Starting from November 13th, 2023, a significant change is coming into effect for businesses in Australia. The Australian Taxation Office (ATO) is introducing a new client-to-agent linking nomination process. This change impacts all businesses holding an Australian Business Number (ABN), excluding sole traders, when:
Appointing or replacing a Tax or BAS agent.
Adjusting authorisations for an existing agent.
Working with a payroll service provider.
Why the Change?
The main reason for this new process is to enhance security and protect businesses from fraud and identity theft. By ensuring that only authorised tax agents, BAS agents, or payroll service providers can access your information and act on your behalf, the ATO aims to safeguard your tax and super affairs more effectively.
As your registered tax agent, we can’t complete the agent nomination process for you - only you can do that. However, we have provided step-by-step instructions in this article to guide you through the process.
Step-by-Step Guide for Client-to-Agent Linking
Step 1: Register for myGovID
Before anything else, businesses need to set up a Digital Identity through myGovID and link it to their business ABN.
We have provided detailed instructions in our blog article How to set up myGovID and RAM. [https://www.accountingadvice.com.au/blog/post/10386/how-to-set-up-mygovid-and-ram-a-step-by-step-guide/]
Step 2: Set up Relationship Authorisation Manager (RAM)
After setting up myGovID, you will need to link it to your Relationship Authorisation Manager (RAM). RAM enables users to manage authorisations and relationships for business, BAS, and agent services.
We have provided detailed instructions in our blog article How to set up myGovID and RAM.
Step 3: Log in to ATO’s Online Services
Use your myGovID to log in to Online services for Business so that you can manage Client-to-Agent linking.
Step 4: Nominate Your Authorised Agent [Accountant/Tax Agent] in Online Services for Business
Once you have logged into ATO Online Services for Business, you can use the Agent Nomination feature. You will need to provide your chosen agent's registered agent number (RAN) and practice name.
At the Agent nominations feature, select Add.
On the Nominate agent screen, go to Search for agent.
Type your agent’s (or payroll service provider’s) RAN or practice name and select Search.
Select the agent you want to nominate (if multiple results are returned, select the correct agent).
Check that the agent’s details are correct.
Complete the Declaration.
Select Submit. Enter your agent’s registered agent number (RAN) or practice name for this step. Confirm the authorisation request.
Advise the nominated agent that you have completed the nomination process at the ATO.
Step 5: Notify Your Agent
It’s important to note that your agent will not receive an automatic notification. You, as the business owner, must inform your agent, who then has 28 days to action the nomination before it expires.
Step 6: Confirmation and Completion
Once your nominated agent accepts your nomination, the linking process is complete.
For more detailed guidance and assistance with the new ATO client-to-agent linking nomination process, please feel free to contact us at Tax Accounting Advice Pty Ltd. Our team is here to help ensure your business remains compliant and secure.
For further information, visit the ATO website.