The Modernisation of Tax Administration Systems (MTAS) is a multi-phased ATO wide strategy aimed at improving the integrity of the tax system by working with Trustees, Tax Practitioners, and Digital Service Providers (DSPs) to improve the quality, accuracy and transparency of trust and beneficiary data.
Phase 2 will deliver enhancements to trust and beneficiary reporting over the next 2 years.
This MTAS Phase 2 working group meeting was held 21 January 2026 at 12:00 pm AEDT.
Key outcomes
Below is a summary of key outcomes. Note: the full outcomes and any presentation materials are available in the Online Services for DSPs.
Project update
ATO confirmed system design work will continue in parallel with legislative development to support Tax Time 2027.
Form changes
Proposed law reform will introduce mandatory beneficiary TFN reporting for closely held trusts from 1 July 2026, embedded within trust return lodgment. New labels are proposed, including a closely held trust indicator and a No TFN Provided option in the Statement of Distribution.
Group discussion and feedback
Proposed TFN changes and new labels were broadly supported, with no material concerns raised. A single generic non‑individual pre‑fill API via the ATO API Gateway will be progressed, initially limited to trust distribution income.
Advisory, non‑blocking nudge messaging also discussed, without any commitment to proceed. Members expressed a strong preference to continue using SRP for TT2027, with BBRP considered a contingency only.
Next steps
The next meeting is expected to be held in late February or early March, focusing on user experience and validation approaches for trusts with more than 200 beneficiaries.
For any questions about the MTAS Phase 2 working group, raise a ticket via the DSP service desk in Online services for DSPs.
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