This Strategic Working Group (SWG) meeting was held in Sydney on 14 March 2024.
Key outcomes
Summary
Below is a summary of key outcomes. Note: The full key outcomes and presentation materials are available in Online services for DSPs.
EST Program of Work
Members were provided with an update on Tax Time Program of Work measures in the context of EST’s work program and provided with the opportunity to discuss impacts.
Items of interest included:
- Changes to ATO General Interest Charges and Shortfall Interest Charges – Charges will no longer be tax deductable from 1 July 2025 (Tax Time 2026)
- Elements of the Multinational Tax Integrity package related to registration and reporting of subsidiaries, and denying deductions for intangibles in low or no tax jurisdictions.
Payday Super
ATO and Treasury have consulted with a broad range of stakeholders including DSPs and Clearing Houses. Consultation is now on hold and will continue after the budget is released.
Guidance cannot be developed until legislation is passed. However, there is work that can commence pre-budget including a review of existing services for data quality and flow needed to support Payday Super.
Improve Small Business Tax Performance (ISBTP)
Members were provided with an overview of the program and insight into the future roadmap, including outcomes of initiatives run throughout 2023. Pilots aiming to shift reporting from quarterly to monthly were well received by participants and will remain a focus for 2024.
Members highlighted that DSPs are interested in big items on 2025 - 2030 forward plan to support their own work programs, noting competing priorities and the importance of presenting a value case for proposed change.
GST Digital Strategy
Members were provided with an overview of the GST Digital Strategy and GST administration and were asked to consider how the ATO and DSPs can work together to strengthen the GST system.
Promoting growth in the use of software will improve the efficiency and effectiveness of GST collection (half of all activity statements are currently lodged in software). However, opportunities need to be identified within the current legislative framework as large-scale GST law and policy reform is not on the current government’s agenda.
ATO’s Strategic Approach to Artificial Intelligence (AI)
Members were provided with an overview of the ATO’s Automation & Artificial Intelligence (A&AI) Strategy, how A&AI is currently being used in the ATO and plans for building capability in future.
The A&AI Strategy (the Strategy) sets the ATO’s vision to utilise A&AI in an ethical, impactful, and sustainable way, and is shaped by a range of internal and external influences including Australia’s Artificial Intelligence (AI) Ethics Framework.
Members highlighted that the presentation reinforced the models that are being developed by DSPs, noting alignment between strategies, frameworks and principles.
eInvoicing update
Members were provided with an update on eInvoicing and an overview of Australian Payments Plus (AP+), including the role AP+ is playing in progressing conversations around payment through software.
Australian Payment Plus (AP+) combines Australia’s domestic payments companies, BPAY group, eftpos and New Payment Platforms Australia (NPP).
The ATO has been working with government to improve the take up of eInvoicing. A key driver will be the decommissioning of Bulk Electronic Clearing Scheme (BECS) which is the current infrastructure that business and government use for functions like payroll and superannuation. Decommission is planned for 2030 and NPP will be available as a modern alternative.
OECD global and domestic minimum tax
The Australian Government announced implementation of Pillar Two Global Anti-Base Erosion (GloBE) rules and Domestic Minimum Tax (DMT) in the May 2023 Federal Budget, with early changes to apply to years starting on or after 1 January 2024.
The GloBE rules are designed to ensure large multinational enterprises (MNEs) pay a minimum level of tax on income arising in each jurisdiction where they operate.
Given estimated revenue projections and number of impacted MNE groups in Australia are relatively low, it is expected that lodgment of returns will be on an XML Schema, lodged via Bulk Data Exchange (BDE).
The ATO will continue to consult with DSPs and in-scope MNEs to validate the Pillar 2 design for implementation.
Next meeting dates
The next virtual SWG meeting will be held on 20 May 2024.
The next face-to-face SWG meeting will be held in June 2024.
Participation will be available to Digital service providers selected from the 2024 membership refresh process.
Participation is available to those Digital service providers listed as SWG members for the 2024 year.
If you have any questions, contact the secretariat by email at DPO@ato.gov.au or lodge a ticket via Online services for DSPs.
No previous versions available.