Benefits outweigh costs of adviser access to ATO portal

The Australian Taxation Office (ATO) has cited the costs associated with giving financial advisers access to the ATO portal but the benefits are likely to outweigh the costs, according to the Joint Associations Working Group (JAWG).

As well, the advice and accounting groups represented by the JAWG pointed to the fact that the last four disciplinary actions by the Financial Adviser disciplinary body against financial advisers had been based on mistakes relating to superannuation contributions – something which may have been obviated by access to the ATO portal.

In a joint submission filed with Treasury as part of its Review of Tax Regulatory Secrecy exceptions, the JAWG said there are substantial client and busine3ss benefits in enabling financial adviser access to the ATO portal.

It said that financial advisers are recognised in the law as providers of taxation advice (Qualified Tax Relevant Providers) and therefore it is appropriate that they have access to client tax and superannuation data to assist in the provision of this tax advice.

Referring to the ATO’s arguments around costs, the submission made clear there was a need to upgrade the portal, in cany case.

“The cost of ATO system changes has been proposed as a significant hurdle in allowing financial advisers to access the portal. Government funding is already urgently required to address resource constraints within the ATO that are negatively impacting ATO service standards and the ability to use online services for existing tax practitioners,” the submission said.

“Additional funding is needed to improve service standards for existing tax practitioners and to provide financial advisers with access to the portal.”

Pointing to the increasing number of Australians retiring each year and the need for advisers to have access to superannuation fund data to discover all financial, tax, social security information, it said it was of is of relevance to note that three of the last four disciplinary actions by the Financial Adviser disciplinary body against financial advisers have been based upon mistakes with respect to super contributions, where the adviser had failed to understand all existing funds, previous contributions or contribution limits.

“Whilst it is not necessarily the case that access to the ATO Portal would have avoided these mistakes, it is very likely that it would have provided substantial benefit in doing so. The point being, that access to the particularly important information in the ATO Portal plays a critical role in ensuring that the financial advice is both appropriate and compliant, and that risks to consumers are minimised,” the JAWG submission said.