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10 Jun 2021 Advocacy Tracker

Key issues on the radar 

Our Tax Policy and Advocacy team is always working for our members. Our new Advocacy Tracker sets out the key issues that we are advocating for on your behalf, including additional resources via the hyperlinks. Should members have any queries or wish to discuss matters with the Tax Policy and Advocacy team, please contact us at Tax Policy. 

Issue 

Tax Policy and Advocacy activity 

Stakeholder 

ITEMS ADDED/UPDATED THIS WEEK 

 

 

Update and next steps for PCG 2021/D2 — professional firm profits 

Following the release of PCG 2021/D2 on the allocation of professional firm profits and the ATO’s compliance approach, The Tax Institute is working through the specifics of how we will engage with our members on this important issue. 

The Tax Institute has published a member-only fact sheet on the PCG and has worked with the other professional bodies to lodge a Joint Submission with the ATO. The Tax Institute has also lodged a TTI Submission with the ATO. 

The Tax Institute is working closely with the special purpose sub-committee. This week, the sub-committee met to discuss next steps, and we are working on information products, tools and resources for our members to understand any updates to the draft PCG. 

If you have any further feedback on this issue, please contact us at Tax Policy

ATO 

ATO consultation - client verification standards for the tax profession 

The Tax Institute has formed a special purpose sub-committee to consider the ATO’s consultation paper Transition to strengthening client verification. The consultation paper sets out five consultation questions for consideration. 

The draft guidelines are designed to set a minimum standard to be applied across the tax profession to ensure due diligence is taking place when engaging new clients, or where a tax or BAS agent suspects an existing client may have had their identity compromised. 

We have engaged with the sub-committee as well as the SME and Tax Practitioner Technical Committee to explore the main concerns in relation to the verification requirements set out in the consultation paper. 

ATO 

TPB draft supervisory arrangements guidance 

The Tax Practitioners Board has released exposure draft guidance, TPB Information Sheet TPB(I) D46/2021 – Supervisory arrangements under the Tax Agent Services Act 2009, which is open for comments until 28 June 2021. 

The Tax Institute is proposing to make a submission. If you have any comments or feedback on this issue, please contact us at Tax Policy

TPB 

State Budgets 

Following the release of the Victorian Budget 2021–22 on 20 May 2021, The Tax Institute’s Victorian State Taxes Committee has made a submission that commended a number of the proposed measures, but also expressed concerns in respect of: 

  • a ‘premium’ land transfer duty rate; and 
  •  a mental health and wellbeing payroll tax surcharge. 

We are working closely with the State Tax Committees in New South Wales, Queensland and Tasmania in relation to their upcoming State Budgets. 

State Governments 

ONGOING ITEMS 

 

 

Digital activity statements 

Following a number of members raising the issue of the removal of paper activity statements with us, The Tax Institute escalated the matter to the ATO late last year. 

This has resulted in a series of regular meetings to discuss the impact of the ATO’s decision to remove paper quarterly PAYG and GST instalment notices and the design of an interim solution which involves the reinstatement of paper activity statements from the March 2021 quarter. 

We continue to work with the ATO in the design of a permanent solution. 

ATO 

Review of Tax Practitioners Board 

The Tax Institute has lodged a confidential submission with the TPB on the Final Report of the Review of the TPB, and is currently preparing a submission to Treasury which will be publicly available. We are working through each of the 28 recommendations and determining our position on each aspect of this important review. 

Comments by The Tax Institute’s President, Peter Godber, were reported in TaxVine on 26 February 2021. 

Treasury/TPB 

Transfer balance cap indexation 

There are concerns about the practical effect of the indexation of the transfer balance cap from $1.6 million to $1.7 million on 1 July 2021. The concerns relate to the practical issues associated with the proportionate indexation of the personal transfer balance cap for those who have commenced an income stream with a value of less than $1.6 million. 

The Tax Institute has escalated this issue to the ATO and the Treasury. 

ATO/Treasury 

 

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