If you are running a business and employ an accountant to handle your finances then the ATO has created a new requirement that will keep your private information, private.
The new method will help to ensure that only your authorized tax agent, BAS agent or payroll service provide can access your accounts. And with cyber crime a constant threat, this is one way you can safeguard your sensitive info.
This process applies when you change an agent or change the authorisations you give your existing agent.
This process is effective from the 13th November and the agent nomination process will apply to a host of entities with an ABN excluding sole traders. Entities included are:
- companies including strata title bodies
- joint ventures
- self-managed super funds (SMSFs)
- APRA-regulated superannuation funds.
This approach by the ATO aims to enhance efficiency and ensure a secure and streamlined experience for both agents and their clients. There will also be a step introduced where the ATO will ask to securely nominate your registered agent when you change:
- to a new registered agent
- the authorisations you give your existing registered agent.
Only when you’ve done this will your registered agent be able to connect to you as their client and access your information. This will minimize the risk of fraudulent activities and reduce the time for onboarding, so tax agents are able to start their work more promptly.
If you need to nominate a registered tax agent to act on your behalf or extend a nomination, head to the ATO to begin the process.