ATO issues reminder to tax agents as government phases out cheques
The Tax Office has told practitioners to ensure client bank details are included in every lodgment to help with the digital payments transition.
The ATO is reminding tax agents to include clients’ bank account details in every lodgment as the government shifts away from using cheques in favour of electronic payments.
Missing information could result in refunds being issued as paper checks and risk the removal of bank details from a client’s tax account, complicating future transactions.
“Receiving payments electronically is faster and more secure than cheques,” the Tax Office said.
“As we move away from cheques, there are steps that you, your staff, and your clients can take to ensure refunds and payments are made electronically.”
The reminder has come as part of the government’s push to modernise Australia’s online payment systems.
This week, Treasurer Jim Chalmers and Assistant Treasurer Stephen Jones announced cheques would cease being issued by 30 June 2028 and cease being accepted on 30 September 2029.
The ministers said cheque use had fallen by 90 per cent in the last decade and that the government would help customers and businesses still using them to switch to other payment methods.
The government would also work with its agencies and departments with high cheque usage to develop a transition plan away from reliance on cheques.
The ATO said tax agents could verify and update client bank account details through its online services for agents portal.
Bank details must be consistently included for clients with multiple returns, and a single omission of information would default all future clients to cheques.
If clients reported receiving cheques despite submitting bank details, it could indicate issues with the provided information or instances where non-income-tax accounts, such as superannuation, lacked accurate bank records.
“If you've included bank account details but your client has received a cheque from us, it could be because there's an issue with the bank account details provided,” the ATO said.
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