services for tax practitioners day 2 · agenda|day two 2 welcome reasonable use of services...

Services For Tax Practitioners – Day 2

Digital Partnership Office

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AGENDA|DAY TWO

2

Welcome

Reasonable use of services

Software Developer website transition

Kylie Johnston

Digital Identity/M2M Claire Miller

Activity statement changes Michael Karavas

Communication preferences Mark Ayers

UNCLASSIFIED – Services for Tax Practitioners Day 2

Ross Barns

2020 IITR income schedule – granular data

CA 2020-206 – Personal income tax

Copies of return

Substantiation

Real-time analytics for individuals (existing service overview)

Company tax return instructions

Dimce Ristevski

Real-time analytics for non-individuals Matt Williams

GST at settlement Jonathon Colman

Online Services for DSPs Sharna Maltman

Activity Statement Financial Processing Chris Rock

Digital Partnership Office Presented by:

Kylie Johnston

Director, Digital Partnership Office

ATO.gov • Access to general

product information • system outages

Software Developer.ato.gov.au API and service information • Flat files, guides and

specifications • Engagements &

consultations • DPO as owners

ShareFile (SBR.gov) • Access conformance

suites and certificates • Requires IP1

authentication

SBR.gov • Access all agency

information • BRR as the owners • DPO/DWS owns 80%

content • Both unauthenticated

and IP1 authenticated content

DSP Newsletter and Alerts • ATO emails weekly

news and information • ATO emails urgent

alerts

API.gov • Beta test site • Potential for single access

point for all agencies • Hosted on DTA open

source cloud infrastructure • Owned and updated by

BRR

Online services for DSPs • DSP online support • DPO owned and

managed • Visibility of DSP profile • Ability to publish alerts • Inward and outward

messaging

Industry.gov.au (VANguard status) • Status of Vanguard -

AUSkey

PLS & Super dashboards (ATO.gov) • Separate dashboards • Service specific status • Ability to add urgent alerts

Alternate contact channels • Call SBR Service Desk • Email DPO • Call Account

manager (T1)

ABSIA.asn.au • Access to industry

information • Privately run for

members • Hosts old ATO

funded Product register

DSP

SBR2.status.Bluemix.net • System status page • SBR2 – prod 1, 2 and EVTE • Scheduled maintenance • No alert functionality

Software Developer Website Transition | CURRENT DSP EXPERIENCE

UNCLASSIFIED – Services for Tax Practitioners Day 2 4

API.gov • Beta test site • Potential for

single access point for all agencies

• Hosted on DTA open source cloud infrastructure

• Owned and updated by BRR

Alternate contact channels • Call SBR Service Desk • Email DPO • Call Account manager

(T1)

ABSIA.asn.au • Access to industry

information • Privately run for

members • Hosts old ATO

funded Product register

DSP

Industry.gov.au (VANguard status) • Status of Vanguard

- AUSkey

AUSkey end of life March 2020

ATO.gov (DSP content only) • Access to general

product information • system outages

Software Developer.ato.gov • API and service

information • Flat files, guides and

specifications • Engagements &

consultations • DPO as owners

ShareFile (SBR.gov) • Access conformance

suites and certificates

• Requires IP1 authentication

SBR.gov • Access all agency

information • BRR as the owners • DPO/DWS owns

80% content • Both

unauthenticated and IP1 authenticated content

DSP Newsletter and Alerts • ATO emails weekly

news and information • ATO emails urgent

alerts

Online services for DSPs • DSP online support • DPO owned and

managed • Visibility of DSP profile • Ability to publish alerts • Inward and outward

messaging

PLS & Super dashboards (ATO.gov) • Separate dashboards • Service specific

status • Ability to add urgent

alerts

SBR2.status.Bluemix.net • System status page • SBR2 – prod 1, 2 and

EVTE • Scheduled maintenance • No alert functionality

One access point for DSPs

Note: Whilst 90% of SBR.gov is ATO specific information, it also hosts a small amount of information about other government agencies. The content is wholly managed by ATO/BRR and will continue to be supported under the one access point. This is a stepping stone to a broader WofG central access point for DSPs.

ATO Digital Services Modernisation (ADSM) • Delivery of an API Portal – not yet defined

?

Software Developer Website Transition | FUTURE DSP EXPERIENCE


Phase 1

Migration of Software Developers (SwD)

website to new GovCMS Drupal 8 platform

Phase 2

Consolidate by migrating SBR

website to new GovCMS Drupal 8

platform

Redesign information architecture to

provide improved end user

experience

Phase 3

Work towards Whole of Government

(WofG) digital platform for DSPs in

alignment with the ATO’s Digital

Services Modernisation program of

work

AUG 2019 DEC JAN 2020 JUN JUL 2020 DEC

• Lift and shift of Software Developers

content to new platform

• Minimal changes to information

architecture (IA)

• Minimal changes to content – prioritise

high use pages

• New look and feel

• Consultation with some DSPs for small

changes to content

• Decommission old SwD site

Wh

at

we a

re g

oin

g t

o d

o

• Consolidation of SBR.gov and

Software Developer

• Co-design and validate historical DSP

feedback for new IA

• Build prototypes (wireframes)

• Build minimum viable product for

Private, Public beta testing

• Implement the redesigned IA to deliver

easy and logical navigation functionality

and a better end user experience

• Consolidate Product registers - ie STP

product register (API.gov), SBR

product register (SBR.gov) and No-cost

low-cost STP solutions (ATO.gov)

• Possible change to domain name /

URL

• Decommission old SBR site

• Align with ADSM work currently

underway

• Late-September - site migration

• Late-November - go LIVE

Software Developer Website Transition | DSP DIGITAL PLATFORM TRANSFORMATION

PROGRAM

6 UNCLASSIFIED – Services for Tax Practitioners Day 2

Digital identity/M2M Presented by:

Claire Miller

Director, Digital identity

$2.2b

IDENTITY CRIME is one of the most

common crime types in Australia

HOURS 18

Victims of identity fraud

spend an average

repairing the damage caused

Non-financial

impacts to victims

1 in 10 identity crime victims suffered mental

or emotional distress

10%

1 in 14 wrongly accused of a crime

7% Every 20 seconds an

Australian is a

victim of ID crime

1 in 5 Australians or

over 21% have been

a victim of ID crime at

some point in their lives

Estimated annual costs to individuals, victims, business and government agencies

38% did not believe the police

would do anything

22% were too embarrassed

28% did not know where or how to

report

UNDERREPORTED

Around 5% of Australians

experience financial loss as a result of ID

crime

38% of Australians do not

report ID crime, of these:

More common than robbery,

motor vehicle theft,

household break-in

or assault

Source: Dept. of Home affairs, Criminal Justice Division Identity crime in Australia


for Australian residents and visa holders

(2016-17) (2016-17)

Aus. residents for tax

purposes

Non-resident for tax

purposes

Resident (for tax

purposes)

Non-resident (for tax

purposes)

( 0-19 yrs; 20-30 yrs;

31+ yrs)

Individual Company

Trust Partnership Super Fund

Government

Individual Company Trust

Partnership Super Fund

Government

Over 5m TFNs mapped directly to Associates of

7.2m ABNs

Only 7.7m have their myGov account linked to ATO

Only 1m use the ATO App

New TFNs are not automatically connected to myGov, ATO Online or ATO App

Less than 2m ABNs have an online account/ credential with the ATO or Digital Service Providers (via Cloud)

No ABN (or underlying TFN of an Associate) receives credentials or an online account during registration

X X X X

The ATO has a large interest in identity


Why are we replacing AUSkey?

AUSkey has not kept pace with changes in technology and doesn’t meet the future needs of most businesses. AUSkey is:

not supported on mobile devices

not compatible with all internet browsers

difficult to setup and maintain

restricted to online services and authorisations do not carry across channels (i.e. cannot be used to contact the ATO by phone)

unable to provide password reset functionality, forcing users to re-register when a password is forgotten

difficult for users who want to view and manage multiple AUSkeys with some businesses having up to 200 AUSkeys

does not support dual consent.


Digital identity/M2M | AUSKEY REPLACEMENT

What will replace AUSkey?

The ATO has built or is building:

• myGovID: Individual credential used to identify yourself.

You can authenticate and access government online services

using myGovID

• Relationship Authorisation Manager (RAM): Whole of

government solution that allows individuals to claim their

associated entity and assign permissions for other users

to access government online services for their business

• A new machine to machine (M2M) solution to support existing M2M arrangements –

replacing device AUSkey. RAM allows DSP to generate and manage M2M credentials

• A SAML service to support Government agencies to on-board with

minimal impact called Business Authentication Manager (BAM).

+


Digital identity/M2M | WHAT WILL REPLACE AUSKEY? – OVERVIEW


myGovID:

• myGovID is an App, currently available in the Apple App store. It will be available in the Android Play Store in October

• myGovID is your digital identity which makes it easier to prove who you are online

• myGovID lets you prove who you are when using government online services – like having an ID on your phone

• myGovID requires you to prove your identity once. You can then present this identity when authenticating to Government online services on behalf of business

• myGovID is available right now.


Digital identity/M2M | myGovID


RAM:

• RAM enables you to manage your business authorisations in one place

• RAM allows you to act on behalf of a business with participating government online services

• When you’re authorised, RAM will allow you to create and manage machine credentials (replacing device AUSkey)

• RAM is accessed with a myGovID credential

• RAM will require every business to be claimed by an associate

• RAM is available right now.


Digital identity/M2M | RELATIONSHIP AUTHORISATION MANAGER (RAM)


M2M:

• M2M will replace device AUSkey with a new credential called ‘machine credential’

• M2M will also offer a new Secure Token Service (called MAS-ST) which will replace VANguard’s STS

• Machine credentials will be created and managed through RAM

• Authorised representatives will require a specific permission to be able to create and manage machine credentials on behalf of a business

• Machine credentials are backwards compatible with device AUSkey and MAS-ST can provide software authentication where the user has an AUSkey

• New machine credentials will be available from mid-September and MAS-ST will be available in production from late October.


Digital identity/M2M | MACHINE TO MACHINE (M2M) SOLUTION


BAM:

• BAM will enable agencies to accept user authentication with a myGovID and a RAM business authorisation for their portal, without the need to significantly reconfigure their portal.

• ATO will provide the BAM service which will provide agencies with the similar authentication mechanism provided by VANguard User Authentication Service (UAS)

• Users will provide their myGovID and select a Business from RAM instead of using an AUSkey when authenticating to government agency portals

• Agency portals will gradually onboard to the BAM authentication solution. We are managing the onboarding process.


Digital identity/M2M | BUSINESS AUTHENTICATION MANAGER (BAM)

We are undertaking a number of activities to assist DSPs transition to the new M2M solution. These include:

• EVTE (External Vendor Test Environment) trial – We conducted an EVTE trial of the new

M2M solution from April with users confirming that for the most part, the only change required was to

update the ST endpoint and get the new credential. This trial was limited to SBR2 services and

provided valuable feedback on the new solution. An SBR1 EVTE trial will commence soon.

• Ongoing availability of the M2M solution in EVTE – A generic new machine credential is

currently available in EVTE for you to test your software. In addition, we have published the EVTE

version of the new

MAS-ST endpoint. All DSPs are encouraged to undertake this testing as soon as possible.

• Encouraging representatives from DSPs to create a myGovID now –

to begin claiming and authorising businesses in RAM and managing

existing AUSkeys.


Digital identity/M2M | HOW WE ARE SUPPORTING DSPS TRANSITION TO THE

NEW M2M SOLUTION

We are undertaking a number of activities to assist business more broadly transition to the new Digital identity solution. These include:

• Ability to migrate AUSkey authorisations (including permissions in Access Manager) into

RAM.

An authorised user will be able to migrate existing AUSkeys and convert them to

business authorisations in RAM. These will be subject to acceptance by the authorised

party

• Working with government agencies to transition their portals to accept the new

credentials

via Business Authorisation Manager (BAM)

• Encouraging business representatives to create a myGovID now, begin

claiming and authorising businesses in RAM and managing existing

AUSkeys. The next slide will explore what you can do now to prepare

based on what is currently available.


Digital identity/M2M | HOW WE ARE SUPPORTING BUSINESS TRANSITION FROM

AUSKEY

What DSPs can do now as a software provider

• Test new machine credential in EVTE for SBR2.

What DSPs can do now as a business

• Review your associate details in the ABR to ensure they are correct and current

• Review current AUSkeys

• Review business appointments in Access Manager

• Setup myGovID on an iOS device

• Associate should link their business in RAM.


Digital identity/M2M | TIGHT TIMEFRAMES – WHAT DSPS AND USERS CAN DO

NOW TO PREPARE FOR AUSKEY REPLACEMENT

All DSPs are encouraged to test software against the new machine credential and MAS ST service in EVTE. To do this, you will need to do the following:

• Contact DPO to get the testing package

• Update your software to new endpoint in your SBR2 EBMS client

• Download the keystore and install the new test machine credential

• Undertake conformance testing using conformance suites relevant to your products.

SBR 1 will be available soon and we will advise you when available.


Digital identity/M2M | M2M FUTURE TESTING

M2M trial for SBR2 was conducted with DSPs from 29 April to 14 June

21 DSPs participated with 11 DSPs successfully completing the trial, feedback included:

• ‘It really was just a plug and play from the old method.’

• ‘With no more than one hour’s work, I was able to implement M2M within my payroll system.’

The trial enabled participants to identify the necessary changes to software in preparation for the

production

release. Points to note include:

• DSPs identified a difference in character length of the STS time stamp length, ATO (3) and VANguard

(5).

The character length restriction of 3 has been highlighted in the test kit.

Next Steps

• A trial release of M2M for SBR1 is in development and a small EVTE trial will commence shortly.

• As the M2M solution will remain in EVTE for SBR2 we strongly recommend all DSPs test software

against the new Machine credential to identify necessary changes before the production release.


Digital identity/M2M | EVTE TRIAL OUTCOME

Cloud software vs desktop users will be impacted as outlined below:

• You will not notice any change, nor any disruption to your business. The Digital Service Provider (DSP) will undertake the action to deploy updated software and obtain the new credential.

• You will need to get an updated version of the software

• Obtain a machine credential via RAM

• Store the machine credential in an appropriate place

• Install the software and direct the software to the machine credential keystore (if required).

Business Entity Digital Service Providers (DSP)

• You will need to get a machine credential via RAM

• Store the machine credential in the same place as the device AUSkey is currently stored

• Update cloud software product to consume new credential by updating the endpoint

• Deploy updated cloud software product

• The existing Cloud relationship in Access Manager will continue to be recognised.

• You will need to create an updated version of the software

• Deploy the updated software to users

• Provide instructions to users about installing machine credentials (or direct users to ATO published instructions).

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p/o

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cally

Ho

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Soft

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oft

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e


Digital identity/M2M | AUSKEY REPLACEMENT | IMPACTS OF THE NEW M2M

SOLUTION

Users who require a form of Cross entity authorisation (XEA) will be impacted as outlined below:

Existing XEA relationships will continue to be recognised in AM (Access Manager). Currently, a credential (device AUSkey) is applied to this relationship in AM. When a business with XEAs gets a new machine credential, an authorised representative is required to apply this to the existing XEA relationships. Entities can then continue to lodge on behalf of other entities via SBR software.

Entities required to lodge information for other entities via SBR software


Digital identity/M2M | AUSKEY REPLACEMENT | M2M SOLUTION – CROSS ENTITY

AUTHORISATION (XEA)

July 2018 Private beta

Business

Oct 2018 Private beta expansion

Business and Tax Agents

June 2019 Public beta

Business Portal

Sept 2018 Private beta Tax Agents

July 2019 Sep 2019

Private Beta 1st step to AUSkey

transition functionality • Users were able to

obtain a myGovID (iOS) • Set up a businesses in

RAM (one only) • Authorise a business

representative (full access)

• Log into Business Portal / Online Services for Agents on behalf of the business.

Private Beta Enhancements

• Set up multiple

businesses in RAM • Select from a list of

businesses when accessing the Business Portal or Online services for agents

Public Beta for Business Portal

• Log into the Business Portal with a myGovID (iOS)

• Manage authorisations in RAM (including modify authorisations)

Private Beta myGovID (Android)

myGovID available for Android

Custom Permissions

RAM integration with Access Manager to customise

permissions to support ATO

Online for Agents

2018 2019 2020

Public Beta Release for Tax

Agents • Log into

Online services for agents with a myGovID

Aug 2019

Business to Business (B2B) discovery

Private Beta for

M2M solution

SBR / DSPs can

install and test

new machine

credential in

test

environment

Public Beta for Device

AUSkey replacement

solution

• Users can create a

machine credential

to secure M2M

transactions

On-boarding of

AUSkey relying

agencies

• Commence

production release

of AUSkey relying

services

We are here

March

20

20

AU

Skey DEC

OM

MISSIO

NED

April 2019 Private

beta M2M

May 2019 myGov

change to 2FA

MyGov change to 2FA

New myGov users will not

be able to link to ATO

Online if they are not using

2 Factor Authentication

June 2019 Q2 Release

Private Beta Release for Tax

Agents • Log into Online

services for agents with a myGovID

Completed Monitoring What’s next

Public Beta myGovID (Android)

myGovID available for Android

• Ability to authorise one business to act on behalf of another business

Oct 2019

Public Beta AUSkey Transition

Future Enhancements • Import AUSkey users in

RAM tool • Bulk authorisations • Commence on-

boarding AUSkey relying agencies

• Commence on-boarding other ATO AUSkey relying services i.e. DSP, DASP, ABR


Digital identity/M2M | AUSKEY REPLACEMENT | RELEASE PLAN

Digital Partnership

Office (DPO)

RAM/myGovID

support web pages

AUSkey

Information Line

IVR options:

• myGovID

• RAM

• Online Services for DSPs

• softwaredeveloper.ato.gov.au

• ato.gov.au

• ABR/AUSkey

• RAM site

• myGovID site

DSP

Customer Service Representative

A number of support options will be available to DSPs and end users via online or phone. Client enquiries will be

managed in the same way that AUSkey clients are currently managed. Phone support for clients who have

issues with myGovID/RAM will be managed under the ATO’s general support framework and DSPs will be

supported via the Digital Partnership Office.

on-line

phone


Digital identity/M2M | SUPPORT FOR DSPS AND USERS

Setting up myGovID &

Relationship Authorisation Manager

(RAM)

You will need to:

• use an iOS/Android device (Android delivery expected Oct 2019)

• provide an email address

• provide two Australian identity documents from:

Driver licence or learner permit

Passport

Medicare card.

Set up myGovID (once only) | Preconditions


Step 2 Create myGovID

account

Step 1 Download myGovID app from app store on your

phone

Setup myGovID (once only)

User is prompted to create a myGovID when accessing an online service or can go directly

to the app store and find the myGovID app

Enter and verify email address, enable touch ID/face ID, provide personal

details and create password

Now IP1

App Store

Set up myGovID (once only)


Identity document attributes provided, verified with

Document Verification Service (DVS) x2

myGovID is now ready to be used to login and access

government online services

Now IP2

Strong Strong

Setup myGovID (once only)

Facial verification coming soon

Step 3 Build identity

Step 4 Digital identity created

Liveness capture, facial image matched and

verified against photo ID document with Facial Verification

Service (FVS)

Will be IP3

Set up myGovID (once only)


Input myGovID email address and select login Navigate to

https://authorisationmanager.gov.au and select continue

How to use your myGovID to access RAM

Step 2 Provide myGovID credential

Step 1 Navigate to RAM


https://authorisationmanager.gov.au/

Locked screen initial notification

Step 4 Phone notifications

Step 3 myGovID displays access code


Unlocking screen notification


User gains access to RAM User enters the code in myGovID app on mobile phone to gain access to RAM

Step 6 Access to RAM

Step 5 Enter access code on phone



A one time process to link your business in RAM

Setup business authority in RAM

Step 1 Log into RAM and select

‘Link your business’

Validates user against businesses where they are listed as an eligible associate in the ABR

Step 2 Enter an address for tax

purposes

John

Citizen


Business relationship set-up and can now be used to manage authorisations for others

Setup business authority in RAM

Step 3 Select business to bring into RAM

John Citizen

Aelert


Log into RAM (as previously demonstrated)

Authorise employee (and give Machine Credential Administrator [MCA] role)

Step 1 Principal authority or Auth

Admin logs into RAM with their myGovID

Step 2 Principal authority or Auth Admin

clicks on ‘Manage Authorisations’ in RAM

User enters authorisation code from email

John Citizen


Authorise employee (and give MCA role)

Step 3 User puts business in focus

All business the user is authorised for will appear in the business view screen

Step 4 A list of authorised business

representatives is shown

All users authorised for the business will appear in the business view screen

John Citizen

Aelert 45001242101

Citizen, John Principal Authority



Step 6 Complete authorisation request

for business representative

Determine authorisation and access level required for user

Determine authorisation and access level required for user

Step 5 Complete details

for business representative



Step 8 Employee now appears as pending in business view

Users will appear in the business view as pending until they have accepted the

authorisation

Step 7 Confirm and send

authorisation request

Review and confirm authorisation request

Citizen, John Principal Authority

Jones, Isla



Step 9 Employee obtains authorisation

code via email

Employee receives email with authorisation code and instructions on what to do next


Employee accepts authorisation (including MCA role)

Step 1 Employee obtains authorisation

code via email

Employee receives email with authorisation code and instructions on what to do next

User logs into RAM with their myGovID

Step 2 Employee logs into RAM with their

myGovID


Step 4 View authorisation request and

accept

User enters authorisation code from email

User views detailed Summary of request and option to accept authorisation


Step 3 Enter authorisation code

Amelia Murphy

Yes

Isla Jones

Isla Jones Isla Jones

Isla Jones

[email protected]



Step 5 The authority has been granted

Aelert 45001242101

Isla Jones

Isla Jones


Employee creates and downloads a machine credential

MCA finds the business that they are authorised for and then clicks on the business they wish to

create a machine credential for

Step 1 MCA clicks on ‘Manage authorisations’

Step 2 MCA puts their business in focus

Aelert



The MCA then clicks on Manage credentials in order to go to the Create and download a new

machine credential page

A message and link is displayed if the system is unable to detect a valid Browser Extension. The

link takes the user to the RAM website where they can view information and download the Browser

Extension

Step 3 MCA clicks on ‘Manage credentials’

Step 4 An M2M Browser Enabler is required

in order to download



Once the Browser Extension has been installed the MCA clicks on ‘Create machine credential’ to

create a new machine credential

The Keystore Path is automatically generated but can be updated if required. Users enter a Keystore Password of their choice and the name they would like the credential

to be known as. The Machine Credential Custodian is automatically generated and cannot be updated

Step 5 MCA clicks on ‘Create machine credential’

Step 6 Creating a machine credential



Step 7 Credential installed

Step 8 Machine credential now displayed

The request is submitted and the machine credential created

Isla Jones



Digital identity/M2M | HIGH LEVEL FLOW FOR OBTAINING A MACHINE CREDENTIAL


Digital identity/M2M | HIGH LEVEL FLOW FOR OBTAINING SAML ACCESS TOKEN

(BACKWARD COMPATIBLE TO SBR)

• AUSkey will be decommissioned in March 2020

• The M2M solution will soon be available and you will need to get onboard as you begin to prepare

• The new machine credential will be available in production from mid September 2019

• New M2M solution will be available from end of October 2019

What you need to do

To test the M2M solution in EVTE contact the DPO via:

• Online services for DSPs (OS4DSPs):

• Log in using your AUSkey

• Complete the SBR developer registration or new contact registration form (new users

only)

• Navigate to the M2M credential group and submit a ‘Register for M2M testing in EVTE’

request

• If you cannot use OS4DSPs you can email [email protected]

Once you receive the welcome pack you will be able to test the new machine credential in EVTE.


Digital identity/M2M | NEXT STEPS

mailto:[email protected]

Further information is available at the following:

• https://www.mygovid.gov.au/

• https://info.authorisationmanager.gov.au/

M2M information:

• https://softwaredevelopers.ato.gov.au/

• DSP Newsletters

• Account Manager

In addition, you will see an increase in information across a range of forums providing updates

on AUSkey transition / M2M solution.


Digital identity/M2M | FURTHER INFORMATION

https://www.mygovid.gov.au/

https://info.authorisationmanager.gov.au/

https://softwaredevelopers.ato.gov.au/

GST at settlement Presented by:

Jonathon Colman

GST at settlement

Content

• Key elements

• Process

• Risk identification and common errors

• Property data

• Software providers

• Additional information


GST at settlement

From 1 July 2018, most purchasers of new residential premises or land that could be

used to build new residential property ('potential residential land') are required to pay

a withholding amount from the contract price at the date of settlement. This is paid

directly to the ATO rather than to the property supplier.

The purchaser will remit 1/11th of the contract price to the ATO and the remaining

money to the property supplier, or a lower 7% rate of withholding where the margin

scheme applies. 10% of the GST exclusive market value applies for certain supplies

between associates.


GST at settlement

Key elements of the GST at settlement measure


P

UR

CH

AS

ER

S

UP

PL

IER

/ D

EV

EL

OP

ER

1. Deposit

paid direct to

Supplier

1.

Withholding

notification

sent to

Purchaser

2. Form 1

sent to the

ATO

4/5. On settlement:

• Form 2 is sent to the ATO

• GST withholding payment

sent to the ATO

• Balance of contract price

paid to Supplier

4/5.

Receives

payment

1.

Agreement

reached

7. Supplier GST

Property Credit

account in ICP is

created and credit

allocated

8. Lodge

BAS and

report

property sale

8. Triggers auto

transfer of credit from

Supplier GST Property

Credit account in ICP

to their GST account

4/5. Form 2 processed:

• Liability raised on Purchaser GST

Withholding account

• Payment is credited to Purchaser

GST Withholding account

2. Form 1 processed:

• Creates Purchaser GST

Withholding account in ICP

• PRN and LRN provided on

submission of form

AT

O

AT

O

6. Email 2 3. Email 1

7. Email 3

GST at settlement

GST at settlement risk model

• Linked to data submitted via the two online forms

• Comparing property sales against BAS labels

Common errors identified

• Not lodging the BAS

• Lodging the BAS but not reporting the property transaction

• Incorrectly reporting the property transaction (eg Confusion on eligibility to

use the margin scheme and how it is calculated)

• Incorrectly including the withholding amount on the BAS

• A credit has been allocated to one entity but the property reported on the

BAS on another entity


GST at settlement

Risk Identification and Common Errors

During 2018-19

o Approximately 50,000 property

transactions

o Approximately 10,500

suppliers

o The average number of

properties sold by these

suppliers is 5, but the median

is 2 (given the higher volume

from larger suppliers)

Lodgment Channel % of BAS

lodgment

ATO Online* – lodgements via ATO

Online or the portals 63%

Standard Business Reporting - bulk

lodgment by registered agents using

SBR-enabled software

8%

Standard Business Reporting - single

lodgment using SBR-enabled

commercially available software

8%

Web services/Standard Business

Reporting – lodged using SBR-

enabled software via portal channel.

8%

Other (including paper) 13%

*Note – some clients may manage their transactions in software

but lodge via ATO Online channels


GST at settlement

Property data

Received interest to provide access to the GST property credit account

o Currently viewable via online services for individuals & sole traders, online

services for agents and the business portal

o This would require a wholesale API (being considered internally)

Provide access to information on GST at settlement

o Link to ATO webpages

o Guidance on how to record these property transactions in your software

o Potentially link to guidance on an association webpage


GST at settlement

Software providers

56

Web information

• GST at settlement ato.gov.au/gstatsettlement

o GST at settlement – a guide for purchasers and their representatives

o GST at settlement – a guide for suppliers and their representatives

• GST property settlement online forms and instructions ato.gov.au/gstpropertyforms

• Law Companion Ruling LCR 2018/4

Other

• Podcast on our podcast channel Tax InVoice (search QC54552)

• Recorded webinars are available at tv.ato.gov.au

GST at settlement

Additional information


Activity Statement Changes Presented by:

Michael Karavas

Superannuation and Employer Obligations

Change advice – Personal income tax Presented by:

Ross Barns

Director, Individuals & Intermediaries

CA 2020-206| PERSONAL INCOME TAX - Ensuring individuals meet their tax obligations

Presented by: Ross Barns Work summary:

The granular design for PLS seeks more detailed line item information to be provided to the ATO when completing IITRs. This information includes descriptive elements for the amounts that make up the totals provided as part of tax agent lodgments.

• Tax Time 2019 saw the introduction of the granular data Deductions schedule (aligning with the associated form design).

The delivery schedule for the remaining granular products is:

• Multi Property Rental Schedule - Tax Time 2020; available for build now

• 2020 Disable Single Property Rental Schedule for IITR only - it will still be available for NITR

• Income Schedule - Tax Time 2020

• CGT Schedule - Tax Time 2020; little to no impact for DSPs/ tax agents

• NRFI Schedule - Tax Time 2020; little to no impact for DSPs/ tax agents

• 2019 Copy of Return service (LDG.Get) - including granular deductions data - expected to be available for build in December 2019

• 2020 Copy of Return service (LDG.Get) - including granular deductions, income, multi-property rental, CGT and NRFI data - expected to be available for build in October 2020

60

PRODUCTS

• PLS


Granular Journey – What’s next Real-time Analytics – Over to you The future for Substantiation


18Q4 19Q3 19Q2 19Q1 19Q4 20Q1 20Q2 20Q3 20Q4

So

ftw

are

Serv

ices

Deliv

era

ble

s

Deductions Schedule Dec 2018

Released to DSPs Production Release

Multi Property Rental Schedule

Feb 2019

Deductions Schedule Multi Property Rental

Schedule

Copy of Individual Tax Return (including

Deductions granular data only)

Income Schedule

Income Schedule Multi Property

Rental Schedule

Internal ATO changes only

CGT Schedule NRFI Schedule

Copy of Individual Tax Return (including

Deductions granular data only)

Target dates for the iterative delivery of functionality to support the collection of granular data via PLS and enhance the client experience.

Progressive release of consultation

documents

GRANULAR DATA FOR PLS – ROAD MAP

Copy of Individual Tax Return

(including all granular data) Copy of Individual

Tax Return (including all

granular data)


Deductions Schedule

Overall a fantastic effort by all DSP’s but not without challenges

3.3m 2019 schedules lodged by Tax Agents with approx 15m granular transactions

There are issues that are being dealt with specifically in relation:

Blank descriptions

92% of transactional information for D1 – D15 has granular description data of some degree mostly of good quality.

Use of Schedule W expense codes as a replacement for actual expense descriptions

Focused with only 2 DSP’s – for one over 17% of their work related deduction descriptions (mostly D5) are impacted

D01 D02 D04 D05 D07 D08 D09 D10 D14 D15 Grand Total

11% 1% 2% 0% 4% 3% 5% 7% 14% 0% 3%

33% 1% 3% 1% 2% 1% 2% 3% 0% 2% 4%

98% 2% 9% 0% 12% 46% 10% 99% 83% 97% 37%

18% 19% 60% 24% 0% 0% 0% 10% 0% 0% 18%

82% 1% 1% 1% 0% 0% 0% 71% 0% 0% 19%

5% 95% 11% 68% 0% 0% 0% 7% 0% 3% 46%

26% 1% 3% 1% 11% 4% 4% 14% 0% 16% 7%

100% 75% 0% 71% 0% 0% 0% 50% 0% 0% 71%

3% 1% 1% 3% 4% 1% 2% 3% 0% 1% 3%

9% 9% 4% 5% 6% 13% 9% 14% 0% 0% 8%

30% 3% 1% 1% 7% 2% 7% 7% 2% 0% 5%

94% 1% 2% 1% 0% 0% 0% 12% 0% 0% 12%

45% 0% 0% 0% 1% 0% 0% 0% 0% 0% 4%

6% 4% 5% 2% 8% 2% 3% 2% 3% 0% 2%

0% 98% 95% 98% 0% 0% 5% 11% 9% 1% 60%

26% 32% 81% 20% 0% 0% 0% 1% 0% 0% 16%

15% 1% 1% 1% 12% 1% 2% 4% 0% 0% 3%

1% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%

76% 81% 3% 1% 0% 33% 1% 66% 0% 6% 24%

Grand Total 19% 9% 6% 7% 7% 2% 4% 10% 3% 2% 8%

Dig

ital

Ser

vice

Pro

vid

ers


DEDUCTIONS SCHEDULE

Incorrect calculations and information relating to claims for self-education

Msg Title Msg Description Msg Detail Percentage

Msg1 Calculation correct or within rounding boundaries Claim within $2 of calculated outcome 55.98%

There has been no declaration of values for categories that impact the S82A

adjustment thus Category A has not been reduced by the S82A reduction.

Category E has been reported as $250 (with no other values reported that

impact the S82A adjustment). However the value claimed at D4 is $250

more than the sum of deductible values. There has been an over claim by

the Tax Agent.

There has only been a value reported at category A (less than $250) and

there are no declaration of values for categories that impact the S82A

adjustment that would negate the D4 claim. However the Tax Agent has

claimed the value reported for Category A.

The values for categories that impact the S82A adjustment are >=250 which

negates the reduction for S82A. However the Tax Agent has subsequently

reduced the D4 claim by $250.

The Tax Agent has reflected the same car at both D1 and D4. The full value of

5,000 km ($3,400) is reflected at D4 but the calculated value included for D4

represents the difference between the max claim of $3400 – the D1 claim.

This is not an error of calculation but of information disclosure at D4. Some

cases reflect the D1 claim at D2 and others have multiple vehicles.

This is a comparable issue to Msg10 with the Car km reflected at D4 less than

$5,000. There are a range of issues relating to the incorrect calculation of D4

relating to the motor vehicle car expenses.

Msg12 Unresolved Unable to assess the issues associated with these cases 2.65%

Total

41.37%

Msg10Likely incorrect reporting of cents per km between D1 and D4 given

5000 km reported at D40.20%

Msg11Likely incorrect reporting of cents per km between D1 and D4 but not

clear1.42%

Msg6 No application of the S82A $250 reduction and expense <= $250 6.09%

Msg9 S82A $250 incorrectly reduced where CDE exceeds reduction amount 1.20%

Msg2 No application of the S82A reduction 32.43%

Msg5 Reported Cat_E but no application of the S82A $250 reduction 0.03%

Data quality is a key issue as it impacts the ability of a client to move within and across channels with a particular impact on

the copy of return service.


Rental Multi-Property Schedule

Service delivered in February 2019

Capital Gains Tax (CGT) Schedule

No change to the current specifications relating to the CGT Schedule for DSPs with the exception of :

– 4 fields are no longer required and should have been removed as part of the Transfer Balance Cap – Transitional

CGT Relief (Realisation). These are:

* Whilst there will be no change to the MST, DSPs will be advised via the release notes that these are no longer

required to be transmitted

Non-resident Foreign Income (NRFI) Schedule

No change to the current specifications relating to the Non-resident Foreign Income Schedule for DSPs.

Have you chosen to apply the transitional CGT relief for superannuation funds?

Previous have you chosen to apply the transitional CGT relief for superannuation funds?

Notional capital gain amount deferred

Previous notional capital gain amount deferred

Schedules to be delivered / implemented during 2019/20

65 UNCLASSIFIED – Services for Tax Practitioners Day 2 65

Issues raised at the Sydney Forum:

The design will be aligned with the ATO’s integrated core processing system requirements.

An initial spreadsheet has been published to https://softwaredevelopers.ato.gov.au/IITRgranulardataincomeschedule and an

email sent to the DSPs that attended the workshop on 31/08/2019 in Sydney. An alert has been posted to the PLS working

group “Latest news” section for the other IITR developers so they can also access the spreadsheet. A link was also provided in

the DSP Newsletter on 11 September under Website updates.

Feedback to be provide back to your DPO Account Managers by 27th September who will provide it to the Project team for

consolidation and review. Based on this information further forums will be established to advance conversations in October.

Progressive release of the components of the MST and associated validation rules from mid-October.

There will only be one MST for Income Schedule (i.e. the components will not be split into multiple schedules).

Details to support the development of the schedule will be integrated into the BIG rather than delivering a separate Q&A

Solution.

The Non-individual PAYG Payment Summary Schedule details will be integrated within the new schedule. Therefore the current

PSS schedule will not be required from TT2020.

Income Schedule


https://softwaredevelopers.ato.gov.au/IITRgranulardataincomeschedule

https://softwaredevelopers.ato.gov.au/PLS

Items moving from IITR Main Form

Some elements will move from the IITR Main form to the NEW Income details schedule (INCDTLS)

eg. those elements that previously had repeatable groups on the main form such as “Salary or wages payment

summaries”

‘Totals’ for the items that are moving from the IITR Main form to the NEW Income schedule will remain on the Main form.

Where a total field does not exist one will be established

Groups moving from IITR Main Form:

New repeatable groups for the Income Schedule

67

Income Schedule


2017 – is available but fields are limited to those that contribute to the assessment.

2018 – as per discussions at the Sydney Conference no service will be delivered to enable resources to be allocated to

the development of the 2019 service and beyond.

2019 – currently scheduled for deployment in Q4 (December 2019). The request will deliver an XML message containing

the field values of a lodged IITR including deduction granular data (for the 2018-19 financial year) lodged through any

channel.

2020 – Currently scheduled for deployment in Q4 (October 2020). The request will deliver an XML message containing

the field values of a lodged IITR including income, deductions, rental multi-property, capital gains and NRFI.

Future Services – will be scheduled for delivery at the commencement of Q4 in the relevant year.

68

Copy of Return Service (LDG.Get)


What is RTA (IITR Profile Compare)?

Real-time analytics (RTA)

Early evaluation of 2018 work-

related expense claims indicates a

reduction for the first time in 20

years, suggesting a positive impact.

Real-time analytics is a tailored, pre-lodgment messaging

service operating in myTax since 2016, and in PLS since

December 2018.

This service was built in response to requests from tax

agents, who wanted an equivalent service.

It provides tax agents with real-time messages about

income and deductions that might be incorrect, to assist

them to better understand the risk profile of the individual

income tax return they are preparing.

Now in production and available for

use by Digital Service Providers

Search for ‘IITRPRFL’ (IITR profile compare)

on www.sbr.gov.au

DSPs provide access to the RTA service through their

software

Tax agents choose whether to call the service for a

client, and when

Risk reviews are available for:

- interest income

- dividend income

- total work-related expenses

- cost of managing tax affairs – other expenses

- other deductions – other (D15J)

- rental interest

Where received, messages prompt to check label

values before lodging

Designed to support tax agents in the return

preparation process with individuals clients; usage

will be monitored

How does it work?

Examples of current real time messaging

You have declared less than $1 in interest income. Your

last return showed $547 in interest. Please check that you

have included all your income for this year.

Your total work-related expenses of $26,488 are high

compared to others in your occupation with similar income.

Please review these amounts, particularly your claims for

car, travel, uniform, self-education and other deductions.

(Occupation: Pharmacist - retail)

Your other deductions claim of $4,227 appears high

compared to your income. Remember: you cannot claim

for private expenses. Please review your claims and keep

your records as we may ask for them.

Tax agents are hearing about RTA through their professional

associations, and we are planning some awareness

activities for later this year.


Founded on the outcomes of the Individuals Not in Business Tax Gap – $18.6b.

Currently developing our submissions for Government consideration – Tax Time 2021 initiative.

Design Principals

We are committed to co-designing the solution such that it integrates within the natural designs of the business

management systems used by Tax Agents

Limit unnecessary enquiries through applying effective assessments of a clients risk using current and historical profiles and

leveraging granular information provided as part of the IITR

Leverage current digital solutions (such as Real-time Analytics) as part of the end-to-end solution

Future solution designs

Will enable the provision of additional information that supports a clients claim for deductions as well as supporting

evidentiary documentation through electronic channels

Will facilitate information to be requested either at lodgment or as part of post lodgment / assessment reviews

Will provide transparency for both Tax Agents and taxpayers as to the information provided as part of the review

Where appropriate greater levels of automation and analytics will be integrated into the design to streamline the service for

clients and their representatives.

70

Substantiation


71

Questions


Real-time analytics for non-individuals Presented by:

Matt Williams

Director, Black economy

Activity Statement Financial Processing

Presented by:

Chris Rock

Director, Application Architecture & Design

Communication preferences Presented by:

Mark Ayers

Director, Strategy and planning

Service Strategy and Assurance

DIGITAL COMMUNICATIONS & OUTBOUND PROGRAM

(Preferencing)


76

What is Preferencing?

• The ability for a client, or their agent, to tell us who we should direct outbound communications. Preferencing is the ability for a client to direct communications from the Commissioner to specific address and channel

• It enables a client, via their agent, to determine who receives the ‘push’ notification alerting them correspondence has been delivered.

• For digital delivery, this is a digital ‘push notification’ sent to a secure mailbox.

• For paper delivery, this is the paper letter sent to a postal address.



77

Why Do We Need Preferencing?

Paper is often the only option

Currently, 56% (57 m) of our total outbound correspondence goes out via paper.

60% (33 m) of that total paper correspondence is actually ‘digitally-enabled’ but cannot be sent digitally as no secure digital mailbox exists for tax agents and non-

individuals, and we cannot choose where to serve it.

We need visibility of where our remaining 40% of paper correspondence is going, and also provide an option to send it to different postal addresses.

1

myGov defaults notifications to the client Tax agents have expressed their irritations in situations where a clients myGov account linked to the ATO, and they by default receive notification of all digitally

enabled correspondence to their myGov inbox (as per myGov T&Cs, this is deemed to be their preferred address for service).

2

Communications List (CCL) – doesn’t include everything, and doesn’t ‘notify’

The CCL portal service does not provide agents with a view of non digitally-enabled correspondence (i.e. the 40%). It does however provide a view of all digitally-enabled correspondence (irrespective of whether it is sent digitally or not).

The CCL is a ‘pull’ service, as opposed to a ‘push’ service. This means that agents don’t receive a notification alerting them of new items, requiring them to manually search the list.

3

4 To increase digital enablement of correspondence 6m pieces of correspondence can not be delivered to a myGov in box but is viewable within ATO Online if the client is linked. A client does not receive a digital

notification of this.



78

Home Page – Client Mail Feature

The Client mail feature on your homepage will indicate whether there are unread client communications

The number of unread pieces of client communications is displayed



79

The Solution - Applying Default Preferences for the Practice

1. Set preferences for your practice

2. Confirm authority in writing

from the client

3. Set client preferences

4. ATO issues communication

5. View client communications



80

The Solution - Applying Preferences to the Client



81

The Solution - Applying Bulk Preferences to the Client

81



82

Phase 1 Experience for Agents – Send to Practice

Opens Agent inbox and reads mail

Continues to be viewable in communication history (CCL)

ATO Sends documents to Online Services for

Agents

AGENT

No longer receives message in myGov inbox.

Can view correspondence in ATO Online via communication history.

myGov CLIENT

NOA

Send to Practice

Will not issue via paper as its issued to the agent digitally as per preference set

Non myGov CLIENT

• Templates not available for preferencing will be delivered to the postal address on client file.

• For individuals only



83

Phase 1 Experience for Agents – Send to Client

NOA ATO Sends

documents to myGov inbox

(Electronic –no paper issues)

Can see correspondence in communication history (CCL)

Not delivered to agent inbox.

Receives message in myGov inbox

Can also view correspondence in ATO Online via communication history.

ATO AGENT CLIENT

• Templates not available for preferencing will be delivered to the postal address on client file.

• For individuals only.

NOA Sent via paper

to postal address on client file

Can see correspondence in communication history (CCL)

Receives correspondence via paper mail.

myGov Client

NON myGov Client

Agent or Client address on file

Send to Client



84

APIs


PREFERENCING: COMMPREF.SUBMIT - Maintain client/default preferences

This service allows an initiating party who has the correct level of authorisation with the ATO to maintain the specific client communication preferences and agents default preferences

PREFERENCING: COMMPREF.GET - View client/agent default preferences

This service allows an initiating party who has the correct level of authorisation with the ATO to view their own or a client ’s Client Channel Preferences

PREFERENCING: COMMPREF.LIST - List client/agent preferences

This service allows initiating party who has the correct level of authorisation with the ATO to create a list of clients with preferences

CLIENT COMMUNICTATION: LIST - List client correspondence

This service allows a registered agent to request and retrieve a historical record of client communications for a single client, multiple clients or all clients

CLIENT COMMUNICATION: GET - Retrieve client correspondence

This service allows a registered agent to retrieve a specific client communication item

HTTP API services are being developed to support communication preferencing.

Company tax return instructions Presented by:

Dimce Ristevski

PGI New measures

Online Services for DSPs Presented by:

Sharna Maltman

Director, Digital Partnership Office

Created vs resolved

requests

Stream* Created Resolved

Technical support 4,918 4,302

Operational

Framework

213 111

Total 5,131 4,413

*Consultation and engagement ticket types have

recently also been added.

Phase 1 (registration & profile management)

• Received by DPO: 542

Phase 2 (analyse, design, build, test)

• Received by DPO: 1,609

Phase 3 (PVT)


Phase 4 (production support)

• Received by DPO: 1,830

Not phase-related


Resolved by DPO vs escalated requests

18 DSPs on-boarded during August 2019

On-boarding to Online services for DSPs

372 554 Registered

DSPs

Registered

contacts


Online Services for DSPs | WHO IS USING THE TOOL AND HOW OFTEN -

SEPTEMBER 2018 – NOW


Online Services for DSPs | JIRA IMPROVEMENT BACKLOG


Online Services for DSPs | NEW TICKET TYPES

What’s coming next…

Feedback & questions

services for tax practitioners day 2 · agenda|day two 2 welcome reasonable use of services...

Documents