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The ATO has outlined its plans for the future, which include increased automation and a standard chart of accounts.
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A standard chart of accounts is coming, says the ATO
03 June 2015
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8 minute read
ATO deputy commissioner Steve Vesperman, who spoke last week at the IPA’s Tasmanian Congress, said the tax office is currently working on a number of projects aimed at increasing efficiency in the tax system.
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Looking beyond 2016, Mr Vesperman highlighted developing a standard chart of accounts as a focus for the tax office. He said it is important in cutting red tape in record-keeping and streamlining the tax obligations of small businesses.
“The bottom line here is to reduce the need for the manual intervention and therefore the compliance costs in terms of meeting the more straightforward obligations,” he said.
Mr Vesperman dismissed concerns a standard chart of accounts is not feasible given Australia’s complex tax system, insisting improving technology will make the prospect a reality in the not too distant future.
“You can use technology to do a whole variety of things; we need to do it progressively but we need to have this vision – that’s what we are trying to achieve and it will happen over time.
“It can happen where you have simple accounting arrangements and simple affairs.
“Then, as you add layers of complexity then it gets that much harder, but there is a real thirst for looking at how can we take the noise that small business has to get involved in, in terms of record-keeping, and how can we help them as much as possible by automating and make it easier for them and make it as seamless as possible for them to meet their obligations," he said.
Mr Vesperman said the ATO wants to work with practitioners to develop a system that works, acknowledging the need for the tax office to collaborate with professionals in order to create a sustainable process and workable chart of accounts.
“We need to, in partnership, shape the future by working together to move in this direction,” he said.
“We're not about dictating that, we are about working together so that all starts to become a reality in a collective way, a collaborative way, rather than just one side painting that picture.”
Finally, Mr Vesperman said the new automated environment will not cost tax professionals revenue, but will change their role, promoting advisory work over compliance services.
“You only need to look at the thirst for information about the Budget measures announcements over the last couple of weeks that showed how much value tax practitioners add to the administration of the tax system,” Mr Vesperman said.
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