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Your Association at Work - May 2007
Editor: Tony Jones represented the NTAA at the recent CEO's meeting in Brisbane. Matters discussed included the sustainability of the accounting and tax professions and how the ATO is planning to improve the service it provides to tax practitioners.
Sustainability of the accounting and tax professions
The number of professional accountants employed in Australia has increased from around 100,000 in 1995/96 to just over 140,000 in 2005/06.
However, the accounting profession continues to report recruitment difficulties nationally.
The two accounting areas emerging as being in highest demand are taxation (22%) and audit (16%).
The Commissioner of Taxation, Michael D'Ascenzo, suggested to the meeting that in light of the difficulties facing the profession, a joint approach should be made to government and universities to have tax and superannuation added to accounting courses. The CEOs agreed unanimously and will work with the Tax Office on a joint submission.
Practices struggling with their workload and lodgment program
An additional matter that was raised concerned tax agents who are currently struggling with their practices and having difficulty in keeping up with the heavy workload and their lodgment program.
Currently, under the secrecy provisions, the Tax Office cannot approach the professional bodies to seek their assistance with these tax practices. It is also unable to practically recommend how they should change their practice management.
However, the Commissioner asked each of the professional associations whether they were willing to enter into discussions to see if there was any way forward to help these practices.
Responses from the CPAs, ICA and NIA were positive, and Tony Jones indicated that the NTAA was prepared to continue its work with a pilot program of appointing independent tax agents around the country to provide immediate and ongoing support to these practices (Editor: as we did with one member last year).
Tax Practitioner Service Improvement
The Tax Office also provided details of how it was working to improve its service deliverability to tax agents. The following is a snapshot of the challenges it faces and the proposed changes.
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Tax Practitioner outcomes |
Proposed changes |
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Tax Practitioners want the Tax Office to understand and manage local/regional issues |
New models are being designed for engaging with Tax Practitioners operating at the coal-face. This will include, for example, more flexible and less formal methods of consultation and co-design, reaching out in particular to practitioners at the coal-face in regional areas. Revitalisation of Regional Tax Practitioner Forums. Introduction of an Area Senior Representative role. Tax Office Senior Representatives have been appointed in the pilot areas of North Queensland and Tasmania. A Senior Representative is also available in the Melbourne area. Tax agents in these areas will be advised by letter. |
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Tax Practitioners want more effective, reliable and targeted technical advice services |
The Tax Agent Capability Project elements proposed for inclusion in a proposed pilot program are:
Note: All of the above are in the initial stages of design. Tax Office core design teams were set up for the first time in April and will progress to the co-design phase with practitioners in May. Prototype testing is scheduled for July 2007. Final service models will depend on the success of the prototypes and the technology that supports the initiatives. |
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Tax Practitioners want improved service responses |
More timely resolution of escalated cases that have not met Taxpayer Charter standards.
Enhancements to Relationship Management services including field operations and practice support are being designed. Enhancements to lodgment and deferral support – the ATO intends to review the online method of deferral to identify its effectiveness and create further enhancements. |
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