Statement of Tax Record for a Client: Agent Steps

A statement of tax record is an ATO document showing whether a business meets specified registration, lodgment and payment requirements. As the client’s registered tax agent, you can request it through Online services for agents after checking their accounts.

What a Statement of Tax Record Shows and Who Asks for One

A statement of tax record (STR) confirms satisfactory engagement with the Australian tax system against the procurement criteria. It does not list every transaction or certify that every tax return is correct.

Under the Shadow Economy Procurement Connected Policy, covered Commonwealth procurements require satisfactory STRs when their estimated total value is $4 million or more, including GST. The threshold concerns the procurement, even when an individual contract awarded under it is smaller. First-tier subcontractors are also covered.

Read the tender documents to identify every entity requiring an STR. A trust needs records for the trust and each trustee. A partnership needs its own record and records for partners directly involved in delivering the contract. Joint ventures and tax groups have additional entity requirements. Match the applicant’s legal identity and ABN to the tender, including any associated entities.

A satisfactory STR meets the applicable criteria. A not satisfactory outcome identifies a problem that needs attention before the tender can meet that requirement. The Department of Finance’s tender guidance gives the validity periods. A record lasts 12 months from issue for an Australian tax history of at least four years, or six months for a shorter history.

Check validity at submission and contract award. Successful tenderers must maintain valid satisfactory records during the contract. Record the renewal task on the client file.

Requesting the Statement as the Client’s Agent

Request the STR for the correct linked client through Online services for agents. Have the tender documents, entity name and ABN ready, together with the client’s authority and any partner or trustee details.

Follow the ATO’s STR application instructions.

1. Select the client in Online services for agents. Check that the selected entity is the applicant required by the tender.
2. Select Business, then Statement of tax record.
3. Select Apply on the Requests bar near the bottom of the screen.
4. Complete the application questions. Identify a partner or trustee applying in that capacity. Answer the supplementary questions when the Australian tax history is shorter than four years.
5. Submit the request and save its receipt. It normally appears within 24 hours.
6. Return to the same Statement of tax record screen. Download the STR and taxpayer report from Requests once processed.

Registered tax agents use this route for their eligible business clients and associated entities. Corporate trustees with a TFN and no ABN must apply by phone. A corporate trustee needs an active TFN for a satisfactory outcome.

A client applying itself uses Online services for business: Lodgments, Reports and forms, then Statement of tax record. It selects Apply in Requests. Individuals, including sole traders and partners or trustees without an ABN, can use ATO online services through myGov. For access and authorisation, use the Online services for agents guide.

The ATO generally processes STR requests within four business days. Request early enough to allow correction and another application if needed. If the receipt is absent after 24 hours, or the STR is absent after four business days, call the registered agent line on 13 72 86.

Verify the entity, satisfactory outcome and validity before giving the STR to the client for the tender. The taxpayer report belongs on the client file. Treasury’s tenderer guidance says it is for the applicant’s information and does not accompany the tender.

Why a Record Comes Back Not Satisfactory

A not satisfactory STR means the applicant has failed an applicable criterion. Read the taxpayer report first, then compare the failed item with the ATO account and registration records.

Failed Check	What to Inspect	Corrective Action
Registration	Required TFN, ABN and GST registrations for the applicant’s capacity	Complete or correct the required registrations. A tendering business or first-tier subcontractor needs all three. Partner and trustee requirements differ.
Lodgments	Each required lodgment type over the last four years, or the shorter operating period	Lodge missing income tax returns, BAS or FBT returns. The criterion is at least 90% of each type, with agreed extensions recognised.
Payment	Undisputed overdue debt of $10,000 or more	Pay the debt or establish an ATO payment plan. Debt under a formal objection, review or appeal is excluded from this criterion.
Short Australian tax history	Supplementary answers for an applicant with less than four years of Australian tax history	Correct the application answers where appropriate. Confirm the declarations about Australian obligations, tax convictions and overseas obligations.

Resolve overdue returns through the late tax returns guide. For debt the client cannot pay immediately, follow the ATO payment plan steps. An intention to arrange instalments is insufficient. Confirm that the plan is in place.

After corrective action appears in ATO systems, reapply the following day. Read the fresh STR before telling the client the issue is resolved. If the outcome conflicts with the recorded position, contact the ATO with the receipt and taxpayer report.

Do not promise a satisfactory record before checking the accounts. A nil income tax balance does not establish that activity statement debts or overdue lodgments are clear. If time is short, check the tender’s rules for a request receipt. Do not assume the receipt replaces a satisfactory STR.

Reading the Running Balance Account and Statement of Account

The running balance account records liabilities and credits allocated to that account. Practitioners often call the business activity statement account the integrated client account. It carries activity statement amounts such as GST and PAYG obligations, together with related payments and adjustments.

The income tax account records income tax assessments and related transactions separately. Review both accounts. An ATO statement of account shows transactions and balances for an account. It answers a different question from the STR, which records the procurement outcome. A certificate of residency is another separate ATO document, used to establish Australian tax residence.

To inspect the account in the ATO’s agent user guide, follow these steps.

1. Select the client, then Accounts and payments and Accounts summary.
2. Note each account’s balance and overdue amount. The balance can include amounts that are not yet due.
3. Select the Account name to open its transactions. Use Filter to choose the period and processed or effective date order.
4. Download the transactions in CSV or HTML, or save the print-friendly account summary. Keep the relevant statement of account and notices with them.
5. Reconcile the opening balance through debits and credits to the closing balance. Trace unexpected transfers before treating a credit as available cash.

A debit generally increases the amount owing. A payment or credit reduces it. General interest charge (GIC) adds to overdue debt, so the outstanding amount can grow after the original assessment. The ATO’s debt guidance explains daily compounding and periodic posting of GIC.

The ATO can apply a credit in one account against a debt in another. Check the transfer entries on both sides. For example, a hypothetical company owes $12,000 on its activity statement account and has a $3,000 income tax credit. If the ATO offsets the full credit, the activity statement debt becomes $9,000, before further interest or transactions. Confirm the offset has posted before reporting that balance.

Account Checks When a Client Comes on Board

Record the new client’s ATO starting position before promising a tender-ready STR. Review the activity statement account and income tax account, plus other relevant accounts shown in Accounts summary.

Check the following items on the client file.

• Current and overdue balances for each account, including GIC and penalties.
• Due and overdue income tax returns, BAS and FBT returns.
• Required registrations and the capacity of any partner or trustee applying.
• Payment plans arranged by the previous agent, including instalments, defaults and the next payment.
• Credits held, refunds retained and transfers between accounts.
• Debts on hold that might remain payable despite a nil displayed balance.

The ATO’s debts on hold guidance explains why the displayed balance alone can miss an existing debt. Review account history and unresolved correspondence where that issue arises.

Save the account extracts and record what you checked, the balances found and who owns each corrective action. Tell the client in writing about any debt. Distinguish the total balance from the overdue amount and explain any payment plan already in place.

If the client expects to tender soon, request the STR in the first week of onboarding. Put corrections ahead of the tender deadline and assign someone to retrieve the result. Finish the task only after the client holds the correct, satisfactory and valid records for every required entity.