The unlikely startup partners solving Australia’s hardest tax problems

Jennifer Smith logs into five different accounting portals before 9am, manually re-entering the same client data she had to type in yesterday.

Down the hall, her colleague discovers another TFN has been compromised. Across town, a dozen accounting firms are wrestling with outdated systems that weren't designed for today's demands.

Australia's 14.1 million taxpayers depend on these firms to get it right. But the technology meant to help them is increasingly out of step with modern practice.

That's why the country's accounting professionals decided to stop waiting for someone else to fix it. Instead, they're building the solutions themselves, with help from some unexpected partners.

It started in a room full of accountants

Earlier this year, the Chartered Accountants Australia and New Zealand (CA ANZ) Tax Committee for Smaller Practices gathered for what should have been a routine meeting.

But once the formalities were underway, the conversation shifted to a bigger, bolder question: “Why are we still working around outdated systems that don’t work for us?”

From clunky portals and duplicated data entry to security gaps and broken workflows, smaller accounting firms have long shouldered the burdens of challenging systems - often without the tools or time available to larger players.

Instead of accepting this as status quo, CAANZ picked up the phone and reached out to us.

At Stone & Chalk, we support Australia’s largest innovation community to forge and build powerful partnerships.

So we sat with CAANZ and worked with them to translate and narrow down their very-real industry frustrations into a set of opportunity-driven problem statements for our startups:

• 1. Make tax data trackable – Create a way for accountants to receive real-time updates and alerts around PAYG instalments without the need for constant portal logins.
• 2. Connect disconnected systems – Build tools that update government systems automatically when client details change, reducing admin and error risk.
• 3. Protect client data – Develop a recovery process that makes Tax File Number (TFN) theft easier to detect, manage, and resolve.

With these in place, together we launched the CAANZ Innovation Challenge - a national initiative for startups to co-create solutions for Australia’s accounting professionals.

The responses came rolling in

Within weeks of the challenge launch, 33 startups submitted their ideas, a powerful signal that the broader tech community was ready to help.

Some entrants came from within financial services, while others brought fresh thinking from cybersecurity, artificial intelligence, and enterprise software. But all shared one thing: a belief that technology can simplify and safeguard the work accountants do every day.

After a rigorous review by CAANZ experts, the standout finalists were selected for their potential to create genuine industry impact to continue into the next phase.

Here’s a glimpse of the promising solutions:

• Everest Engineering: Helps accountants track PAYG instalments across clients. It connects to Xero, predicts liabilities, sends automated reminders, and manages deadlines.
• Empathetic AI: Uses an AI agent to automate PAYG tracking and improve client compliance and experience.
• Block Identity: Uses blockchain and biometrics to protect client identity while allowing secure, selective data sharing across platforms.
• Link4: Eliminates PDF handling by connecting directly into platforms like Xero and SAP, using AI to reduce fraud and automate data mapping.

Each of these solutions directly targets one or more of the challenge statements to make a real difference to the industry.

Why this collaborative model works

The real power of this partnership isn’t just in the technology, it’s the approach.

Instead of tech being built in a vacuum and handed down to end users, this partnership allows tax professionals and innovators to co-design solutions. That kind of real-time feedback loop is invaluable.

Startups benefit from deep domain knowledge, real use cases, and a pathway to adoption. In return, CAANZ gains early access to practical tools that address their most pressing issues, along with the ability to vet solutions before recommending them to its 130,000+ members.

This ensures that anything they put forward has already proven its value in real-world conditions. It’s a win-win that speeds up product-market fit while building trust at the same time.

As Chris Kirk, CEO of Stone & Chalk, puts it: “When you combine startup agility with practitioner insight, yes, you get better products, but, you also get smarter systems and that creates stronger industries.”

The ripple effect across the sector

While the challenge is based on the skills of small startups, its impact could extend across the entire tax ecosystem.

This financial year alone, over 14.1 million individual tax returns were lodged with the ATO – more than 8.1 million of those through tax agents. Even a modest improvement in accuracy, efficiency, or data security has the potential to save thousands of hours and protect thousands of people.

Over the coming months, each of the five startups will embed within the CAANZ network, gaining direct access to practitioners for feedback, testing, and co-development.

This month, the startups will pitch their refined solutions at a public showcase event, with opportunities for further investment, exposure, and scale.

But in many ways, the most important milestones have already been hit: trust is being built and small firms are finally seeing tools designed with them, not just for them.

A blueprint for other industries

This program sets a new benchmark for how industry associations can partner with startups to innovate and create value.

CAANZ is proving that you don’t need a mandate or a giant tech budget to spark real change. And for Stone & Chalk, it reaffirms the power of working at the intersection of old and new, where the wisdom of experience meets the energy of experimentation.

Together we’re building a better system, one grounded in collaboration, driven by impact, and powered by people. That’s the kind of transformation Australia can be proud of.

To attend the CAANZ x Stone & Chalk Innovation Showcase on Thursday 21 August, please register now.