This Strategic Working Group (SWG) meeting was held in Melbourne on 3 June 2026.
Key messages
Welcome, introductions and acknowledgement of Country
The group noted acceptance of previous meeting minutes and reviewed current action items.
Actions relating to automation in software and Operational Security Framework (OSF) uplift remain in progress, with further activity planned following tax time.
Payday Super testing-related actions have been completed.
ATO and DSPANZ insights on local and global developments
The ATO and DSPANZ Co-chairs provided a high-level overview of key global and domestic developments impacting tax administration and the digital ecosystem.
Increasing global pressures are driving tax administrations to accelerate digital transformation, including adoption of e-invoicing mandates and greater use of data to address the tax gap.
Advancements in artificial intelligence (AI), including the emergence of agentic AI, are influencing the development of software and tools and reshaping the future of the tax profession and digital service delivery.
Members noted the expansion of data sources, including sharing economy reporting, which is contributing to broader data integration and pre-fill capability.
Budget announcements 2026–27
The 2026–27 Budget includes 29 measures impacting the ATO, requiring legislative, system and administrative changes. Further detail on how these measures will be administered is being determined, particularly where law change is required.
Members advised impacts for DSPs will vary depending on services provided. Initial measures are expected to primarily affect PLS developers, with some implications for payroll functionality. Early clarity on design, specifications and implementation timeframes is critical.
Impact of broader measures supporting business simplification, expansion of data sharing frameworks and continued investment in digital identity/counter-fraud will largely depend on administrative detail.
Regulatory Reform Update – Dynamic PAYGI
As part of the 2026–27 Federal Budget, the government announced the ATO will enhance the ability of business taxpayers to vary pay as you go instalment payments. This builds on work the ATO has been conducting to modernise PAYG instalments for business, including consultation with DSPs on potential to embed PAYGI variations into software.
From July 2026, DSPs that have supported early consultation will be involved in an expanded dynamic PAYGI pilot.
Administrative safe harbour arrangements are being considered to support adoption and provide certainty.
Members highlighted the importance of:
- early access to specifications and design details
- clear visibility of opt-in and participation mechanisms
- sufficient lead time for implementation.
Complexity across different taxpayer cohorts, including companies, sole traders, trusts and partnerships, was noted as a key challenge.
Unpacking automation and AI in software: out-of-session workshop recap
On 2 June 2026, a Tax Practitioners Board (TPB) workshop was held with members to explore automation and AI in software in the context of the Tax Agent Services Act (TASA).
Members noted that while automation is not new, increasing sophistication and reliance on AI introduces new regulatory considerations.
Key themes included:
- the definition and scope of tax agent services in a digital context
- the role of nudges, disclaimers and human oversight
- distinguishing between calculation functionality and advisory services.
Members supported further consultation with a broader set of stakeholders and development of updated TPB guidance.
Future of payments – Supporting ATO’s Payments Ecosystems Think Tank
Members were asked to share on key considerations for the ATO’s upcoming Payments Ecosystem Think Tank from an industry perspective.
DSPANZ provided pre-reading on outcomes of industry discussions under a Payments Working Group run in partnership with Australian Payments Plus.
Transition considerations from BECS to the New Payments Platform (NPP) are a key focus, particularly for bulk and high-value transactions. In general, as part of design, ATO should strategically implement a range of available overlay services, methods and tools to align with broader industry, support real world taxpayer workflows and provide certainty around destination of payments.
Members highlighted the importance of:
- enabling bulk and batch payment capabilities
- aligning with ISO standards
- improving validation and error handling mechanisms.
The need to align payments modernisation with broader “tax just happens” initiatives was also noted.
The Think Tank is being planned for August/September. Outcomes will be shared with the group.
Proposed regulatory framework for intermediaries
New Zealand Inland Revenue (NZIR) presented its proposed regulatory framework for intermediaries.
The proposal includes recognising DSPs as a distinct category in legislation which enables NZIR to treat DSPs equally, for example allowing permitted disclosure which is limited under current legislation.
The approach aims to provide greater flexibility for digital service delivery while maintaining system integrity.
Members discussed implications for defining DSPs and ensuring consistent expectations across intermediaries.
Consultation is ongoing, with submissions informing future recommendations.
Future of the ATO app
The ATO presented its future vision for the ATO app as a primary digital interaction channel for individuals.
Opportunities were identified to enhance onboarding, enable real-time interactions and integrate with DSP services where a taxpayer needs to undertake ATO specific action.
Members highlighted potential enhancements including:
- integration between DSP workflows and App functions
- push notifications and user-triggered actions
- strengthened authentication and identity management.
Accessibility, adoption and multi-language capability were also discussed.
Smarter Data Program overview and direction
The ATO continues to expand its use of data, analytics and machine learning to support risk identification and service delivery, including considering natural touch points for data sharing across government.
Members noted the importance of maintaining trust, transparency and appropriate governance in the use of data and AI.
The ATO confirmed that human decision-making remains central, with clear boundaries between AI-assisted processes and decision authority.
Security, policy and compliance – update
The ATO provided an update on OSF and broader security, policy and compliance considerations.
Proposed areas of focus include secure coding practices, separation of environments and alignment with existing industry standards such as ISO.
Members raised concerns regarding duplication, cost and enforceability of additional standards.
There was support for a principles-based approach and leveraging existing certifications where appropriate.
Other business
The next meeting is scheduled for 13 October 2026.
The ATO confirmed that its broader digital and organisational strategy will be published publicly.
Members noted that work will continue across key areas including AI guidance, regulatory reform, payments modernisation and OSF uplift.
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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