Hey guys, Nathan here.
I want to take some time to guide you through an update from the Australian Taxation Office (ATO) that could impact your business – the Agent Nomination Process.
So, Let’s Go!
1. What is nominating NGR Accounting as your Agent all about:
The agent nomination process is a new requirement to ensure only your authorised tax agent (in your case, the team at NGR Accounting), BAS agent, or payroll service provider can access your accounts and act on your behalf for your tax and superannuation affairs.
This process applies when you change an agent or alter the authorisations you give your existing agent.
2. How Do You Know If This Process Applies to You?
Navigating through the criteria is crucial to determine if the agent nomination process applies to your business.
As of November 13, 2023, the ATO has expanded this process to encompass all types of entities with an ABN, excluding sole traders. This inclusive approach extends to various entity types, including:
- Companies, including strata title bodies.
- Partnerships
- Trusts
- Not-for-profits.
- Joint ventures.
- Cooperatives
- Self-managed super funds (SMSFs).
- APRA-regulated Superannuation Funds
Additionally, the ATO had already rolled out the agent nomination process to these specific categories:
- Public and multinational businesses included in 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.
If your business falls under any of these above-mentioned categories, it’s time to set up the agent nomination process.
This move ensures that NGR Accounting becomes your designated representative, facilitating smooth interactions between yourself, the team at NGR and with the ATO.
3. Why Did the ATO Make This Change?
Understanding the motivation behind the ATO’s decision to implement the agent nomination process is crucial.
The ATO introduced this change to address the evolving security and fraud landscape, which poses increasing risks of identity theft and fraud.
Enhanced Security Measures: The ATO is committed to the security of your tax and super information. Given the shifting security and fraud environment, the change aims to strengthen the security of online services. This is particularly important as there are growing attempts to commit identity theft and fraud.
Protecting Your Information: Registered agents play a vital role in managing your tax information and lodging returns on your behalf. The new process ensures that only your nominated agent will have access to your information and can perform tasks on your behalf. This step adds an extra layer of protection to safeguard your sensitive data.
Interactive and Secure Process: The ATO is introducing a step in which you securely nominate your registered agent when changing to a new registered agent or updating authorisations. This process, done through online services, enhances the interactive and secure nature of the relationship between you, your nominated agent, and the ATO.
Mutual Confidence: By completing the agent nomination process, your registered agent can be confident that they are interacting with you, and the ATO can be confident that the actions taken by your registered agent are genuinely on your behalf. This mutual confidence is vital for the integrity of the tax and super information exchange.
In consultation with businesses, agents, and industry representatives, the ATO is actively considering taxpayer and agent needs to ensure a smooth and effective implementation of this enhanced security measure.
4. When Should You Complete This Process?
Determining the right time to complete the agent nomination process is essential for a seamless experience. Here’s when you should consider taking this step:
Engaging a New Partner:
- If you’re bringing on board a new registered tax or BAS agent, like NGR Accounting.
- If you’re partnering with a new payroll service provider to represent you.
Changing Authorisations:
- If there’s a change in the authorisations from an existing agent to NGR Accounting.
- For instance, if we start representing you for a new obligation, such as income tax or a new entity in your business group.
Status Quo? No Action Needed:
- If you’re already represented by an agent from NGR Accounting and there are no changes in your representation details, there’s no need to take any additional action.
Completing the agent nomination process is a proactive step to ensure that NGR Accounting remains your designated representative for all tax-related matters. It’s a straightforward process that ensures our representation aligns seamlessly with your evolving business needs.
5. What You Need to Do:
Now that you understand the ins and outs of the agent nomination process, let’s dive into what you need to do to ensure a smooth transition to NGR Accounting as your designated representative.
Nominate Your Agent Online:
- You need to nominate NGR Accounting as your registered agent in Online services for business before we can access your account and act on your behalf.
Follow the Client-to-Agent Linking Steps:
- To nominate us, follow the client-to-agent linking steps. These will guide you through the nomination process and assist in setting up Online services for business if you haven’t done so already.
Need Support? The ATO has assistance:
- If you require assistance during this process, the ATO is here to help. You can reach out to them at 13 28 66, or directly contact your registered agent. While the ATO cannot complete the agent nomination process on your behalf in online services, they can offer guidance on the necessary steps you need to take.
Taking these steps diligently will not only facilitate a seamless agent nomination process but also ensure that NGR Accounting can continue supporting you effectively in all tax-related matters.
6. Notifying Your NGR Accounting Agent:
Once you’ve successfully submitted your nomination, it’s time to take the next proactive step and inform your designated agent at NGR Accounting. This ensures a swift transition and allows us to promptly add your business or organisation as a client or include any additional tax accounts.
Timely Notification is Crucial:
- Your nomination gives us 28 calendar days to officially add you as a client. To ensure a smooth process, it’s crucial that you notify us promptly after you’ve submitted the nomination.
No Automated System Notification:
- Unlike automated notifications, your nominated agent, in this case, NGR Accounting, won’t receive an automatic alert about the nomination. Therefore, your timely advice is essential to initiate the next steps.
By notifying your designated agent promptly, you contribute to a seamless transition, allowing NGR Accounting to efficiently manage your tax-related matters. Your cooperation is appreciated as we work together to ensure a smooth and effective representation.
Of course, if you have any questions, or want to check if this is something that you need to complete, please feel free to contact the team at NGR Accounting on 02 9011 6669, or email us at info@ngraccounting.com.au.
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UPDATED: 12th January, 2024
JM
