UNCLASSIFIED / INSERT DOCUMENT TITLE
workshop SUMMARY / external Consultation Workshop / 11 March 2014 / UNCLASSIFIED
format / EVENT TYPE / ISSUE Date / Classification
Software industry consultation Summary / File Ref:
Title: / Business Viability Assessment Tool (BVAT) Integrated Software Industry Consultation
Venue: / ATO premises, Goulburn Street, Sydney
Event Date: / 4 February 2014 / Start: / 12.30 / Finish: / 1.30
Chair: / Des Woods / Facilitator:
Contact: / Des Woods / Contact Phone: / 07 314 95281
Attendees:
Names/Section / Des Woods, ATO Debt
Di Scholl, ATO Debt
Lisa Masin, ATO SBR
Joe Maxymenko, ATO SILU
Leo Cheung, ATO SILU
Geoff Collett, EMS Solutions
Simon Hutchinson, Reckon
Nicholas Perrott, Attache
Richard Puffe, MYOB
Andrew Ritchie, Tibco
Andrew Sprankling, Xero
BVAT overview
BVAT is a decision support tool that assists the ATO make an assessment of business viability. It provides the ATO with a structured decision making framework for assessing financial performance and position.
In December 2012, the ATO released the online version of the BVAT on ato.gov.au. The intent was to provide small business with a better understanding of the factors considered when negotiating repayment of a debt with the ATO thereby providing transparency in our decision making.
The ATO is now looking to progress to the next stage in the evolution of the BVAT – integration with commercial accounting software packages and services.
Workshop Discussion
·  The approach proposed by the ATO is to provide the BVAT via a web service. To remove manual entry and maintain the integrity of data it is preferable if financial information is extracted directly from the accounting solution.
·  In terms of the market segment population who may use the product, it is estimated approximately 300,000 - 400,000 of the SME/Micro population seek support from the ATO at some point in the business cycle.
·  The group agreed it was preferable for the viability report to be presented in a single point and format e.g. PDF within the software.
·  The general consensus was that a web service was the preferred method to adopt.
·  Financial information returned from a business accounting system would currently need to be returned to the ATO using an authenticated method. Current authenticated options are:
o  SBR (preferable option for a natural systems approach – most likely longer term)
o  Portal (offers secure messaging for return of BVAT report by XML or PDF)
·  Consideration needs to be given to the way the report is presented and the taxpayer’s reaction to certain statements e.g. “…this may indicate that your business is not trading viably…”
·  The merit of including relevant qualitative questions should also be considered.
·  Taxpayers will need assistance in interpreting and responding to the BVAT outcome. The ATO will support the Integrated BVAT with a comprehensive communication strategy.
·  The ATO sees the transition to the Integrated BVAT as an opportunity to work in partnership with the software industry to promote and encourage greater uptake of electronic products.
·  The software participants acknowledge the benefits of the concept, but need to:
o  more fully understand the level of investment required on their behalf and how this might be offset by potential benefits; and
o  estimate user population and how this supports the business case for software industry participation.
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