Practitioners worry client-to-agent linking will leave offline clients behind

The ATO’s announcement that client-to-agent linking will extend to individuals and sole traders drew a fast and heated response from many practitioners online. A single post sharing the news in an online practitioner group attracted more than 120 comments.

Much of that reaction drew on firsthand experience. Practitioners who have spent the past few years helping business clients complete agent nominations pictured doing the same for every new individual client. Many raised concerns about older clients, clients without smartphones and clients who choose to stay off myGov.

The ATO’s published detail shows the individual process will differ from the business process in one significant way. For individuals and sole traders, the agent starts the link. Several practitioners in the discussion said an agent-initiated process would make the difference. Other concerns remain open until the ATO releases more detail.

What the ATO has announced

On 23 September 2026, the ATO published details of how client-to-agent linking will apply to individuals and sole traders.

The ATO progressively deployed client-to-agent linking to all entities with an ABN, excluding sole traders, in 2022 and 2023. It was introduced in response to fraud where agents’ digital credentials were compromised by unknown third parties. Those third parties were linking taxpayers as clients without authorisation, lodging false business activity statements, updating bank account details and viewing sensitive taxpayer information.

According to the ATO, client-to-agent linking “has successfully prevented this fraudulent activity in the ABN entity market.” The same protection will now apply to individuals and sole traders.

How it will work for individuals

The process has four parts. The agent initiates a client nomination request through Online services for agents or their practice software. The client reviews and confirms the request in the ATO app or in Online services for individuals, which is accessed through myGov. Once the client confirms, the agent can add the client to their client list and access their tax record. For taxpayers who are unable to engage digitally or require additional support, the ATO says assisted and non-digital pathways are being developed.

This reverses the order used for business clients. For ABN entities, the client completes the nomination themselves in Online services for business, and the agent receives no automated notification when it is done.

The ATO says it chose an agent-initiated process after consultation showed it was the preferred approach for agents and was likely to provide a simpler experience for individuals and sole traders. The existing process for ABN entities stays as it is.

Who it applies to

Linking applies only when an individual or sole trader appoints a new registered agent or changes the authorisations given to an existing agent.

From November 2027, linking will “become the only way for registered agents to add new individual and sole trader clients to their client list.” For now, the ATO says existing agent authorisation and access arrangements remain unchanged and no action is required at this stage.

One question for firms planning growth remains open. For business clients, the ATO’s guidance allows transfers between registered agent numbers under the same practice ABN without new nominations, along with whole-of-practice transfers where certain requirements are met. The ATO’s page for individuals and sole traders has yet to say whether the same applies.

The concerns practitioners are raising

The most common concern in the discussion is clients who cannot or will not use digital services. The ATO has committed to assisted and non-digital pathways. Until it publishes what those look like, practitioners’ questions about clients without a smartphone or a myGov account have no firm answer.

Experience with business clients shapes the rest of the discussion. Some practitioners raised concerns about phone waits when clients need the ATO’s help to complete a link, and questioned how individual clients will fare. The pilot will test how the process works in practice. Participants will assess the “effectiveness, usability and accessibility of the process” and identify barriers to successful linking.

Volume is another concern. At least one practitioner said their fees would rise as a result of the change, while others questioned whether to keep taking on new individual clients.

Most comments were critical. A few practitioners said security measures of this kind are reasonable and the profession should adapt.

The pilot

The pilot runs from March to October 2027, with participants joining in phases. Selected registered agents and the individual and sole trader clients they onboard will take part. The ATO will choose a representative mix of practices and client types.

Firms whose practice software has been updated to support the new process can use it for the pilot. Firms whose software has yet to be updated can take part through Online services for agents.

Participants will have access to a dedicated support team. They are expected to stay engaged until the end of their agreed involvement and will not be paid or reimbursed for their time.

Registered tax and BAS agents who represent individual and sole trader clients can apply to take part through an expression of interest on the ATO website. Submitting an expression of interest does not guarantee a place.

Tax time 2027 falls inside the pilot window. For firms outside the pilot, the ATO’s guidance indicates current arrangements continue until full deployment in November 2027.

What firms can do now

The ATO says no action is required at this stage. Firms still have several things to work through before November 2027.

Decide whether the pilot suits your firm. Firms with a large individual client base, including clients who find digital services difficult, are well placed to show the ATO where the process works and where it breaks. The time commitment is unpaid, so weigh that against the benefit of early experience.

Identify the clients who will need help. Many firms can already name the clients who struggle with myGov. Knowing who they are means the firm can plan for the assisted pathway once the ATO publishes it.

Ask your software provider about their plans. The ATO says practice software can support the new process once providers update it. Firms relying on practice software for onboarding will want to know the provider’s timing.

Review onboarding and pricing. Add linking to the new client checklist once the guidance is final. Firms that absorb onboarding into a flat individual return fee should decide whether that still works.

Watch for guidance. The ATO has said it will publish guidance and support materials ahead of broader implementation, and it will continue to consult with agents and industry representatives. Professional bodies are one channel for raising practical concerns in the meantime.

What the reaction shows

The strength of the response in that discussion reflects how much practitioners have learned from business linking. The pilot gives the profession eight months to test whether the individual model works for the clients who found the business process hardest. Firms with those clients have the most to contribute.

Visit the ATO website for the full details and to express interest in the pilot.