The Australian Taxation Office (ATO) are further strengthening the security of their online services by adding an extra step into linking our accessibility with our clients.

As at 13 December 2022, businesses and organisations will need to use the nomination feature in their Online Services for business if they:

• Engage a new tax or BAS agent, or payroll service provider to represent them; and
• Provide extra authorisation to their existing authorised agent (eg: should we start representing your business for a new obligation such as activity statements or a new entity in their group).

Once you have completed the agent nomination through Online Services, your agent will have 7 calendar days to add your business to their client list.

We have been advised existing client linked are not affected, and you won’t need to take action providing you don’t change the existing arrangements.

Agents will be unable to complete the nomination form of behalf of clients.

Why are they making the change?

They need to further strengthen the security of their online services to respond to increasing efforts by criminals to impersonate legitimate users to lodge fraudulent tax returns, or gain access to data which they can make money from.

Tax/BAS agents and payroll service providers are unfortunately not immune to fraud and identity theft. To counter the increased risk, the ATO are strengthening their front-end controls to:

• Help protect clients and agents;
• Ensuring only authorised agents or payroll service providers can link to your accounts and access your tax/super details;
• Give agents more confidence in the identity of their new client/s; and
• Bringing their processes into line with best practice and community expectations.

This will compliment enhanced security measures such as client verification practices and Relationship Authorisation Manager (RAM).

The ATO do understand this adds an additional step between client, agent and them but they are working hard to balance ease of services alongside the need for security.

Phased Roll Out

They ran a successful pilot for this new process in mid-2022 and from tomorrow, will progressively expand the process, starting with businesses.

The ATO will consult with agents and industry representatives to ensure they take taxpayer and agent needs into account as the process is put into place.

How to know if you’re included

Once logged into Online Services, you will receive a notification when the change is applied to you. You will also be able to see the new Agent Nomination feature (Select Profile then Agent details).

There will be steps your agent or payroll service provider will need to complete in the beginning.

Your agent will need to start with verifying your identity via Proof of Identity documents before they can provide their Registered Agent Number for you to complete the nomination form. Your agent or payroll service provider will then be able to assist you with the balance of the process.

Online Services Registration

If you aren’t already set up to use Online services for business, the ATO have detailed information available to help you get started.

You are also welcome to contact us or your Advisor for additional assistance.

** Above information has been taken from the Australian Taxation Office website