The Latest Tax Agent Nomination Process and What it Means to You

Navigating the digital world can be a minefield, especially when it comes to sensitive information like your business's tax and super details. Thankfully, the Australian Taxation Office (ATO) is proactively guarding your data with the new agent nomination process.

Launched on November 13, 2023, this system empowers you to control who accesses your vital tax and super information – a crucial step in combating fraud and ensuring only reliable professionals handle your affairs.

Why is the agent nomination process important?

Before this system, anyone with your ABN could potentially appoint a tax agent. This posed a significant risk, as unauthorised individuals could access sensitive data and potentially commit identity theft or fraud. The new process addresses this concern by placing the power squarely in your hands and provides the following benefits:

• Enhanced security:Only your nominated agent can access your information, minimising the risk of unauthorised access and fraudulent activity.
• Peace of mind: You gain greater control and confidence knowing your tax affairs are handled by a trusted professional.
• Streamlined communication: The ATO can directly communicate with your authorised agent, ensuring efficient and accurate handling of your tax and super matters.
• Improved efficiency: The online process simplifies agent authorisation, saving you time and effort.

Who does the process apply to?

The agent nomination process applies to all types of entities with an ABN, including:

• Companies and strata title bodies
• Partnerships
• Trusts
• Not-for-profits
• Joint ventures
• Cooperatives
• Self-managed super funds (SMSFs)
• APRA-regulated superannuation funds

The ATO had already rolled out the agent nomination process to the following:

• Public and multinational businesses who are part of the Top 100 and Top 1,000 – effective from 19 June 2022.
• Most public and multinational businesses – effective from 13 December 2022.
• Businesses in our Top 500 privately-owned wealthy groups, where that group has a significant level of ownership – effective from 13 December 2022.
• Government entities – effective from 24 February 2023.

The new requirement does not currently apply to individual taxpayers or sole traders.

What do you have to do?

If your business has an ABN (excluding sole traders), you can now nominate your authorised tax agent, BAS agent, or payroll service provider through the ATO's online services. Here’s how you can get started:

1. Set up your myGovID and make sure it's linked to your ABN for a smooth login experience.
2. Login to the ATO's Online services for business.
3. Find your trusted agent using their registered agent number and verify their details.
4. Grant the access your agent needs and complete the declaration.
5. Let your agent know you've given them access and that they have 28 days to act on the nomination before it expires.

For the detailed process, you can refer to ATO’s client-agent linking steps page.