The ATO-approved Digital Service Providers (DSPs) are secure, cloud-based infrastructure certified to lodge tax direct payroll data to the ATO. The Australian taxation environment is radically changing with the new reforms implemented in the context of the ATO’s Digital Strategy 2022–2025. One of the major steps following this strategy is STP (Single Touch Payroll), which has entered its Phase 2. This impels employers to report more granular payroll data. DSPs like Aupod make work a lot easier with the obligation of filing taxes on your behalf, and other superannuation.
How ATO Approved Digital Service Provider Work?
The ATO authorised DSPs are software platforms that interact with the ATO on behalf of businesses, tax agents, or individuals. These service provider software simplifies tax lodgment, payroll reporting, and superannuation contributions with ATO compliance.
User → DSP Software → ATO APIs → ATO Systems → Response → Back to User
Log in to the Software
Different ATO-compliant DSP works differently, focusing on one or multiple solutions. But all the ATO-compliant software services can be accessed by a simple sign-up and registration with them. Registering with the Australian taxation and accounting service provider software eliminates the step of logging in ATO separately.
Choose the Service & Fill Requirements
SAAS ATO’s focus on delivering secure, streamlined tax and accounting services to individual tax returns (covering wages, Centrelink, investments, and rentals), sole trader support for ABN holders with BAS and expense management, and company tax and ASIC compliance for startups and SMEs. Based on needs, fill the requirements, and your job here is done.
Lodgment with the ATO
Some software platforms are fully automated and work without expert review. Others, like Aupod, offer advanced features such as AI support and expert accountants who check your documents for accuracy and help you get the best possible refund. The plus of hybrid models is the lower chances of error. After the review, DSP lodges tax return or BAS via secure ATO-approved APIs. Once the process is completed, you will get notified via e-mail, and it will also show on the dashboard.
ATO DSPs Making Aussies’ Tax and Compliance Easier
ATO-approved Digital Service Providers (DSPs) are bridging the gap between Australians and the evolving tax compliance landscape. These certified software platforms conform to the Australian Taxation Office (ATO) standards.
1. Compliance With ATO Security & Operational Standards
ATO-approved DSPs are formally certified to comply with the Operational Security Framework (OSF). It sets a comprehensive standard for secure interaction with ATO systems. The ATO and the Australian Cyber Security Centre (ACSC) manage the Operational Security Framework (OSF). It sets the minimum security standards that providers are obligated to follow in areas such as:
- Data integrity and confidentiality
- System availability and resilience
- Audit logging and traceability
- Incident detection and response
- Personnel security and access controls
ATO-approved Digital Service Provider (DSP) has to undergo complete risk assessments to submit evidence that their systems meet required standards. Lodgement via DSP is protected by strong privacy, cybersecurity, and audit controls.
2. Direct API Access and Seamless Integration
ATO-approved Digital Service Providers (DSPs) have direct access to ATO web services through Application Programming Interfaces (APIs). These APIs connect to key services such as:
- Company, Trust, and Partnership Tax Returns
- Single Touch Payroll (STP) Phase 2
- Business Activity Statements (BAS)
- Income Tax Returns (ITR)
- Fringe Benefits Tax (FBT)
- Tax File Number (TFN) declarations
With API access, DSPs remove the need for manual data entry or file uploads. This allows users to lodge information in real time, receive instant validation, and get immediate feedback. As a result, processing becomes faster and more accurate, with fewer delays and fewer errors.
3. Alignment with the ATO’s Digital Strategy 2022–25
The ATO’s Digital Strategy 2022–25 sets a clear plan to modernise Australia’s tax system through digital-first services. The strategy focuses on four main goals:
- Use of trusted digital identity systems, such as myGovID
- Collection of high-quality, verified data directly from the source
- Easy-to-use self-service tools for taxpayers
- Real-time systems that adapt quickly to changing needs
ATO-approved Digital Service Providers (DSPs) are expected to follow this direction. Their software operates smoothly with ATO systems and supports goals like eInvoicing and real-time payroll reporting.
4. Tax Practitioner Visibility and Transparency
Starting mid-2025, the ATO will update its App and Agent Portal to improve how tax agents and clients communicate. These updates will include:
- Real-time messaging between agents, clients, and the ATO
- Status tracking for tax submissions and enquiries
- Logs showing all interactions with ATO systems
ATO-approved Digital Service Providers (DSPs) have these features in their systems. This will help tax agents see the progress of lodgements, respond to ATO messages quickly, and manage client information clearly.
Aupod: Smarter, Safer Tax Lodgement DSP Backed by ATO
Aupod is listed amongst the trusted DSP’s in Australia, supporting individuals,SME’s, sole traders, and small businesses, including trusts and companies. It is designed to meet the ATO’s Operational Security Framework (OSF). The framework guarantees STP Phase 2, BAS, or individual tax returns are submitted through a reliable, real-time system that reduces manual errors and delays.
Lodge smarter with Aupod.ai—an ATO-approved DSP built for fast, secure, and compliant tax filing.
