Introduction
Australian tax leaders face growing pressure under the ATO Justified Trust program in Australia. What once centred on documentation has become a test of operational proof. The ATO now expects evidence that governance frameworks work every day—not just exist on paper.
This shift is redefining the tax function. Teams must move from compliance cost-centres to strategic assurance partners. Manual, reactive models are no longer inefficient—they put assurance ratings and reputations at risk.
Through insights from our recent Thomson Reuters roundtables with senior tax professionals and the Enhancing Tax Governance with the ATO webinar, five key realities have emerged. These lessons show how the ATO’s expectations have evolved and how technology can help you lead with confidence.
1. Governance on Paper Isn’t Enough: The ATO Tests for ‘Lived Compliance’
A board-approved tax framework is no longer the goal—it’s the starting point. The ATO now tests whether your controls operate effectively in day-to-day business.
Roundtable participants agreed: the ATO wants proof of “lived governance.” Mark Oh, Indirect Tax Segments Lead, Thomson Reuters, captured this shift well:
“They’re looking at whether that tax framework is lived in practice … and I think they mean it.”
Reaching a Stage 3 rating—where controls are both designed and operating effectively—now defines success. Achieving it requires consistent evidence that links governance policies to daily actions.
2. The Great Disconnect: Why Many Tax Teams Still Depend on Spreadsheets
Despite the ATO’s focus on system integrity, many tax teams still rely on spreadsheets. In a Thomson Reuters pre-event survey, 58% of senior tax leaders admitted their teams depend heavily on them.
This dependence creates risk. Spreadsheets are fragile, hard to audit, and easily broken. Simon Raper, Tax Technology Consultant, WTS Australia, warned during our webinar that Excel carries “risks and pitfalls” too great for significant tax exposure.
To close this gap, tax leaders must build a business case for digital investment. Several executives shared how linking technology adoption to financial efficiency helped win CFO support. Moving from manual tools to automated systems doesn’t just improve compliance—it protects data integrity and team capacity.
3. The Proactivity Gap: Too Many Businesses Wait for the ATO to Knock
The ATO expects tax risk management to be continuous, not reactive. Yet its own findings show many companies only review their controls when the ATO initiates a review.
According to the Findings Report – Top 1,000, 34% of taxpayers make voluntary disclosures after receiving notice of a GST assurance review. The ATO interprets this as proof that self-reviews often occur too late—after, not before, an audit begins.
Proactivity must become part of every governance cycle. In one Thomson Reuters webinar, a logistics client shared how the ATO directly advised them to adopt “more robust tax technology” before their next review. The message is clear: waiting invites risk. Investing early in systems and controls is the path to higher assurance.
4. Data Integrity Is Now the Front Line
Technology-driven data integrity is no longer optional. It’s the foundation of lived compliance. Without strong systems, it’s impossible to provide the verifiable evidence the ATO demands.
The ATO’s analytics capabilities have expanded rapidly. Alice Han, Direct Tax Segments Manager, Thomson Reuters, noted, “The ATO’s enhanced data capabilities mean they now have a more complete view of an organisation’s tax affairs.”
Mark Oh also highlighted that the regulator is giving “even more focus to the way taxpayer systems create, capture, collate, and report GST.” This focus makes purpose-built tools such as ONESOURCE essential. These platforms automate reconciliations, maintain audit trails, and deliver the consistency needed for assurance.
Simply put, the technology that strengthens data integrity also strengthens trust.
5. The Rise of the Tax Technologist: A New Skillset for Modern Teams
The shift toward data-driven governance is transforming the skills tax teams need. The tax technologist—someone who blends technical tax knowledge with digital fluency—is now a critical role.
At recent Thomson Reuters executive roundtables, leaders agreed this is no longer a future concept but a current necessity. The trend aligns with findings in the Future of Professionals Report 2025, which highlights the “modern professional” who uses technology to enhance judgment and add strategic value.
As Thomson Reuters President and CEO Steve Hasker put it:
“AI will not replace professionals, but AI-powered professionals will.”
Teams that embrace this mindset will move faster, deliver stronger evidence, and earn higher assurance.
Conclusion: Lead the Assurance Conversation
Justified Trust has outgrown its compliance origins. It now demands a proactive, technology-enabled approach to governance that lives within business operations.
The ATO’s expectations—and its tools—are evolving quickly. Forward-looking tax functions must match that pace. By combining sound governance, automation, and skilled people, leaders can turn compliance into confidence and assurance into advantage.
To find out more about how ONESOURCE can help you achieve Justified Trust, check out our latest guides:
- Strengthening Indirect Tax Governance to Get Ahead of ATO Justified Trust Requirements
- Strengthening Corporate Tax Governance to Get Ahead of ATO Justified Trust Requirements
*This podcast was voiced by AI and based on the webinars, surveys, and reports made by and participated in by humans.
