Notice · Taxation
Client notice on AI use with tax records and tax file numbers
Plain-English notice and consent form telling tax clients which AI tools the firm uses with their records, how tax file numbers are kept out of them, where data is stored, and how to opt out.
- Kind
- Notice. A formal notice to serve or publish.
- Where it applies
- Australia
- AI use
- Green AI can do most of the drafting. A lawyer still reviews the result.
- Law stated as at
- 17 October 2026
- Status
- Maintained. Checked on 17 October 2026 against the 8 authorities it cites, for Australia.
- Version
- 1
- Source
- Written for this library
When to use it
Use as a schedule to the engagement letter, or as a standalone notice to existing tax clients, before client information goes into any AI tool. Update it whenever a tool changes. It does not replace the firm's privacy policy, which must also be accurate.
How AI may be used
AI may help adapt the notice to the firm's tool register and plain-English style. A lawyer and the privacy officer confirm that every statement about tools, storage and TFN handling is accurate before it is sent.
AI may
- Fill the tool table from the firm's approved AI tool register
- Rewrite sections in plainer English, or for a particular client group
- Compare the notice with the firm's privacy policy and engagement letter and list inconsistencies
AI must not
- Must not describe a tool's data handling from marketing material without the contract terms being checked
- Must not state that TFNs are kept out of AI tools unless the firm's process actually masks them
- Must not remove the opt-out or the consent section
The lawyer checks
- Each tool listed matches the approved register and its contract terms (training use, retention, location)
- TFN statements match how the firm actually handles TFNs under the Privacy (Tax File Number) Rule 2015
- The overseas storage statement is accurate for APP 8
- The client's choice is recorded on the file before AI use begins
Method: how the Green, Yellow and Red levels are decided. This is guidance for planning, not legal advice.
Official form
Open the official form. Always use the current version from the issuer.
Read the full text
The full text is for signed-in accounts. It is free. When you sign in you can:
- read the whole precedent, with its drafting notes beside it;
- copy it, or download it as a Word file or Markdown;
- add it to your firm’s knowledge base, so colleagues can find it;
- let the AI tools you connect read it from that knowledge base.
The summary, the law it rests on and the AI-use guidance above stay public. Privacy.
More in Taxation
- Letter of tax advice with confidence rating and penalty position
- Letter responding to an ATO formal notice to give information or produce documents (with privilege claim)
- Private ruling application (ATO approved form): completion guide
- Objection to an ATO assessment or decision: completion guide and grounds structure
- Voluntary disclosure to the ATO: completion guide and penalty-reduction checklist
- Verification checklist for AI-assisted tax research, advice and objections