In an ever-evolving digital landscape, safeguarding sensitive information is paramount. As part of our commitment to ensuring the security of your online interactions, The Australian Taxation Office are rolling out important changes to the client-to-agent linking process in their online services. This update aims to strengthen security measures, protect against fraud, and provide greater peace of mind for both the tax agent and their clients. Here’s what you need to know:

Overview of the Update

Effective November 13, 2023, all businesses holding an ABN (excluding sole traders) will be required to nominate their agent before an agent can add them to their client list. This new procedure is designed to enhance security across our online services.

A Phased Rollout

To ensure a smooth transition, the ATO have implemented a phased rollout of this update. The rollout schedule is as follows:

Public and Multinational Businesses: This update became effective on June 19, 2022, for businesses within the Top 100 and Top 1,000 categories.
Most Public and Multinational Businesses: Starting from December 13, 2022, the update extended to include most public and multinational businesses.
Private Wealthy Group: Effective from December 13, 2022, businesses in the Top 500 privately-owned wealthy groups were also included.
Government Entities: Government entities joined the rollout on February 24, 2023.
All ABN-Holding Businesses (Excluding Sole Traders): The final phase, set to begin on November 13, 2023, will include all businesses with an ABN, excluding sole traders.

Why These Changes?

The primary objective behind these updates is to reinforce the security of the client-to-agent linking process. By doing so, The ATO ensure that the agent and the client can have full confidence that the client has formally authorised you to access their information and act on their behalf. This added layer of security is crucial in our ongoing efforts to combat sophisticated fraud attempts within our system.

How This Benefits You

1. **Reducing Identity Theft**: Identity theft and fraud can pose significant risks to both taxpayers and registered agents. Criminals may impersonate taxpayers and engage an agent to commit fraud or attempt to gain access to client information through digital platforms.

2. **Reducing Workload**: The ATO understand that identity theft incidents can lead to substantial disruptions for agents. This can include extensive time spent resolving issues, arranging for identity document re-issuance, and dealing with the consequences of employee fraud.

What’s Changing

– The Agent will need to ensure that clients nominate them as their agent.
– After the client completes the agent nomination, the agent will have 7 calendar days to add them to their client list in Online services for agents or the practice software.

Guidance for the Agent

When taking on a new client or modifying authorisations for an existing client, here are the steps to follow:

1. Complete the Proof of Identity (POI) requirement steps.
2. Provide your client with your registered agent number (RAN) and practice name.
3. Guide your client through the agent nomination process.
4. Remind your client to inform you once they’ve completed the nomination.
5. Add or update the client within 7 days after their nomination.

Support Information for Agents and their Clients

To ensure a smooth transition, The ATO have provided various support resources, including agent nomination information for your clients, a summary of linking steps, and detailed instructions for adding a client in Online services for agents and Practitioner Lodgment Service.

For further information please see the ATO website