SMSFs to navigate enhanced online security measures
A new layer of verification from the ATO will ensure only authorised tax agents, BAS agents or payroll service providers can link to an SMSF.
Mary Simmons, head of technical for the SMSFA, said the additional security measures are part of the ATO’s commitment to safeguarding taxpayer’s information from fraudulent activity and identity theft.
The client-to-agent linking protocol will start on 13 November and will become standard for all entity types with an ABN, excluding sole traders but including SMSFs.
“While this update is rooted in a strategy to curb fraud, it is our understanding that for the majority of existing SMSF trustees, the daily operation of their fund remains unaffected,” Ms Simmons said.
“This change only impacts SMSFs seeking to nominate a new agent or make changes to existing agent authorisations.”
She added that for SMSFs that do not require a change to their authorised agent or a change to the authorisations given to an existing agent, the transition will be seamless.
“There is no need for action or concern. This ensures that stability is maintained for the overwhelming majority of funds, who can continue to rely on established client-to-agent links and authorisations,” she said.
For new SMSFs, the new measures will require during the ABN/TFN registration process the inclusion of an agent’s details to allow them to be linked to the SMSF.
However, Ms Simmons said SMSFs with a corporate trustee need to use the online service to nominate an agent or change agent authorisations, they will need manual intervention by the ATO.
“The primary director of the corporate trustee will need to contact the ATO on 13 28 66 to receive step-by-step guidance on linking their MyGovID to the SMSF’s ABN,” she said.
“This change is not confined to SMSFs and affects all trust structures with a corporate trustee.”
Ms Simmons said the real impact of the changes will only emerge over time as the additional layer of process is tested against the day-to-day realities faced by agents. “At present, there is a strong sense of trepidation as to the impact it will have on agents who are already stretched due to staffing shortages and the constantly changing policy landscape,” she said.
“It is expected that many trustees will also be apprehensive about the new online service requirements, particularly in light of the challenges many faced when trying to set up a MyGovID account to register for a Director ID late last year.”
The SMSFA has provided a list of some considerations to ensure that interactions with the ATO’s online services are streamlined, to try to minimise the burden on trustees and their authorised agents.
To try and minimise any complications, the SMSFA encourages trustees to ensure their fund’s ABR records are up to date and they avoid last-minute agent changes, especially as key lodgment dates for annual returns, BAS and TBAR approach.
For more detail, the ATO has also released the following information:
Steps to assist with nominating an agent
A checklist to assist with completing the client-to-agent linking process
If there are any issues, the SMSFA would like trustees, or their agents, to notify them at
