The way Australian businesses interact with the Australian Taxation Office (ATO) continues to change.

More tax and business services are being managed online, while the ATO continues to strengthen the security of its digital systems and the way taxpayers and registered agents access information.

For business owners, many of these developments happen behind the scenes. However, they can affect how you authorise your accountant, manage access to your tax information and complete certain processes when you engage or change tax professionals.

What is changing?

One of the clearest examples of the ATO’s changing digital approach is client-to-agent linking.

Client-to-agent linking is designed to strengthen security by ensuring that eligible businesses nominate their registered tax or BAS agent before the agent can access relevant ATO information and act on their behalf.

The process currently applies to entities with an ABN, excluding sole traders, when they engage a new registered agent or change the authorisations given to an existing agent. This could happen, for example, when an accountant begins representing a business for an additional tax obligation or starts acting for another entity within a business group.

Businesses do not need to routinely renew an existing nomination if their accountant is already correctly authorised and there has been no change requiring a new nomination.

The process is already established for most entities with an ABN. The ATO has also continued to refine it following feedback from businesses and tax professionals, including extending the nomination period from seven days to 28 days.

The next development concerns individuals and sole traders.

The ATO is developing a separate client-to-agent linking process for these clients. Following consultation, the proposed model has shifted to an agent-initiated approach. A pilot is planned for 2027, although dates have not yet been confirmed. The ATO has indicated that client-to-agent linking is expected to become a mandatory onboarding step for new individual and sole-trader client relationships once the process is fully implemented.

For now, there is no new client-to-agent linking requirement for individuals or sole traders.

What happens when you appoint an accountant?

For entities covered by the current rules, the business must complete the agent nomination. Your accountant can guide you through the process, but they cannot complete the nomination on your behalf.

The nomination is made through Online services for business. The person responsible for the business will generally need a Digital ID such as myID and access to the business through Relationship Authorisation Manager (RAM). You will also need the registered agent number provided by your accountant.

Once you have submitted the nomination, you should let your accountant know. The ATO does not automatically notify the agent that you have nominated them.

Your accountant then has 28 days to add the business as a client. If more time is needed, the nomination can be extended for another 28 days. If it expires, a new nomination will need to be submitted.

This makes timing important. If you are changing accountants close to a reporting or lodgment deadline, leaving the authorisation process until the last minute could delay your accountant’s access to the information they need.

Why does client-to-agent linking matter?

The additional nomination step gives businesses greater control over who can access their ATO records and helps confirm that an agent has been properly authorised.

This is particularly relevant as businesses increasingly rely on digital systems to manage tax, payroll, superannuation and reporting obligations.

It is also important to understand that client-to-agent linking is only one part of the authorisation process. It does not replace the registered agent’s own obligations to establish and verify a client’s identity.

Digital access involves more than your accountant

ATO authorisation is only one part of managing access to your business information.

RAM can be used to authorise people to act on behalf of a business across participating government services. This may include directors, employees or other people who need access to particular services.

Accounting and business software can also connect with ATO digital services. Depending on the software and the service being used, different authorisation arrangements may apply.

These permissions serve different purposes. Appointing an accountant does not automatically give employees access through RAM, while changing an employee’s RAM authority does not necessarily change your registered agent’s access.

When someone leaves the business or no longer needs access, it is worth reviewing the relevant permissions and authorisations rather than assuming they will be removed automatically.

Accurate information still matters

Greater digital connectivity can make tax administration more efficient, but it does not remove the need for accurate records.

Outdated business details, incomplete authorisations or errors in accounting records can create delays when information needs to be accessed, reported or corrected.

Regular bank reconciliations, accurate transaction coding and up-to-date payroll and supplier records remain important. Good records give your accountant a clearer view of the business and make it easier to identify issues before a reporting deadline.

Your ABN details, contact information and authorised representatives should also be reviewed when there is a change to your business structure, ownership or key personnel.

The systems may be digital, but the quality of their output still depends on the information being entered into them.

Be careful with unexpected requests

A request to complete client-to-agent linking may be legitimate, particularly if you have recently appointed an accountant or changed the work they are authorised to perform.

However, it is important not to treat every email or message referring to the ATO as genuine.

Do not share your myID, login code, password or other security credentials with anyone, including your accountant. Your accountant can explain how to complete the nomination, but should not ask you to hand over your Digital ID or sign in on your behalf.

If you receive an unexpected request, contact your accountant using details you already know or access the ATO’s online services through the official government website rather than an unfamiliar link.

You can also check the registered agent number before submitting a nomination. If you are still unsure, contact the ATO directly.

A practical approach for business owners

You do not need to understand every part of the technology supporting the ATO’s systems. However, it is useful to know which people and providers can access your information and what action may be required when those arrangements change.

If you are appointing a new accountant, changing your existing accountant’s responsibilities or restructuring your business, raise the authorisation process early. Make sure the appropriate person can access Online services for business and that their myID and RAM arrangements are working.

It is also sensible to review digital access when directors, employees, bookkeepers, payroll providers or other advisers join or leave the business.

These checks are relatively straightforward when completed in advance. They can become more difficult when discovered immediately before a lodgment or payment deadline.

The bigger picture

The continued development of ATO digital services is changing some of the practical ways businesses manage their tax affairs.

For business owners, the benefits can include more efficient reporting, easier access to information and stronger controls over who can access tax records. However, these systems work best when business details, accounting records and authorisations are kept up to date.

Client-to-agent linking is one part of this broader shift. For most entities with an ABN, excluding sole traders, it is already an established part of appointing a new agent or changing an existing authorisation. For individuals and sole traders, the ATO is developing a separate agent-initiated process, with a pilot planned for 2027. No new requirement applies to them yet.

You do not need to become an expert in the ATO’s technology. Your accountant can help you understand what a notification or authorisation request means and whether you need to take action.

At Supervision, we work with Australian businesses to manage their accounting and tax obligations while keeping their financial information accurate and up to date.

If you are unsure about an ATO notification, a client-to-agent linking request or access to your business’s tax information, speak with the Supervision team before taking action.