communication Content Working Group.

Environmental scan

The group discussed a range of issues, including:

• Payday Super and the Small Business Superannuation Clearing House
• the research and development tax incentive
• Modernisation of Trust Administration System.

Other business

The group endorsed the updated TPSG charter and noted the following updates:

• Better Targeted Superannuation Concessions
• Payday Super
• ATO use of hyperlinks in unsolicited SMS
• enhanced prefill solution for welfare payments
• Tax Practitioner Lodgment Program
• OECD Pillar Two Model Rules.

Attendees

Attendees list

Organisation	Member
ATO	Andrew Watson (Co-chair), Individuals and Intermediaries
ATO	Elissa Walker, Enterprise Solutions and Technology
ATO	Grant Brodie, Client Account Services
ATO	Karen Foat, Lodge and Pay
ATO	Kath Anderson, Fraud and Criminal Behaviours
ATO	Will Day, Small business
Australian Bookkeepers Association	Peter Thorp
Chartered Accountants Australia and New Zealand	Michael Croker
CPA Australia	Bill Leung
Institute of Certified Bookkeepers	Matthew Addison
Institute of Public Accountants	Tony Greco
National Tax and Accountants Association	Rodney Wilson
Tax Practitioner	Ani Tuna
Tax Practitioner	Brian Greenacre
Tax Practitioner	Dean Forte
Tax Practitioner	Julian Shimmin
Tax Practitioner	Keith Clissold
Tax Practitioner	Ken Thomas
Tax Practitioner	Phil McCann
Tax Practitioner	Steven Inglis
Tax Practitioner	Ursula Lepporoli
Tax Practitioners Board	Debra Anderson
The Tax Institute	Robyn Jacobson (Co-chair)

Guests

Guest list

Organisation	Attendee
ATO	Adam O’Grady, Lodge and Pay
ATO	Anthony Marvello, Small Business
ATO	Bec Smith, Client Account Services
ATO	Hayley Busuttil, Individuals and Intermediaries
ATO	Hoa Wood, Private Wealth
ATO	Kylie Smith, Individuals and Intermediaries
ATO	Melanie Casey, Individuals and Intermediaries
ATO	Michael Buscema, Lodge and Pay
ATO	Michelle Allen, Superannuation and Employer Obligations
ATO	Rob Heferen, Commissioner of Taxation
ATO	Sarah Forza, Private Wealth
ATO	Sarah Taylor, Private Wealth
ATO	Shuchi Sethi, Private Wealth
ATO	Tina Ford-Doe, Individuals and Intermediaries
ATO	Ziva White, Individuals and Intermediaries
Tax Practitioners Board	Janette Luu

 

Apologies

Apologies list

Organisation	Member
ATO	Emma Rosenzweig, Superannuation Employer Obligations
ATO	Michael Rowell, Enterprise Solutions and Technology
ATO	Vivek Chaudhary, Lodge and Pay