This Strategic Working Group (SWG) meeting was held in Brisbane on 6 June 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.
Artificial Intelligence AI
Members were provided an overview of actions taken internally to review the use of AI in software and how it aligns with the Tax Agent Services Act 2009 (TASA).
Stakeholders are interested in understanding how AI can support clients through software – particularly tax agents (noting the need to balance useful functionality with TASA compliance).
The TPB’s main objective is to provide consumer protection with relation to tax professional services.
- TPB guidance is available for DSPs who provide tax related software and includes what they may need to consider regarding registration requirements and the TASA regulatory framework.
Members indicated that they would like clearer guidance on the definition of a tax agent service.
Industry Feedback on Activity Statement decision
Members participated in a discussion on recent events relating to the Activity Statement (AS) 2023 service. Based on industry feedback, the ATO has committed to work with industry to consider options for implementing an enhanced activity statement service balancing timeliness with longevity.
The group discussed the importance of engaging with DSPs to understand industry impacts and how timely formal communication is critical to support clear, consistent dissemination of ATO messaging.
ATO will work with DSPs to confirm a way forward for the AS service in the context of the broader delivery roadmap and potential future services.
EST Program of Work ITAPS and SEO led initiatives
Members were given a general overview of ITAPS and SEO items on the EST Program of Work and provided with the opportunity to discuss impacts. Conversation focussed on items with an expected impact to DSPs, including:
- Better Targeted Super Concessions legislative start date is 1 July 2026, with a requirement to deploy a total superannuation balance change by 1 July 2025
- Rollover and Legislative Cyclical Changes for Income Tax Product
- Foreign Investment Fees – Raising fees for established dwellings
- Multinationals Tax Integrity - Amending Australia’s interest (thin capitalisation) rules
- Lowering the indexation of HELP debts – applying retrospective credits to offset the high indexation rate in 2023
- Allow small business taxpayers to make self-amendments for up to 4 years
- Exempting lump sum payments in arrears from the Medicare Levy
Several other ITAPS measures were discussed at a high level, with impacts ranging from the need for awareness to rate/threshold changes.
Improve Small Business Tax Performance
Members were given an overview of insights from the recent OECD Forum on Tax Administration (FTA) conference in Paris.
The OECD FTA conference was presented with survey information from the SME business sector. Challenges faced by small businesses in Australia reflect challenges faced by SMEs abroad.
Recent focus for ISBTP has been on external engagements with tax practitioners, small business and the digital community. Insights from these engagements are shaping the work program in 2024/25.
ATO’s Cyber Governance and working together on Cyber Security opportunities
Members were given an overview of Cyber in the ATO and participated in a group activity exploring opportunities for DSPs and ATO to work together to strengthen the environment.
ATO is not a lead agency in the cyber security ecosystem. However, ATO’s Cyber Security Group (CSG) drives awareness that it requires a collective effort to make up a healthy, safe cyber environment.
Members provided insights including challenges faced by multinational entities due to limitations in their cyber security partnership program and information sharing and users removing controls and safeguards.
Preparing for Tax Time 2024
Members were given an update on preparations and activities in progress to support Tax Time readiness.
Transaction figures for 2023 showed significant growth from the previous year. ATO is working on capacity planning to accommodate the 10% growth predicted for 2024.
Actions taken to improve ATO’s position for peak periods, and the wholesale environment in general, include advanced alert and monitoring processes, strengthened security frameworks, installation of infrastructure tools, new Mainframe and improved support services.
ATO has requested DSPs refrain from using EVTE to conduct performance testing – EVTE is to be used for testing of conformance data only.
eInvoicing
Members were given a post-Budget update on the direction of eInvoicing. eInvoicing was included in the 2024–2025 federal budget with an allocation of $23.3m over 4 years, providing confidence and certainty in the Government’s intention to proceed with the measure.
Allocated funding will support targeted activities to increase readiness and adoption across the network.
Treasury will continue to explore opportunities to increase economy-wide adoption of the technology, including potential policy changes to help embed eInvoicing as a default channel for sending and receiving invoices in government.
Developing eInvoicing branding will also be a priority with a key focus on building awareness of the difference between eInvoicing and email and mitigating misconceptions that the ATO accesses eInvoice data for tax compliance.
Next meeting dates
The next virtual SWG meeting will be held on 10 September 2024.
The next face-to-face SWG meeting will be held in Canberra 23 October2024.
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 raise a ticket in the DSP service desk.
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