In his address to the Institute of Professional Accountants National Congress on Thursday (18 November), Chris Jordan said data and technology are the keys to success and driven by the Australian Taxation Office’s enduring commitment to transformation.
“Over the past two years, Australians have faced unprecedented challenges brought about by the bushfire crisis and COVID-19 pandemic. In particular, tax professionals and their small business clients have had to adapt and innovate to survive. Times are changing and the ATO must change with them,” he said.
“We have taken huge strides towards a future where interactions with us are integrated, seamless and accessible. We must continue to harness advances in technology to ensure we provide contemporary digital services that support a modern, digital economy.
“Our experience with the stimulus measures showed us just how important our commitment to digital transformation is and how having access to the right data enables us to be agile in our delivery of large-scale programs. We were able to quickly and effectively deliver these measures because of the digital platforms we already had in place.”
Mr Jordan said the rapid growth in digital engagement has reinforced the importance of adopting a whole-of-system approach to preventing cyber crimes and identity fraud and said the ATO may need to add additional layers of security to the programs and systems it administers to ensure it fulfils its obligation to protect clients, tax professionals and the broader tax system.
“We may sometimes require a little more information from you to access the records of your clients. With the large amounts of sensitive information both the ATO and the profession hold, and the growing threat of cybercrimes, we must all be prepared to take those extra steps to protect our clients and uphold the integrity of the system,” he said.
He said that from 2018, the ATO developed two aspirations to be in place by 2024 – for the ATO to become more streamlined, integrated and data-driven, and to build trust and confidence.
As part of that process the ATO focussed on optimising its self-service offerings for taxpayers and their advisers including addressing pain points, streamlining processes, and providing tax professionals and their clients with greater visibility of client data.
“The Federal Government recognised the importance of Australia’s digital transformation with the Digital Economy Strategy announced in this year’s Budget,” he said.
“This outlined significant investments to grow Australia into a leading digital economy, including enhancements to digital services like myGov, as well as a commitment to driving initiatives such as e-invoicing. The ATO is taking a lead role in delivering better whole-of-government services for the community.”
This year, the ATO pre-filled over 89 million pieces of data. At tax time this year nearly 370,000 taxpayers were prompted to review their work-related expense deductions based on comparisons to individuals with similar jobs and expenditure, resulting in significant revenue impact. This is now going to be expanded to sole traders and other small businesses in future.
Mr Jordan stated from 1 January, STP 2 will support the administration of the social security system and reduce the reporting burden for employers that need to report information to multiple government agencies.
“Digital Service Providers are at varying stages of readiness and we know this commences at a time when employers are already under pressure, so we are taking a flexible and reasonable approach with the transition,” he said.
The Registrar of the Australian Business Registry Service (or ABRS), will now bring more than 30 government business registers that Mr Jordan said will make it easier for businesses to meet their registration obligations.
The launch of the director ID was the first service offered under ABRS and Mr Jordan said it is aimed at combating illegal phoenix activity and create a fairer environment for honest businesses.
He said after feedback from the industry on lodgement deferrals process the ATO has put in place a limited phone deferral service for up to five clients.
“We have additional improvements planned that will make deferrals through Online services for agents quicker and more transparent – providing greater visibility of the process and reducing errors and delays,” he said.
“We have commenced our review of the lodgement program to assess whether it remains fit for purpose and achieves the right outcome for clients, the profession and the tax system. Updates on this work will be provided through our various communication channels.”
The ATO is also currently in the process of overhauling its client register to help ensure communications go to the right place, addressing a major pain point in the self-service system.
“It’s important to us that our client register provides clarity around how to best contact the right person in relation to a taxpayer’s affairs, and we’re conscious of your role as trusted advisors to your clients,” he said.
“There are also some processes that are currently still manual, and we know that this is an irritant for you. We are consulting with our partners and working hard to move more of these processes online to improve the ease and speed of these interactions.”
