2023 Completed matters

[202330] Better Targeted Superannuation Concessions[202329] Capital raised for the purpose of funding franked distributions[202328] Mapping the veteran experience[202327] National Tax Clinic open competitive grant program[202326] Tax deductions – trustee risk reserves[202325] Transition of SBR1 payment summary services[202324] Partnership tax returns and distribution statements[202323] Division 7A guidance within software[202322] Sharing Economy Reporting Regime Phase 2[202320] Modernisation of Trust Administration Systems[202318] Online services for agents communication preferences[202317] Super Health Check Phase 2 – taking greater control of your superannuation[202316] Increasing the payment frequency of superannuation guarantee[202314] Right time tax payments and reporting[202313] Preventing errors and mistakes through small business software[202312] Capital management advice and guidance[202311] Effective life determinations process[202310] Information repository for digital service providers[202309] Tax treatment of crypto assets[202308] Tax consequences on sales of small scale land subdivisions[202307] Implementation of a global minimum tax and domestic minimum tax[202305] Client agent linking[202304] Legacy payment system – cheques[202303] Tax deductions – fees paid for financial advice[202302] 2023 Digital Services Gateway APIs[202301] User research – outstanding lodgment and/or payment obligations advice to agents[202330] Better Targeted Superannuation ConcessionsConsultation purposeTo seek feedback on public advice and guidance priorities for the Better Targeted Superannuation Concessions measure.DescriptionOn 28 February 2023, the Australian Government announced it would reduce the superannuation tax concessions available to individuals whose total superannuation balance exceeds $3 million.The changes will apply from 1 July 2025 onwards. This means individuals with a total super balance over $3 million at the end of the 2025–26 financial year will be subject to a tax of 15% on earnings attributed to the balance that exceeds $3 million (Division 296 Tax).The Treasury Laws Amendment (Better Targeted Superannuation Concessions and Other Measures) Bill 2023 and the Superannuation (Better Targeted Superannuation Concessions) Imposition Bill 2023 were introduced to Parliament on 30 November 2023.The ATO is seeking feedback on whether there are priority issues where public advice and guidance is needed to help superannuation industry stakeholders understand how the new law applies to their circumstances.Who we consultedSuperannuation industry bodiesProfessional associationsSuperannuation funds, including defined benefit fundsOutcome of consultationFeedback was invaluable in helping the ATO shape how we approach our public advice and guidance for this measure, both formal and informal. Feedback considered:key issues and scenarios to address across the range of public advice and guidancetiming considerationsdifferent audiences.In relation to formal public advice and guidance products, the following priorities were identified:total superannuation balancecalculation of the Division 296 Taxexcluded interests.The Advice under development program will be updated in due course as public advice and guidance plans are finalised.Consultation leadKerry Lake, Superannuation and Employer Obligationskerry.lake@ato.gov.au Phone 07 3213 3611[202329] Capital raised for the purpose of funding franked distributionsConsultation purposeTo seek feedback on public advice and guidance needs for the new integrity measure addressing franked distributions funded by capital raisings.DescriptionA new integrity measure that prevents certain distributions funded by capital raising from being frankable was recently enacted through amendments contained in the Treasury Laws Amendment (2023 Measures No. 1) Act 2023.The ATO is seeking feedback on whether there are priority issues where public advice and guidance is needed to help entities understand how the new law addressing franked distributions funded by capital raising applies to their circumstances.Who we consultedCorporate tax entities and their membersTax professional associationsTax practitionersOutcome of consultationThe feedback received provided perspective on the key issues that stakeholders view as a priority for guidance in relation to the new integrity measure. We will use the insights received in determining the appropriate public advice and guidance.Post consultation updateThe insights provided during the consultation have been considered and incorporated in the development of a Practical Compliance Guideline (PCG). Refer to the Advice under development program for further information on the PCG.Consultation leadVirginia Gogan, Public GroupsVirginia.Gogan@ato.gov.au Phone 03 8632 4643[202328] Mapping the veteran experienceConsultation purposeTo understand the experience of veterans in receipt of military invalidity superannuation as they interact with the ATO.DescriptionThe work to understand the veteran experience takes place in a context defined by 2 significant events, the Federal Court decision in Commissioner of Taxation v Douglas [2020] FCAFC 220 (the Douglas decision) and the ongoing Royal Commission into Defence and Veteran Suicide.The Douglas decision impacted the tax treatment of invalidity pensions paid to military veterans by the Commonwealth Superannuation Corporation under the Military Superannuation and Benefits Scheme and Defence Force Retirement and Death Benefits Scheme.The case determined the income should be treated as a series of superannuation lump sum payments instead of a superannuation income stream. The treatment as a superannuation lump sum payment usually has a greater tax concession, however not for all. The government legislated a tax offset (Veteran Superannuation Tax offset) to ensure veterans were not worse off with this change.Who we consultedTax professionalsVeteran advocacy groupsVeteransRelevant government departments includingDepartment of Veterans AffairsServices AustraliaCommonwealth Superannuation Corporation.Outcome of consultationFeedback provided valuable insights into the experience of veterans dealing with the ATO and highlighted potential areas for improvement. These findings will guide future work to better shape the interactions of veterans with the ATO and contribute to our ongoing understanding how the ATO supports Australians experiencing vulnerability.Consultation leadRobert Thomson, Individuals and Intermediariesrobert.thomson2@ato.gov.au Phone 02 9354 3207[202327] National Tax Clinic open competitive grant programConsultation purposeTo seek feedback to inform the development of the National Tax Clinic grant opportunity guidelines.DescriptionThe National Tax Clinic program is a government-funded initiative that serves a dual purpose:offering tax support to unrepresented taxpayers who may not have access to tax advice and assistance due to economic, social, or personal factorsproviding practical experience for students undertaking studies in tax related courses under the supervision of a qualified tax professional at participating universities and TAFE institutions.The program is supported by the ATO (as grants administrator), noting that tax clinics function independently from the ATO. Tax clinics are currently operated by 15 universities throughout Australia.In the 2023–24 Federal Budget, the Australian Government announced funding for 5 new tax clinics from 1 January 2025, with at least 2 clinics to be delivered by TAFEs. The expansion of the program to TAFEs, which have a strong presence in regional areas, will assist small businesses who do not currently have easy access to professional tax assistance.The ATO will conduct an open competitive grant process and is seeking stakeholder feedback to inform the development of the grant opportunity guidelines.Who we consultedAcademics – existing and potential tax clinic supervisorsStudents – undertaking study in tax related coursesTax professionalsRecipients of advice through the National Tax Clinic programCommunity support organisationsOutcome of consultationFeedback has been used to develop the National Tax Clinic Expansion Open Competitive Opportunity Guidelines.Post consultation updateFeedback has been incorporated to support planning for the program evaluation (2027 Comprehensive Review).Consultation leadMaryam Awan, Objections and Reviewmaryam.awan@ato.gov.au Phone 03 9247 0510[202326] Tax deductions – trustee risk reservesConsultation purposeTo seek feedback on the proposed draft taxation determination from industry representatives prior to the publication of the draft for public consultation.DescriptionThe ATO is developing a taxation determination on the deductibility of expenses incurred by superannuation funds in establishing and maintaining a trustee risk reserve.Section 56 of the Superannuation Industry (Supervision) Act 1993 was amended effective from 1 January 2022, such that any provision in the governing rules of a superannuation entity (fund) is void in so far as it would have the effect of exempting a trustee of the entity from or indemnifying a trustee of the entity in respect of, certain penalties.Impacted funds and their trustees have taken different approaches to address the risk of exposure to penalties arising from the amendments, including making payments to establish or build a trustee risk reserve.The taxation determination will set out the Commissioner of Taxation’s views on the deductibility of these payments under section 8-1 of the Income Tax Assessment Act 1997.Who we consultedSuperannuation industry bodyProfessional associationsOutcome of consultationTargeted consultation resulted in updated wording within the draft taxation determination (TD) to clarify that the TD addresses the payments made by the fund trustee, in its capacity as trustee, to the trustee in its own capacity.Post consultation updateAfter considering public comments on the draft TD published in December, on 24 July 2024 we published our confirmed view on the general deductibility of payments made by a super fund to its trustee. See Taxation Determination TD 2024/6 Income tax: trustee risk reserves – deductibility of payments made by a superannuation fund to its trustee.There are no substantial changes to the Commissioner’s view expressed in the draft Determination.Consultation leadErnest Lui, Public Groupsernest.lui@ato.gov.au Phone 02 9374 2901[202325] Transition of SBR1 payment summary servicesConsultation purposeTo explore the options available to digital service providers to replace the Standard Business Reporting Platform 1 (SBR1) payment summary service.DescriptionAs part of the ATO rationalising its platform investment, the SBR1 channel will be decommissioned. A limited number of digital service providers are still using the payment summary service on SBR1. Digital service providers using the SBR1 payment summary service will need to transition to a new or current lodgment channel.Who we consultedDigital service providersDepartment of Employment and Workplace RelationsOutcome of consultationFeedback received from the consultation will inform and guide the future decommissioning of the SBR1 payment summary service. It will also guide the development of alternative lodgment channels, ensuring a smooth transition for all stakeholders.Consultation leadKaren Spicer, Enterprise Solutions and Technologykaren.spicer@ato.gov.au Phone 02 4725 7288[202324] Partnership tax returns and distribution statementsConsultation purposeTo seek feedback on the partnership tax return product and understand the potential impacts of changes to the partnership tax return lodgment process.DescriptionThe ATO is consulting to gain a better understanding of the current user experience for the partnership tax return including distribution statements, user behaviours, and how the product could be improved.Who we consultedTax professionalsPartnershipsDigital service providersOutcome of consultationFeedback provided valuable understanding of how partnerships and their agents interact with the partnership tax return, and how digital service providers build this service in software. These insights will be considered in the scoping and design of potential enhancements to the service.Consultation leadAngela Hucker, Private Wealthangela.hucker@ato.gov.au Phone 03 9275 9557[202323] Division 7A guidance within softwareConsultation purposeTo seek insights from digital service providers to inform the design of Division 7A guidance within software products.DescriptionSmall business can use software to manage their business operations and tax and superannuation obligations.Division 7A is contained in the Income Tax Assessment Act 1936 and is a complex area of the tax law. Statistically, Division 7A represents a significant part of the tax gap and is an out of tolerance risk.The ATO has observed a general lack of awareness and understanding of Division 7A by small businesses and their registered tax agents which contributes to this risk.Digital service providers build software that supports business in maintaining daily operations while meeting tax and superannuation obligations.Guidance prompts and nudges could be embedded within software products at different touchpoints during a typical Division 7A lifecycle. These prompts would seek to raise awareness of potential Division 7A risks and issues as they arise. Guidance would help small businesses and their registered tax agents take corrective action.Consultation with digital service providers will ensure Division 7A guidance within software products is viable and adds value for clients whilst also achieving ATO objectives.Who we consultedDigital service providersFinancial technology providersTax professionalsOutcome of consultationConsultation provided insights into potential challenges in embedding guidance in software for complex legislation and policy. These insights also enabled us to consider how Division 7A actions can be looked at from the perspective of responding to market developments and the integration of our existing Division 7A strategies into current market offerings.This information will assist us to understand next steps not just for Division 7A but other topics and how they might be embedded into software in a future digitalised tax experience.Consultation leadMichael Morton, Small BusinessMichael.Morton@ato.gov.au Phone 02 9374 2043[202322] Sharing Economy Reporting Regime Phase 2Consultation purposeTo seek feedback regarding implementation of the next phase (Tranche 2) of the Sharing Economy Reporting Regime including:public advice and guidancereporting requirements (data and lodgment).DescriptionSchedule 2 of the Treasury Laws Amendment (2022 Measures No. 2) Act 2022External Link requires operators of electronic distribution platforms (EDPs) to report information to the ATO on transactions relating to supplies made through the platform. This measure implements a recommendation of the report of the Black Economy Taskforce.Under the measure, EDP operators are required to report transactions that occur on or after:1 July 2023 if it relates to a supply of taxi services (including ride-sourcing) or short-term accommodation1 July 2024 for all other reportable transactions.The first phase (Tranche 1) of consultation, [202230] Sharing Economy Reporting Regime, considered EDP reporting transactions related to a supply of taxi service (including ride-sourcing) or short term accommodation.Consultation for Tranche 2 will include all other reportable transactions for all other industries.Who we consultedEDPs operating across all other affected industriesPeak body representativesTax and other professional associationsOutcome of consultationFeedback provided valuable insights which will inform the development of the Implementation Guide, XML Schema, Legislative Instruments and Explanatory Statements to support industries in the implementation of the next phase of the Sharing Economy Reporting Regime (tranche 2).Consultation leadVanessa Kelly, Small Business Experiencevanessa.kelly2@ato.gov.au Phone 02 4223 2851[202320] Modernisation of Trust Administration SystemsConsultation purposeTo obtain feedback on the trust and beneficiary income tax return changes scheduled to be introduced for Tax Time 2024 and affirm tax agent support.DescriptionThe Modernisation of Trust Administration Systems (MTAS) project is an ATO wide strategy to improve the quality, accuracy and integrity of annual income tax return information reported by trustees and beneficiaries. The project will deliver improvements to the:lodgment experience for trustees and beneficiaries and provide greater support to meet their reporting obligationsadministration and processing of trust reporting obligationsATO’s data driven decision-making process including those which inform compliance and assurance activities.Who we consultedTax agentsOutcome of consultationFeedback from the consultation sessions, where appropriate, has been incorporated into:specific design areas for the planned Tax Time 2024 changesprocess of implementation for those changes.Consultation leadNicholas Bell, Private Wealthnicholas.bell@ato.gov.au Phone 08 8208 1165[202318] Online services for agents communication preferencesConsultation purposeTo request feedback and intelligence from tax professionals on their current use of the client communication preference function within Online services for agents.DescriptionWe are consulting to gain a better understanding of:How communication preferences are currently used, or why users choose not to.What users like/do not like about communication preferences.How can we improve the service for users.Who we consultedEmployer representativesTax agentsBAS agentsOutcome of consultationFeedback received indicated that tax and BAS agents:want to increase the receipt of digital communications for their clients but are finding challenges in implementing in the ATO’s current channels and digital service offersthat setting up client communication preferences via Online services for agents can be confusingwould like the ATO to improve the functions of digital communications services and their associated training materials and increase awareness of these services.Feedback will be considered for future enhancement of these services.Consultation leadHenry Baxter, Strategy and Supporthenry.baxter@ato.gov.au Phone 08 8208 3167[202317] Super Health Check Phase 2 – taking greater control of your superannuationConsultation purposeTo explore and gather insights into the challenges individuals face within the superannuation system.To then develop suitable products to assist individuals have greater control of their superannuation, according to their life stage and circumstances.DescriptionThe needs and attitudes of individuals changes throughout their life. In addition, the system is complex and difficult to navigate. The ATO is keen to better understand individual requirements in relation to their super.Who we consultedCommunityProfessional AssociationsIndustry repsIndividuals Stewardship GroupSuperannuation Industry Stewardship GroupTax Practitioner Stewardship GroupOther government groups, forums, and agencies.Outcome of consultationFeedback provided valuable insights and suggestions for potential improvements and opportunities to the way we support individuals with their superannuation.Consultation leadJustin Heinemann, Superannuation and Employer Obligationsjustin.heinemann@ato.gov.au Phone 07 3213 3423[202316] Increasing the payment frequency of superannuation guaranteeConsultation purposeTo explore options for administering the government’s Securing Australians’ Superannuation Package.DescriptionIncreasing the payment frequency of superannuation guarantee (SG) is part of the Securing Australians’ Superannuation Package measure that was announced by the government in May 2023 in the 2023–24 Budget (PDF, 2.4MB)This link will download a file.Currently, employers are only required to pay their employees’ SG on a quarterly basis. From 1 July 2026, employers will be required to pay their employees’ SG entitlements on the same day that they pay salary and wages.Increasing the payment frequency of superannuation to align with the payment of salary and wages, will:ensure employees have greater visibility over whether their entitlements have been paidbetter enable the ATO to recover unpaid superannuation.Treasury issued the Securing Australians’ superannuationExternal Link paper in October 2023. Submissions closed on 3 November 2023.Who we consultedEmployer representativesBAS agents and tax agentsSuper fundsDigitals service providersPayroll providersClearing housesSuperannuation Administration GroupSuperannuation Industry Stewardship GroupBAS Agent Association GroupSmall Business Stewardship GroupTax Practitioner Stewardship GroupPrivate Groups Stewardship GroupOutcome of consultationInformation received throughout consultation informed the Government’s options for implementing Payday Super. On 18 September 2024, the Government announced the next steps in implementing Payday superannuation. As a result of the announcement, we have established the Payday Super Working Group to continue the consultation process on implementation of the announced policy.Key messages from the Payday Super Working Group will be shared on ato.gov.auConsultation leadCaryn Kaluzinski, Superannuation and Employer ObligationsPaydaySuper@ato.gov.au Phone 08 8208 1284[202314] Right time tax payments and reportingConsultation purposeTo understand the costs and benefits that ‘right time’ tax payments and reporting might have on small business.DescriptionUnderstanding the costs and benefits of ‘right time’ (reducing the time between taxable events, their reporting and any payment) tax payments and reporting is part of Improve small business tax performance and participation by collaborating with partners to build a digital first tax ecosystem, enabling seamless tax reporting from business source systems – one of the key focus areas in the ATO corporate plan 2023–24.The ATO is exploring the cost and benefits of ‘right time’ (more regular) GST or pay-as-you-go withholding (PAYGW) reporting and/or payments, through the following pilots:small businesses using a digital service to pay more frequent GST payments to the ATOsmall businesses changing their GST lodgment cycle from quarterly to monthlysmall businesses represented by a tax or BAS agent who report PAYGW monthly and GST quarterly trialling an earlier PAYGW due date for March 2024 and June 2024.Who we consultedSmall businesses that subscribe to digital services offering the option to remit more frequent payments of GSTSmall businesses within the retail industry who are currently on a quarterly GST lodgment cycleSmall businesses who are currently registered for quarterly GST reporting and monthly PAYGW reporting.Tax and BAS agentsDigital service providersFinancial technology providersTax professional associationsSmall Business Stewardship GroupBAS Agent Association GroupOutcome of consultationConsultation identified several opportunities to improve the small business experience and provided valuable insights into reporting and payment naturally aligning to business systems and processes.Insights are being used to influence the design and implementation of various marketing, communications and educational content focused on helping small business get it right from the start.Some of the opportunities identified have law implications and are being analysed as part of our advocacy work to determine which are suitable for escalating to Treasury for their consideration.Consultation leadMichael Morton, Small Businessmichael.morton@ato.gov.au Phone 02 9374 2043[202313] Preventing errors and mistakes through small business softwareConsultation purposeTo explore opportunities to prevent errors and mistakes through software that small businesses use.DescriptionSmall business can use software to manage their business operations and tax obligations.The ATO is currently exploring how messaging and prompts could be embedded into software to assist tax professionals and small businesses identify issues that may otherwise be overlooked or not properly understood and help them get their tax right prior to lodgment.This will include:identifying errors and mistakesco-designing messages and prompts to reduce common errors and mistakes.This is part of the Improve small business tax performance initiative. The ATO is collaborating with partners to build a digital first tax ecosystem, enabling seamless tax reporting from business source systems – one of the key focus areas in the ATO corporate plan 2023–24.Who we consultedTax professional associationsDigital service providersFinancial technology providersTax and BAS agentsOutcome of consultationFeedback has helped the ATO to identify and better understand:Digital Service Providers (DSPs) have a desire to innovate in areas that will provide guidance within software, but also need to consider and better understand how they do this outside of the Tax Agent Services Act 2009 definition of a 'tax agent service'.Commercial value is an element of consideration for DSPs when deciding to build and invest in new features in a discretionary environment.Small businesses have a real fear of making mistakes in their tax calculations and lodgments and being penalised for them.Digital solutions that make tax simpler can have positive impacts on mental health.Embedding guidance in software by other tax administrators across international jurisdictions.The insights captured will guide future programs and the development of our blueprint on digitalising a future digital tax experience for small business.Consultation leadMichael Morton, Small Businessmichael.morton@ato.gov.au Phone 02 9374 2043[202312] Capital management advice and guidanceConsultation purposeTo seek feedback on public advice and guidance needs for publicly listed and multinational businesses undertaking certain capital management activities.DescriptionCapital management is an important consideration for publicly listed and multinational businesses. The ATO receives a significant volume of applications for binding advice through the rulings system on the consequences of specific capital management transactions by publicly listed and multinational businesses who are considering potential capital management activities on similar fact patterns. Applications for rulings are typically on the tax consequences of:returns of share capitaldividends paid prior to a scheme of arrangement.We are reviewing whether our existing advice and guidance needs to be updated or if new advice or guidance needs to be developed. Appropriately designed public advice and guidance products will lead to higher levels of certainty and greater efficiencies for taxpayers, advisers and the ATO through both decreased demand for one-to-one rulings and more efficient ruling processes where they are still required.Who we consultedPublicly listed and multinational businesses undertaking capital management activitiesTax professional associationsTax practitionersOutcome of consultationFeedback has informed the ATO’s understanding of how public groups and multinational enterprises engage with the ruling system when they undertake certain capital management activities.These insights will be considered in scoping potential improvements to our public advice and guidance with respect to capital management transactions.Consultation leadScott Woods, Public GroupsPGIPAGUnit@ato.gov.au Phone 02 4923 1480[202311] Effective life determinations processConsultation purposeTo seek feedback on proposed updates to the effective life determinations process.DescriptionWe have previously published a new effective life determination for certain depreciating assets each year. The determination is also published annually in a new taxation ruling (effective life ruling) – see Taxation Ruling TR 2022/1 Income tax: effective life of depreciating assets (applicable from 1 July 2022).We are looking to improve the experience for both taxpayers and ATO staff, where the resources required align with the community need for effective life determinations.The updates to the process we are considering include:publishing the effective life ruling content on ato.gov.au, with links to the latest Legislative Instrument CompilationExternal Link for Tables A and B of the Schedulephasing out annual effective life reviews to instead make determinations as required.Who we consultedProfessional associationsTax professionalsMembers ofLarge Business Stewardship GroupTax Practitioner Stewardship GroupOutcome of consultationNo feedback was received.The ATO will publish effective life ruling content on ato.gov.au and phase out the annual effective life review process, instead making determinations as required. More information on how determinations will be made will be published on ato.gov.au and promoted through social media and our usual communication channels.Consultation leadSean Bielanowski, Public Groups and InternationalEffectiveLifeCOE@ato.gov.au Phone 07 3213 5729[202310] Information repository for digital service providersConsultation purposeTo seek feedback on proposed enhancements to the information repository for digital service providers (DSPs).DescriptionIn 2019, the ATO established an information repository for DSPs in Online services for DSPs to provide:timely information to DSPs to support them in the production of tax and superannuation related softwareinformation to help troubleshoot common problemspractical and procedural guidancetransparency of engagement and consultation activities.The ATO is exploring opportunities to improve the user experience.Who we consultedDigital service providersOutcome of consultationFeedback received was incorporated into the design, layout and navigation of the new Online services for DSPs hub. The Knowledge Base and Collaboration Hub have been combined into the new DSPs hub, and the improved navigation is organised by function.Consultation leadChanara Fraser, Enterprise Solutions and Technologychanara.fraser@ato.gov.au Phone 02 9374 1210[202309] Tax treatment of crypto assetsConsultation purposeTo seek feedback on proposed updates to web guidance.DescriptionCrypto assets have been identified as a significant and emerging trend.The rapid rise of crypto assets has resulted in a variety of issues in relation to their tax treatment.We are updating guidance on ato.gov.au to provide greater certainty to taxpayers and support their compliance with tax obligations.Who we consultedNational Tax Liaison GroupTreasuryBlockchain industry bodyBoard of TaxationTax practitionersOutcome of consultationConsultation provided valuable feedback which is being considered for incorporation into the updated web guidance.Consultation leadKlarence Lim, Individuals and Intermediariesklarence.lim@ato.gov.au Phone 08 9268 0845[202308] Tax consequences on sales of small scale land subdivisionsConsultation purposeTo seek feedback on proposed additional Tax consequences on sale of small-scale land subdivisions examples.DescriptionThe ATO is seeking to expand on the recently published Tax consequences on sale of small scale land subdivisions.Two examples are provided in the existing content, but we are expanding with the addition of 2 more. The additional examples conclude the sale is not part of an isolated profit-making transaction. These will further inform taxpayers and tax advisers on how the ATO generally interprets the distinction between capital and revenue.These examples will continue to apply the principles from Taxation Ruling TR 92/3 Income tax: whether profits on isolated transactions are income and Miscellaneous Taxation Ruling MT 2006/1 The New Tax System: the meaning of entity carrying on an enterprise for the purposes of entitlement to an Australian Business Number.Who we consultedPrivate Groups Stewardship GroupProperty and Construction Stakeholder Relationship ForumOutcome of consultationConsultation provided valuable feedback which will be considered in finalisation of the examples and in any future enhancements to content on ato.gov.auConsultation leadAshley Warner, Private Wealthashley.warner@ato.gov.au Phone 07 3149 5705[202307] Implementation of a global minimum tax and domestic minimum taxConsultation purposeTo seek feedback on administrative, compliance and systems impacts with the Implementation of a global minimum tax and a domestic minimum tax measure.DescriptionThe Implementation of a global minimum tax and a domestic minimum tax measure was announced by the government in May 2023 in the Budget 2023–24 (PDF 2.4MB)This link will download a file. The government will implement key aspects of Pillar Two of the OECD/G20 Two-Pillar Solution to address the tax challenges arising from digitalisation of the economy:a 15% global minimum tax for large multinational enterprises with theIncome Inclusion Rule applying to income years starting on or after 1 January 2024Undertaxed Profits Rule applying to income years starting on or after 1 January 2025a 15% global domestic minimum tax applying to income years starting on or after 1 January 2024.On 21 March 2024, Treasury released the exposure draft materials to implement a global and domestic minimum tax. Treasury is seeking stakeholders’ views on:the exposure draft primary legislation, subordinate legislation and accompanying explanatory materialpriority issues that would inform the ATO’s administrative approach and public advice and guidance on this measureinteractions between the exposure draft primary legislation and provisions in Australia’s existing income tax law as outlined in a discussion paper.Comments can be submitted to Treasury until 16 April 2024 on the primary legislationExternal Link and discussion paper and until 16 May 2024 on the subordinate legislationExternal Link.Who we consultedLarge corporations and multinationalsProfessional services accounting firmsDigital service providersOutcome of consultationThe overarching theme from the initial phase of consultations with the market highlighted:varying degrees of readiness for commencement of the measuresignificant compliance challenges the GloBE Rules posepotential technical difficulties in capturing the data points the GloBE Information Return requires.Stakeholders raised a variety of topics about the ATO's administration and interpretation of the GloBE Rules, when enacted, including potential application of penalties, safe harbours, and interpretation questions relating to potential Australian income tax regime interactions.Feedback will be considered in our implementation of the measure, including the development of potential future public advice and guidance products.Post consultation updateWe have established the Pillar Two Global and Domestic Minimum Tax Working Group for the next phase of consultation to seek feedback on the administrative aspects of the implementation of the measure.Consultation leadAdam Peel, International, Support and Programsadam.peel@ato.gov.au Phone 07 3213 5230[202305] Client agent linkingConsultation purposeTo seek feedback on the ATO’s new agent nomination process which allows clients to securely nominate an agent through ATO’s online services.DescriptionThe ATO is seeking to understand the potential impacts of this new process on businesses and intermediaries, including:understanding requirements for implementation of the new processtesting communication productsreviewing post implementation feedback to identify any potential opportunities for improvement to the user experience.Who we consultedTax practitionersTax Profession Digital Implementation GroupTax Practitioner Stewardship GroupSmall Business Stewardship GroupBAS Agent Association GroupOutcome of consultationClient-to-agent linking is a fraud prevention control implemented to strengthen access to our online systems. From 2022–23 it was deployed to Australian business number entities excluding sole traders. Targeted consultation with professional associations, registered agents and businesses pre and post deployment provided valuable feedback. The ATO implemented a range of changes to the process as a result of this consultation and will use insights to inform future deployment phases.For more information, see Client-to-agent linking.Consultation leadZiva White, Strategy and Supportziva.white@ato.gov.au Phone 07 3213 5640[202304] Legacy payment system – chequesConsultation purposeTo seek insights into ways the ATO can reduce the number of outbound cheques being issued to clients with agents.DescriptionTraditionally, some government agencies have been significant users of cheque payments, but this is changing. Australian Government agencies have been taking steps to reduce payments by cheque, e.g. The Department of Human Services stopped issuing cheques for welfare payments through Centrelink in January 2016 and for the Medicare rebate and Pharmaceutical Benefits Scheme refund payments in July 2016.Despite a whole-of-government focus to reduce issuing cheques, the number of cheques being issued to taxpayers has not decreased as expected.We are seeking insights from tax agents to understand:their perspectives on why cheques being issued is increasinghow they manage the input and maintenance of financial institution account details for their clients within their practiceways the ATO can work collaboratively with the community to reduce cheques.Who we consultedTax agentsOutcome of consultationFeedback provided understanding of opportunities to reduce the number of cheques being issued to clients through tax agents.Consultation leadTina Markov, Client Account Servicestina.markov@ato.gov.au Phone 08 8208 1428[202303] Tax deductions – fees paid for financial adviceConsultation purposeTo seek feedback on the proposed draft taxation determination prior to publication of the draft for public consultation.DescriptionThe ATO is developing a taxation determination on deductions for fees paid for financial advice that will broaden and replace Taxation Determination TD 95/60 Income tax: are fees paid for obtaining investment advice an allowable deduction under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) for taxpayers who are not carrying on an investment business? which was originally released in 1995 and last updated in 2012.The taxation determination will:set out the Commissioner of Taxation’s preliminary view on the deductibility of financial advice fees under sections 8-1 (deductions) or 25-5 (deductions for tax-related expenses) of the ITAA 1997 for individuals who are not carrying on a businessprovide more certainty to taxpayers and tax professionals on tax deductions for fees paid for financial advice.Who we consultedNational Tax Liaison GroupFinancial services professional associationsFinancial advice providersOutcome of consultationFeedback received is being considered for incorporation into the draft taxation determination.Consultation leadDanijela Jablanovic, Individuals and Intermediariesdanijela.jablanovic@ato.gov.au Phone 07 3213 5864[202302] 2023 Digital Services Gateway APIsConsultation purposeTo co-design Digital Services Gateway (DSG) features and Application Programming Interfaces (APIs).DescriptionThe DSG was implemented in 2021 to enable lightweight APIs to support digital service providers deliver tax and superannuation services.Who we consultedDigital service providersOutcome of consultationConsultation is discontinued. The decision to discontinue this matter was made because relevant discussions on the development of DSG APIs occurred and were reported through ATO consultation groups. This ensured valuable insights and feedback were considered without duplicating efforts.Consultation leadSonia Lark, Enterprise Solutions and Technologysonia.lark@ato.gov.au Phone 02 4725 7460[202301] User research – outstanding lodgment and/or payment obligations advice to agentsConsultation purposeTo seek feedback on and gauge interest in the use of Online services for agents practice mail messages to advise outstanding client lodgment and/or payment obligations and necessary actions to be taken.DescriptionThe ATO currently makes phone calls to tax agents for each client that has an outstanding lodgment and/or payment obligation, often leading to multiple calls to the same agent.The ATO is seeking feedback from participants who piloted receiving Online services for agents practice mail messages regarding outstanding lodgment and/or payment obligations. This digital interaction combines multiple clients with outstanding obligations in one message, in lieu of telephony contact for each client individually. The aim is to understand agents’ appetite for the use of this digital channel and identify any issues and/or opportunities with the process.Who we consultedTax agents who have multiple clients with outstanding lodgment and/or payment obligations.Outcome of consultationFeedback confirmed the value of utilising digital platforms versus telephone interactions for managing outstanding debt and lodgment obligations, providing tax agents with an improved experience.Consultation leadGeorge Tsangari, Lodge and Paygeorge.tsangari@ato.gov.au Phone 08 7422 2770