The Coalition’s myTax scheme, comprising online and substantially pre-populated tax returns, has been widely predicted to hurt accounting businesses.
The system was available for the first time for 2013-14 tax returns.
Geoff Leeper, second commissioner of the ATO, told sister publication AccountantsDaily that the automation process would only alter the types of work available to the accounting profession.
“We are not trying to do tax agents out of a role; there are always going to be those questions of interpretation and that question of people’s confidence in dealing with the tax system,” he said.
“There is also the potential upside of the financial services profession and the tax agent profession being able to reposition themselves slightly as trusted business advisers.”
Speaking to SMSF Adviser, an ATO spokesperson said tax agents and accountants have a pivotal role to play in assisting SMSF trustees understand their obligations and remain compliant, and was confident automation will have a positive effect on this role.
“Automated processes and software will free up tax agents, accountants and other SMSF advisers’ time from having to manually enter data into financial reporting systems, or to manually complete online forms etc. and afford them more time to focus on providing value added advice and support to SMSF trustees to help them and ensure that they comply with their regulatory and income tax responsibilities,” the spokesperson said.
They also noted that ATO material encourages SMSF trustees to seek professional guidance.
“Much of the ATO guidance and support encourages trustees to engage the support of SMSF professionals, particularly for the more complex aspects of their SMSF’s regulatory and income tax obligations,” the spokesperson said.
“The ATO is unlikely to ever have the capacity to engage one-on-one with every SMSF trustee on a regular basis, and the ongoing advisory relationship that SMSF trustees have with their trusted adviser is an essential element in ensuring that the SMSF sector operates effectively and as intended for the sole purpose of growing and providing retirement and death benefits for SMSF members.”
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I have no sympathy whatsoever for tax agents who lose business because the government changes the rules. It SHOULD be easy for people to interact with the government, including with paying their tax. That a whole industry has popped up around to help people with the government just emphasises why the ATO badly needed reform. A simpler tax system is the next stage of that and I say “bring it on!.” The fewer people leeching off the productive work of others the better.
I wish they’d do the same for things like conveyancing too. Buying and selling a house privately should be as easy as buying and selling a car privately.
I think the ATO is confusing Tax Agents and Accountants. Yes some accountants running accounting practices are also Tax Agents. But not all Tax Agents run Accounting businesses. Also not all Tax Agents are capable of providing the compliance services in SMSF (nor accountants for that matter
) that the ATO is alluding to.
It looks Like the ATO is clutching at straws with this analogy.
As a registered tax agent I had watched with interest and alarm as the ATO made these announcements that I needed to refocus my business. As I have been an accountant and tax agent for many years I have seen successive compensations schemes offered to my clients in various industries. I would be very interested in receiving compensation from the Government if they plan to not only devalue my business but also to eventually do me out of a job. It happened for the dairy industry, it happened for Telcos recenctly in relation to metadata storage. What about tax agents?