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Complex processes, technical glitches, and insufficient ATO support with client-agent linking are having a direct financial impact on practices, the association warns.
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Client-agent linking threatening ‘viability of practices’, CA ANZ tells ATO
12 March 2024
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The client-agent linking process is financially impacting the operation of accounting practices and affecting the ability of tax agents to service new clients, Chartered Accountants ANZ has told the ATO in response to its post-implementation review.
As part of its response, CA ANZ collated over 15 pages of member complaints, identifying a vast array of issues with the current process.
“Some members are concerned that the current client-agent linking model is impacting the financial viability of their practices when lower compliance cost alternatives are available,” said CA ANZ.
In its submission, CA ANZ said members in small practices or newly established practices are particularly vulnerable to the frustrations experienced by new clients trying to navigate the process.
“They do not have the resources available to be able to sit with the client in front of a computer and walk through the complex client-agent linking process step by step. They also cannot afford to do this on a systemic basis,” the association said.
“Requiring the clients to deal with the ATO directly leads to an unsatisfactory user experience for the client and in turn, the client thinks the tax agent is incompetent as they cannot assist.”
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Some potential clients have simply given up on the process and remained with their existing tax agent, CA ANZ said.
Complexities with the process
Members have told CA ANZ that one of the key issues is the complexity of the process and lack of clarity for clients.
“A significant impediment to the client nominating a tax agent is the fact that the client agent linking process involve[s] a few processes even before the client can reach the stage to actually nominate a tax agent,” the association said.
These processes may include applying for a myGovID, registering for Online Services for Business (OSfB), and updating information on the Australian Business Register.
“When a client is finally registered for OSfB, they can start the nomination process for a tax agent. However, as the client must do the nomination, a common mistake is for the client to link their ABN rather than the TFN and therefore the tax agent will only gain access to the Integrated Client Accounts (ICA) and not Income Tax Accounts (ITA). To fix this, the client must do the nomination again,” CA ANZ said.
“As a result of this complexity, many clients rely on their tax agent to assist with the processes required before you can reach the nomination stage.”
CA ANZ said the ATO must simplify the process to make it more user-friendly and reduce the likelihood of errors.
The client’s appointment of a tax agent should not involve pushing clients toward existing processes that are not necessary to appoint a tax agent, the association said.
“In particular, business clients that are not registered for OSfB, have made that decision for a reason – they are relying on their tax agent to deal with the ATO online,” the submission explained.
“The ATO should not be pushing these clients to be registered for OSfB. There are simpler methods to verify a client’s appointment of a tax agent.”
If the ATO is to continue including myGovID/OSfB/ABR as requirements for client-agent linking, CA ANZ said these processes will then need to be streamlined.
“Updating client records on the ABR should be streamlined so reliance is not on the previous tax agent to update ABR information. Furthermore, establishing clearer protocols for the transition of tax agent roles could mitigate delays and improve client experience,” it said.
Technical issues
Frequent technical issues within the system have also caused interruptions and delays in processing the client-agent linking, according to CA ANZ.
“For example when trying to nominate a tax agent for their partnership, there is no option to tick the ITA,” the association explained.
“This happens when they are coming from another tax agent and the agent then has to call the ATO to rectify the situation.”
Inadequate support from ATO
CA ANZ also criticised the lack of support available for resolving issues promptly in the current system, which has left tax agents and clients unable to fulfil lodgement obligations.
“When the mode of last resort is contacting the ATO, this has caused a lot of frustration for clients. Clients are on hold for hours with the ATO,” CA ANZ said.
“Sometimes the ATO line terminates [and] the client redials and reverts to the back of the queue. If clients are able to get through to the ATO call centre, often staff are not trained to help them with the myGovID/ABR/RAM/agent linking problems.”
The association said the ATO must establish more effective and responsive support channels for clients and agents to resolve issues promptly.
“Tax agents need alternative avenues which do not involve calling the ATO. Furthermore, the ATO needs to have an alternative way to nominate an agent for clients that refuse to sign up for myGovID or are unable to,” it said.
“Regarding ATO call centre support, the ATO needs to have a dedicated phone line which connects to dedicated ATO officers who are trained in answering all client-agent linking queries.
“The ATO call centres also need the ability to organise a time that is convenient to discuss the issue if the call cannot be immediately taken.”
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