The ATO Agent Nomination Process: Client Linking: Safeguarding Your Business Against Fraud and Scams
As the landscape of digital security evolves, the Australian Taxation Office (ATO) has introduced a crucial update to the agent nomination process, effective from 13 November 2023. This update impacts all businesses with an Australian Business Number (ABN), except sole traders, and is designed to enhance the security of tax and superannuation information by ensuring that only authorised agents can access and manage your business affairs.
Understanding the New Agent Nomination Process
The ATO’s new agent nomination process is a critical security measure aimed at combating the rising threat of identity theft and fraud. This process is mandatory when you appoint a new tax agent or update the authorisations for your existing agent. It applies to a variety of entities, including:
Companies, including strata title bodies
Partnerships
Trusts
Not-for-profits
Joint ventures
Cooperatives
Self-Managed Super Funds (SMSFs)
APRA-regulated superannuation funds
By requiring secure nomination of tax agents, BAS agents, or payroll service providers, the ATO ensures that activities like tax return lodgments and superannuation information management are conducted only by those you’ve authorised.
What Business Owners Need to Know
When you’re ready to bring on a new registered tax or BAS agent or update the authorisation for your current agent, the ATO mandates a specific nomination process through Online Services for Business. This step is essential to granting your agent legitimate access to your accounts, allowing them to accurately represent your tax and superannuation affairs.
Steps to Nominate Your Agent:
Nominate Your Agent:
Begin by nominating your registered agent via Online Services for Business. This is a prerequisite for them to access your account and act on your behalf.Follow the Process:
The ATO provides a detailed client-to-agent linking guide to walk you through the nomination process and assist you in setting up Online Services for Business if you haven’t already done so.Seek Assistance if Needed:
While your agent cannot complete the nomination on your behalf online, they can guide you through the process. For additional help, you can contact the ATO directly or seek support from your registered agent.Notify Your Agent:
After submitting your nomination, notify your agent. They have 28 calendar days to add your business as a client before the nomination expires. Note that the ATO does not send automated notifications to your agent.Extend Your Nomination:
If your agent requires more time to add you as a client, use the “Extend” feature in Online Services for Business to add 28 days to your nomination. This option is available the day after your initial submission and remains accessible until the original 28-day period expires. Once expired, a new nomination must be submitted.
Linking Your Agent to Your Business
The Client-to-Agent linking process is mandatory for all businesses when appointing a new tax or BAS agent, or when providing additional authorisation to an existing agent. This ensures your business complies with the latest ATO regulations and maintains the integrity of your financial and tax-related activities.
Important Considerations:
This process is required if you’re appointing a new tax or BAS agent or payroll service provider.
Your agent can guide you through the process but cannot complete it on your behalf.
Getting Started with Online Services for Business
Before nominating an agent, ensure you have access to the ATO’s Online Services for Business. If you’re the principal authority of your business, your first step is to set up your Digital ID through the myGovID app. Depending on your available documents, you can opt for:
Strong myGovID: By verifying your Australian passport and either your birth certificate, citizenship certificate, driver’s licence, or Medicare card.
Standard myGovID: By verifying two Australian identity documents.
Remember, your myGovID is personal and should not be shared.
Linking Your myGovID to Your ABN:
Once your myGovID is set up, link it to your Australian Business Number (ABN) using the Relationship Authorisation Manager (RAM). If you have a Strong myGovID, this step is straightforward. However, if you have a Standard myGovID or are a primary person not listed as an individual associate in the Australian Business Register, you’ll need to contact the ATO directly for assistance.
Nominate Your Authorised Agent
With access to Online Services for Business, you can now nominate your authorised agent following the steps outlined in this guide.
The ATO’s new agent nomination process is a significant step toward enhancing the security of Australia’s tax and super systems. By staying informed and proactive, you can ensure that your business or SMSF navigates these changes smoothly.
For personalised assistance and expert advice on complying with these new requirements, Camtech & Slater is here to be your trusted partner. Contact us today to get started.