How to nominate your BAS and IAS Agent

If you are a business owner or an entity with an ABN, you may need to nominate your agent for your tax affairs. This is a new requirement from the Australian Taxation Office (ATO) that aims to enhance the security of your information and ensure that only your authorised agent can access your accounts and act on your behalf.

In this blog post, we will explain what the agent nomination process is, why it is important, when you need to do it, and how you can complete it easily.

WHAT is the tax agent nomination process?

The agent nomination process is a step that you need to take when you change to a new agent or change the authorisations you give your existing agent. An agent can be a tax agent, a BAS agent, or a payroll service provider who is registered with the Tax Practitioners Board (TPB).

By completing the agent nomination process, you are securely confirming that you want your agent to represent you for your tax and super affairs. This will allow your agent to connect to you as their client in the ATO’s online services and access your information.

The agent nomination process only applies to entities with an ABN, excluding sole traders. This includes entity types such as:

• companies, including strata title bodies
• partnerships
• trusts
• not-for-profits
• joint ventures
• cooperatives
• self-managed super funds (SMSFs)
• APRA-regulated superannuation funds.

The agent nomination process does not currently apply to individual taxpayers or sole traders.

WHY is the nomination process important?

Hint – it’s to keep your company data safe – only those you nominate personally will be able to see your data

The ATO is making this change to protect your tax and super information from identity theft and fraud. The security and fraud environment is constantly evolving and the ATO is taking proactive measures to strengthen the security of their online services.

By nominating your agent, you can have confidence that only your authorised agent will have access to your information and perform tasks on your behalf, such as lodging your tax return or activity statement. Your agent can also be confident that they are dealing with you and not someone pretending to be you.

The agent nomination process will also help the ATO to verify your identity and your relationship with your agent. This will reduce the risk of errors and delays in processing your tax and super obligations.

WHEN do you need to complete the nomination process?

Hint – it’s only when you start a new agent relationship

You need to complete the agent nomination process when you change to a new agent or change the authorisations you give your existing agent. For example, if you want your agent to represent you for income tax, you need to nominate them for the income tax account. If you want them to represent you for activity statements, you need to nominate them for the activity statement account.

You do not need to complete the agent nomination process if you are not changing your agent or your authorisations. For example, if you already have an agent who is authorised for your income tax and activity statement accounts, and you are not changing anything, you do not need to nominate them again.

The agent nomination process is effective from 13 November 2023 for all types of entities with an ABN, excluding sole traders. The ATO has already rolled out the agent nomination process to some specific groups of businesses, such as public and multinational businesses, privately-owned wealthy groups, and government entities.

HOW can you complete the tax agent nomination process easily?

Hint – it’s all in your ATO online business portal

The agent nomination process is simple and can be done online through the ATO’s Online services for business. You will need a myGovID to log in to Online services for business. A myGovID is a digital identity that proves who you are online. You can set up your myGovID using the myGovID app on your smart device.

To complete the agent nomination process, you will need to follow these steps:

1. Log in to Online services for business using your myGovID.
2. Select Profile, then Agent details.
3. At the Agent nominations feature, select Add.
4. On the Nominate agent screen, go to Search for agent.
5. Type your agent’s registered agent number (RAN) or practice name and select Search.
6. Select the agent you want to nominate.
7. Choose the accounts or roles you want to authorise your agent for, such as income tax or activity statement.
8. Review and confirm your nomination details.
9. Select Submit.

You will receive a confirmation message that your nomination has been submitted. Your agent will also receive a notification that you have nominated them. Your agent will then be able to add you to their client list and access your information.

You can view, edit, or cancel your agent nominations at any time through Online services for business. You can also nominate more than one agent for different accounts or roles, as long as they do not overlap.

Conclusion

The agent nomination process is a new requirement from the ATO that helps to secure your tax and super information and ensure that only your authorised agent can access your accounts and act on your behalf. You need to complete the agent nomination process when you change to a new agent or change the authorisations you give your existing agent. You can complete the agent nomination process easily online through Online services for business using your myGovID. By nominating your agent, you can have peace of mind that your tax and super affairs are in good hands.

If you have any questions or feedback, please leave a comment below or contact us.