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 is scheduled to be held 23 February 2026 at 2:00 pm AEDT. The key outcomes will be added to this page when they become available.
Key outcomes
Below is a summary of the key meeting outcomes. Note: the full outcomes are available in the DSP Hub.
Project update
Tax Time 2026
Internal system testing has commenced and will continue for the next few months. Key label and validation changes that impact DSP software are confirmed and will proceed regardless of broader system decisions. There have been no significant risks identified for DSP software readiness.
Tax Time 2027
The program is fully underway with several key decisions shaping user experience and interactive validations. Active consultation is occurring with stewardship groups, with a focus on helping users understand and prepare for upcoming changes.
Reporting and user experience for trusts with more than 200 beneficiaries
A presentation covering the current and future state of the user experience for trusts with more than 200 beneficiaries was shared with the group.
Current State (pre 1 July 2027): System limitations prevent trusts with over 200 beneficiaries from lodging statements of distribution in software.
Future State (from 1 July 2027): All trusts, regardless of size, will be able and will be expected to lodge complete statements of distribution via software.
Key insights and challenges realised throughout the removal of limitations for Partnership tax return SoD’s in Tax Time 2025 were shared with the group.
Interactive validation approaches
The ATO outlined the proposed interactive validations for Tax Time 2027, which will provide the ability to cross check data in the tax return at the time of lodgment against ATO held data.
- Warning Validations (highlights the error for correction however the return can still be lodged)
- Fatal Validation (must be resolved before lodgment will be accepted)
- In form Checks (front end prompts)
Next steps
The group will reconvene around August 2026, unless urgent matters arise sooner.
For any questions about the MTAS Phase 2 working group, raise a ticket via the DSP service desk in Online services for DSPs.
No previous versions available.