Client Agent Linking - Where to from here?

ABA offers advice to minimise CAL friction in light of industry still having a long way to go before small business absorbs the cost of red tape.

Australian Bookkeepers Association (ABA) has emphasised ways to ease the burden of the new Client Agent Linking (CAL) process imposed on BAS Agents.

While significant problems still surrounding the new CAL process are likely to take some time to fix yet, ABA’s Director, Peter Thorp, explains bookkeepers can still be somewhat proactive to minimise the fallout.

CAL counter intuitive to ATO mandate

The CAL objective was to minimise unauthorised linking of small business taxpayers to an agent’s OSfA. The goal was admirable and from all reports is being met by CAL. “However, CAL is an expensive, inefficient process that hinders lodgements, freedom of choice of agents and causes reputational harm,” said Peter. “The reputations of agents and the ATO alike are harmed by a process that is roundly perceived as red tape.

“Agents confirm with us that the first experience of a new client/agent relationship (CAL) is a complex one that wastes time and tests the patience of small business operators.

“It seems clear the CAL process does not fit the ATO 2022-2025 digital strategy,” continued Peter. “The ATO’s promise is to provide digital services that make it easy for clients to engage with them and the ATO is meant to enable streamlined registrations, tax and superannuation to ‘just happen’.”

ATO open to changing over time

“It’s for this reason that the ATO has signalled they’re open to improving the process over time, engaging in discussions with associations like the ABA to address problems,” said Peter.

“We are pleased that our efforts to champion changes to messaging for Tax Agents on the CAL system seems to have dramatically cut the incidence of tax agent delinking of BAS Agents.

“With only a few percent of small business having gone through CAL there is, however, a long way to go before it absorbs the costs of this process.”

Ways to help the pain go away

“Agents will gain some benefit from familiarising themselves with the new CAL process, however it’s primarily a client undertaking,” said Peter. “To minimise the friction bookkeepers can focus on the pain points in CAL.”

Top 3 areas to gain familiarity with:

• Up-to-date Australian Business Register (ABR) – Maintain up to date ABR records to minimise disruption for clients in CAL.?
• Familiarity with ABR/RAM linking and nomination process – A Principal Authority first needs to link their Digital Identity to the client’s Australian Business Number (ABN) through the Relationship Authorisation Manager (RAM). myGovID is the Principal Authority’s Digital Identity credential which is the starting point and must be properly set up before moving to link it with an ABN and enable Online Services. Online Services is the platform for nominating a BAS and tax Agent.

• Understand how you can assist clients get a myGovID – Some clients don’t have a myGovID account that’s linked to their ABN, which is necessary if the client is to complete the CAL process. Where a small business client cannot obtain a myGovID credential with a “Strong” identity strength they will need to contact the ATO.

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To align your business with a key Australian bookkeeper and BAS Agent industry lobby, the ABN invites you to become a member today. Members can access a recent Bookkeeper Radio webcast #139 to improve ABR Linking.