The Tax Practitioners Board (TPB) has recommended that all tax agents begin verifying proof of identity for their new clients. Strong client verification helps protect you and your clients from becoming a victim of identity crime, which has increased with sophisticated technology.
To make this a smooth process, the ATO and TPB have developed guidelines to be used along with TPB's Proof of identity requirements for client verification for consistency and alignment.
Is the verification mandatory?
No, but the ATO and TPB recommend verifying your new clients straight away to minimise any risk of identity theft. This is expected to be made mandatory in 2023.
Verifying your client's identity
When you take on a new client, verify their proof of identity before providing any services. The details that need to be verified depend on the type of client:
individuals
individuals (with a representative)
non-individuals.
The Tax Practitioners Board (TPB) have minimum requirements for verifying the identity of a client.
Want to share information about proof of identity with clients?
Download and use the fact sheet for your clients, so they know what documents and information are required for verification.
Examples of accepted documents
An individual client, for example, needs verification of their full name, date of birth, and/or residential address, with at least one primary photo ID, such as a passport. See more examples of documents that can be used for identification.
Recording and editing your client's proof of identity
The way you record a client's proof of identity depends on what MYOB software you use.
MYOB AE/AO users
You can see the proof of identity information that you've entered for contacts in MYOB AE/AO in MYOB Practice. To see a client or contact's proof of identity, go to Contacts > Contacts list and select the client.
To edit a client or contact's proof of identity information, you'll need to make the changes in MYOB AE/AO. The information from MYOB AE/AO will automatically sync with MYOB Practice. Learn more about verifying proof of identity in MYOB AE/AO.
If your AE/AO contacts or clients aren't appearing in MYOB Practice, check that contact migration is turned on.
Partner program members (Not a AE/AO user)
Recording your client's proof of identity
Go to Contacts > Contacts list.
Search for the client or contact that you want to create a record for.
Select their row to open the client details panel on the right.
In the client details panel, scroll down to Proof of identity and click the right-pointing arrow.
Click Create.
If you haven't sighted a client's proof of identity documents because you have a well established relationship, you can still complete their proof of identity by selecting I didn't sight documents.
Enter the details for proof of identity.
For companies, you'll need to include an individual as an authorised representative.
Click Save.
Editing and deleting your client's proof of identity
When you've recorded information about a client's proof of identity, you can edit or delete the details.
When you edit or delete a client's proof of identity, the information will be recorded in the Audit History.
Go to Contacts > Contacts list.
Search for the client or contact you want to edit or delete.
Select their row to open the client details panel on the right.
In the client details panel, scroll down to Proof of identity and click the right-pointing arrow.
Click Edit or Delete.
Finding clients who haven't had their identity verified
Go to Contacts > Contacts list.
Under the Proof of ID drop-down, select Not Completed.
This will show all your clients who haven't yet had their identities verified.