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BAS Agents lose clients because of new CAL rules

The ABN questions ATO's new and more complicated CAL process, with research from the ABN revealing members are losing clients because of it.

The Australian Bookkeepers Network (ABN) has submitted feedback to the ATO about the newly introduced Client Agent Linking (CAL) process, following their member research that signals concerns about the more complicated process.

Introduced in November, this CAL replaces a process which was formerly in the hands of BAS and Tax Agents and now falls at the feet of new clients. It now involves a 5 stage linking process which is more complex than previously. Its purpose is to elevate security standards.

The ABN’s concern that the impost on clients might result in bookkeepers and BAS Agents losing work prompted member research into their experiences so far.

Research says process is stopping and delaying business getting done

Research revealed that approximately two-thirds of ABN members have been delinked by tax agents. Subsequently, 20-25% of that number report that client resistance to the CAL process has resulted in the tax agent retaining work previously conducted by them. In other words, BAS agents have lost work to tax agents because it is too difficult for the small business to re-link to their chosen BAS agent. 

Of those clients that do persist, 45 percent of ABN members say clients are stressed and frustrated by the process. CAL has held up bookkeepers and BAS Agents from performing critical business tasks like lodging BAS (13%), filing STP (5%) and some being unable to complete the linking process (5%).

ABN members signalled their concern with worrying comments

One member said they’d “Definitely lost client/s.. or not taken them on. I'm only doing sole traders until there is some sort of resolution. I specialise in tradies and they don't want the hassle of creating ATO accounts and trying to link me.”

Another said, “One client is having trouble at their end and the fact that when they call they have to wait for so long - like what small business has time to sit on the phone. Another, the accountant has kicked me off, so the client needs to link me again - another unnecessary step.”

ATO engagement in feedback process critical to improvement

ABN Director Peter Thorp says that this is tangible proof the effort to solve a security problem has gone too far, actually causing harm to the industry and business community it was trying to protect.

“When a significant percentage of the BAS Agent and bookkeeping profession has lost at least one or two clients in just 5 months since the introduction, you can imagine how much profitability will be lost if this continues, ” said Peter.

“When new technology and processes are meant to find efficiency but do the reverse, it’s clear things need to change.

The ATO has commissioned its own research into the impacts of CAL. Like the research we have conducted, we hope it is the flashing warning light needed to prompt faster action to fix the problem,” said Peter.

To align your business with Australia’s largest bookkeeper and BAS Agent industry lobby, the ABN invites you to become a member today.