Look, the Tax Practitioners Board has made it pretty clear that client identity verification isn’t something you can skip anymore. The recent enforcement actions should be a wake-up call for everyone to meet the TPB and ATO Client Verification processes. Practitioners who don’t do proper ID checks are facing serious consequences, including losing their registration altogether.
But here’s the thing, most firms are still stuck doing client verification the old way, endless email chains, manual document checks, and storing copies of IDs that actually breach privacy laws. (Learn why current verification methods fall short)
The Reality Check from TPB
In the recent webinars, the TPB shared some pretty sobering case studies that should worry every practitioner:
- Case 1: One tax agent got terminated for 3 years after lodging 346 false returns without proper ID verification
- Case 2: Another agent was suspended for 6 months for ignoring ATO warnings about compromised client identities
- The bigger picture: Fraudsters are actively going after agents with weak verification processes
As TPB Chair Peter Dure said in recent TPB compliance webinars: “We’ve seen a lack of proper identification processes in practices… You’re expected to verify client identity before providing ANY tax services.”
What You Actually Need to Do (And What Most Get Wrong)
The compliance requirements aren’t as straightforward as most practitioners think to meet TPB and ATO Client verification. The ATO’s verification methods give you several options:
For Individual Clients:
- Full name + TFN and Bank Details (for ATO verification)
- DVS (Document Verification Service) via Stripe Identity for biometric verification
For Representatives (spouses, directors, guardians):
- Verify both client AND representative identity
- Confirm authority to act on behalf of the client
- Document the relationship and authorisation
The Big Mistake Everyone Makes:
Here’s where most firms stuff it up, the TPB says you should NOT store copies of ID documents. This goes against what most firms think they need to do. The ATO’s verification guidelines show you can use DVS services like Stripe Identity instead. (See our complete verification guide)
Instead, you need to record:
- Date and time of verification
- Type of documents sighted
- Who did the check
- Confirmation that documents were clear and legitimate
The Privacy Law Problem: APP 11
Beyond TPB requirements, firms storing ID copies are setting themselves up for Australian Privacy Principle (APP 11) breaches. Storing driver’s licences and passports creates massive liability if you get hit by cyber attacks or even a simple break-in.
The solution? Verification without storage.
How the Firms Are Doing It
The leading practices have moved way past manual processes to secure, automated verification that ticks both TPB and privacy boxes:
1. Secure Digital Verification
Instead of risky email attachments, they use secure portals with biometric verification technology. This actually confirms the person presenting the ID is who they say they are. (How biometric verification works)
2. Compliance Recording
Rather than storing risky copies, smart systems create verification certificates that prove compliance without keeping sensitive documents. (Boost compliance and client satisfaction)
3. Authority Verification
For representatives (spouses, directors, etc.), the best systems verify both identity and authority to act, creating proper audit trails.
4. Integration Ready
Modern verification connects with practice management systems, no more double data entry while keeping everything secure.
How We Handle This at Seamlss
At Seamlss, we’ve solved this through Smart Links that include Stripe Identity verification, the same biometric technology the big banks use.
Watch our recent webinar demonstration:
Here’s how it works:
- Send Smart Link to client via secure portal
- Client uploads ID and takes selfie for biometric matching
- Stripe verifies document authenticity and identity match
- Compliance certificate generated (no document storage)
- Data flows to your practice management system
This approach satisfies TPB requirements while eliminating APP 11 privacy risks. (Complete step-by-step verification guide)
Getting Started: Two Simple Options
The best part? You don’t need weeks of mucking around. Seamlss offers two ways to get you verifying clients quickly:
DIY Option: Start Today
- Self-guided setup with ready-made templates
- Instant access to Smart Links and verification tools
- Get going immediately, no waiting for consultations
- Perfect for firms who want to dive straight in
VIP Onboarding: Expert-Guided Setup
- Personalised configuration for your specific needs
- Expert support to optimise your workflows
- Quick implementation with white-glove service
- Ideal for firms wanting the full treatment
Both options get you onboarding and verifying clients in no time, not weeks of planning and setup. (Share this guide with your clients)
The compliance requirements are clear, the technology is ready, and your clients expect professional, secure processes. The only question is: DIY or VIP?
The Cost of Getting This Wrong
Beyond TPB penalties, think about the broader risks:
- Cyber attack liability from storing ID documents
- Client trust damage from security breaches
- Operational chaos from manual processes
- Competitive disadvantage against firms with modern systems
Future-Proofing Your Practice
Client verification requirements are only going to get tougher. The firms that’ll be thriving in 2025 and beyond are building robust, automated systems now, not trying to patch up manual processes later.
As Warren Buffett puts it: “It takes 20 years to build a reputation and five minutes to ruin it.”
Don’t let dodgy client verification be your five-minute mistake.
Ready to sort out your client ID verification?
See how Seamlss Smart Links handle TPB-compliant client verification without the administrative headaches. Our Stripe-powered biometric verification gives you security, compliance, and efficiency in one automated workflow.
Start DIY Today | Book VIP Onboarding | Watch the Full Webinar
About the Author: Clayton Wood is Co-Founder of Seamlss and owner of award-winning Business Edge Advisors. He regularly speaks on practice automation and compliance for Australian accounting firms.