The Australian Taxation Office (ATO) is introducing a new security step for sole traders and individuals who use a registered tax or BAS agent. Known as client-to-agent linking, the process is designed to protect your personal tax information and prevent unauthorised access.
The good news is that there is nothing you need to do just yet. If you already work with an agent, your existing arrangements will remain in place. However, the changes are expected to roll out from 2027, so it’s worth understanding what to expect.
Here’s what client-to-agent linking means, why the ATO is introducing it and how you can prepare.
What is client-to-agent linking?
Client-to-agent linking is a security process that confirms you have authorised a registered tax or BAS agent to act on your behalf.
Under the new process, your agent will send you a nomination request, which you will need to review and approve before they can add you to their client list and access your ATO records.
The process is already in place for most business entities with an ABN, excluding sole traders. The ATO is now extending the requirements to individuals and sole traders.
This additional step will give you greater control over who can access your tax information and help reduce the risk of identity theft and fraud.
Why is the ATO introducing these changes?
The changes are part of the ATO’s ongoing efforts to strengthen security and protect taxpayer information.
In the past, criminals have gained access to tax agents’ online credentials and used them to:
- Add taxpayers to an agent’s client list without their permission
- Lodge fraudulent business activity statements
- Change bank account details without authorisation
- Access sensitive taxpayer information
By requiring taxpayers to approve agent nominations, the ATO aims to ensure that only authorised agents can access their information and act on their behalf.
How will client-to-agent linking work?
The new process will be initiated by your registered agent, with you required to confirm the request.
Here’s how it is expected to work:
- Your agent sends a request: Your agent submits a nomination through the ATO’s Online services for agents or their practice software.
- You review the request: You receive a request to confirm your agent’s nomination.
- You approve the nomination: Log in to the ATO app or Online services for individuals through myGov to review and confirm the request.
- Your agent is linked: Once approved, your agent can add you to their client list and access your relevant tax information.
The ATO is also working on assisted and non-digital options for people who cannot access online services or need additional support.
Key dates to know
The ATO plans to introduce client-to-agent linking for individuals and sole traders in two stages:
- March 2027: A pilot program begins with selected registered agents and their new individual and sole trader clients.
- November 2027: Full rollout. Client-to-agent linking will become the required process for registered agents adding new individual and sole trader clients.
The pilot will allow the ATO to test the process, gather feedback and make improvements before the changes are introduced more widely.
Until the full rollout, existing agent authorisations and access arrangements will remain unchanged.
What should sole traders and individuals do now?
There is no immediate action required. However, a little preparation now can make the process easier when it is introduced.
We recommend:
- Check your myGov account: Make sure you have an active myGov account and that it is linked to the ATO.
- Download the ATO app: Consider installing the app and familiarising yourself with how to access your account.
- Keep your login details secure: Never share your myGov password or security codes with anyone.
- Check nomination requests carefully: Only approve requests from an agent you know and have agreed to work with.
- Be alert to unexpected requests: If you receive a nomination request you weren’t expecting, don’t approve it. Contact your agent or the ATO to check.
If you already work with an agent and aren’t changing your arrangements, you don’t need to do anything at this stage.
How T3 Partners can help
At T3 Partners, we keep up to date with ATO changes and help our clients understand what they mean for their business.
As registered BAS Agents, we support sole traders and small businesses with bookkeeping, BAS and payroll services. When client-to-agent linking is introduced, we’ll guide our clients through the process and explain what they need to do.
We’ll also keep our clients informed as the ATO releases further information, so you know what to expect and when.
If you’re a sole trader looking for bookkeeping, BAS or payroll support, our friendly team is here to help.
Need a hand?
Whether you have questions about the upcoming ATO changes or need support with your bookkeeping, BAS or payroll, we’d love to hear from you.
Call T3 Partners on 1300 442 484 or visit our website to book a chat with our team.
—————————————————————————————————————————
FREQUENTLY ASKED QUESTIONS
Does client-to-agent linking apply to existing clients?
No immediate action is required if you already have an authorised relationship with your registered tax or BAS agent. Existing agent authorisations and access arrangements will remain unchanged when the new process is introduced. The changes will primarily affect new client appointments and changes to existing agent permissions.
Do sole traders need to link their BAS agent?
Yes. From the full rollout in November 2027, sole traders will need to approve a nomination before a registered tax or BAS agent can add them as a new client. This is part of the ATO’s extended security requirements.
Do individuals need to approve their tax agent?
Yes. Individuals who appoint a new registered tax agent will need to confirm the nomination through the ATO’s online services or an approved alternative process.
How do I approve a client-to-agent linking request?
You will be able to review and approve your agent’s nomination through the ATO app or Online services for individuals accessed through myGov. The ATO is also developing assisted and non-digital options for people who need additional support.
What happens if I receive a nomination request I don’t recognise?
Do not approve the request. Contact your registered agent or the ATO directly to confirm whether the request is legitimate. Never approve a nomination from an agent you haven’t agreed to work with.
Do I need to do anything before November 2027?
No. There is no immediate action required. However, it’s a good idea to make sure your myGov account is active and linked to the ATO so you’re ready when the new process begins.