Nominating a tax agent with the Australian Taxation Office (ATO) is an important step for many businesses and organisations that want a qualified professional to manage their tax and super obligations. In Australia, the ATO requires certain entities with an Australian Business Number (ABN) to formally nominate a registered tax agent, BAS agent, or payroll service provider before the agent can access information or act on behalf of the business. This nomination process helps protect sensitive tax information and ensure that only authorised professionals handle your tax affairs. Whether you are engaging a new tax agent or changing the responsibilities of an existing one, understanding the requirements and steps involved in nominating a tax agent with the ATO is essential for effective tax management and compliance.
What It Means to Nominate a Tax Agent
Nominating a tax agent with the ATO means officially authorising a qualified professional to represent you or your business in tax matters. This includes actions like lodging tax returns, managing activity statements, communicating with the ATO about tax obligations, and accessing tax records on your behalf. Under the clienttoagent linking system, your nominated agent must be linked in the ATO’s online services before they can act for you or your entity. This ensures that only the people you choose have access to your tax and superannuation information, enhancing security and reducing the risk of unauthorised access or fraud.
Who Needs to Nominate a Tax Agent?
The requirement to nominate a tax agent currently applies primarily to entities with an ABN. This includes
- Companies
- Partnerships
- Trusts
- Notforprofits
- Joint ventures
- Cooperatives
- Selfmanaged superannuation funds (SMSFs)
- APRAregulated superannuation funds
Sole traders and individual taxpayers are generally not required to use the clienttoagent linking process at this time, though this may change in future as the ATO continues to update its systems and security measures.
Why the ATO Requires Tax Agent Nomination
The ATO has introduced the tax agent nomination process as part of a broader clienttoagent linking system designed to protect taxpayer information and reduce identityrelated fraud. Under this system, an entity must nominate a registered agent before the agent can access the entity’s tax records or lodge documents on its behalf. This safeguards sensitive personal and financial data and gives the client control over who is authorised to act for them. It also ensures that both the client and the agent have clearly documented and authorised relationships, which can reduce misunderstandings and administrative errors.
Security and Privacy Benefits
The nomination process enhances security in several ways
- Only your nominated registered agent can access your tax information in the ATO’s online systems.
- You maintain control over who can act on your behalf.
- The risk of unauthorised access or identity theft related to tax accounts is reduced.
- Registered agents can only act after you have completed the online nomination steps.
This emphasis on security protects both taxpayers and agents and creates a formal framework for authorised access to important tax records.
Steps to Nominate a Tax Agent with the ATO
Nominating a tax agent involves several steps, most of which are completed online through the ATO’s Online services for business portal. The process ensures that the person or organisation nominated has been chosen and approved by the client before any access is granted.
Step 1 Set Up Your Digital Identity
Before you can nominate a tax agent, you need a myGovID, which is the digital identity system used by Australian government services. You can download the myGovID app and set up your digital identity using your personal details and identity documents. There are two levels of identity strength – Standard and Strong – that determine how you link your digital identity to your business.
Step 2 Link Your Digital ID to Your Business
Once you have a myGovID, you must link it to your business’s ABN through the Relationship Authorisation Manager (RAM). This linking allows you to access Online services for business and nominate an agent. If you have a Strong Digital ID, the process can be completed entirely online. Otherwise, you may need to contact support to complete this step.
Step 3 Log In to Online Services for Business
After linking your digital identity to your business, log in to the Online services for business portal. From here, you can manage your profile, view tax details, and nominate an agent. This secure portal is where the nomination process takes place and where you can monitor your agent details once submitted.
Step 4 Submit the Agent Nomination
To nominate a tax agent, you will need your agent’s registered agent number (RAN). In the Online services for business portal
- Go to Profile and select Agent details.
- Choose Add under the Agent nominations section.
- Search for your agent using their RAN.
- Confirm the agent’s details and complete the declaration.
- Submit the nomination.
Once submitted, your nominated agent’s details will appear in your profile, and they will have 28 days to add you as a client on their system. If needed, you can extend the nomination period for another 28 days.
What Happens After Nomination?
After you nominate a tax agent, the agent must add you to their client list in the ATO’s Online services for agents. This final step allows them to act on your behalf for tasks like lodging tax returns, managing obligations, and accessing your tax information. Once added, the agent can perform the authorised services for the accounts you selected during nomination.
Extending or Updating a Nomination
If your agent requires more time to add you as a client after you nominate them, you can use the Extend feature in the Online services for business portal. This adds an extra 28 days to the initial nomination period. If the nomination expires, you will need to submit a new nomination. You can also delete or update an agent nomination at any time through the portal if your circumstances change.
Common Questions and Considerations
There are some common questions that arise around nominating tax agents with the ATO, especially for businesses new to the process.
Can an Agent Nominate Themselves?
No. The client must complete the nomination process themselves. Agents can guide and assist, but they cannot submit the nomination on behalf of the client. This ensures that the client fully controls who is authorised to act on their behalf.
Why Won’t This Apply to Sole Traders Yet?
At present, clienttoagent linking and mandatory agent nomination apply only to entities with an ABN, excluding sole traders. The ATO plans to expand the system more broadly in the future, but consultation will take place before changes that affect individuals and sole traders are implemented.
Benefits of Nominating a Tax Agent
Nominating a registered tax agent with the ATO offers several benefits for businesses and organisations. It allows professionally trained experts to manage complex tax and reporting obligations, reducing the potential for errors or missed deadlines. It also ensures that you have authorised someone you trust to handle sensitive information and represent you in dealings with the ATO. The nomination process enhances data security while giving you control over your tax affairs.
Nominating a tax agent with the Australian Taxation Office is an important part of managing your business’s tax obligations securely and effectively. By formally authorising a registered tax agent through the clienttoagent linking process, you ensure that only trusted professionals can access your tax information and act on your behalf. Knowing who needs to nominate an agent, how to complete the nomination, and what happens after submission helps businesses stay compliant and protected. With clear steps and a structured process, nominating your tax agent can be a straightforward part of responsible tax management for any eligible Australian entity.