I received a reply from the ATO.
I've summarised my original email and its response, and included the full text 
of the response below.

Koji



Summary
=======

My original email
-----------------

Concerns:
- myGovID should not require a recent smartphone.
- myGovID should not require an Apple or Google account.
- myGovID must be free software, not remain proprietary.

Recommendations:
- make myGovID binaries available for desktop operating systems.
- make myGovID binaries available as a direct download and F-Droid.
- publish checksums or cryptographic signatures of myGovID binaries.
- release myGovID as free software. publish source code and documentation.
- make the build of myGovID reproducible: https://reproducible-builds.org/


ATO's response
--------------

Response:
- the old AUSkey system was hardcoded to expire on 2020-03-27.
- each AUSkey was assigned to a business, not an individual.
- each myGovID is unique to an individual.
- AUSkey credentials were forgotten or misused (eg: shared to others).
- a recent smartphone is required for crypto and biometric capabilities.
- the smartphone is required only for login; PCs can be used thereafter.
- people who buy a smartphone just for myGovID may claim a tax deduction.
- "The Australian Government is serious about safety and privacy online."
- "myGovID is accredited under the Australian Trusted Digital Identity 
Framework ..."
- ("source code" mentioned but no further comment)
- people unable to use myGovID have options including paper lodgement.


Full text
=========

Thank you for letting us know about your concerns in regards to the
transition from AUSkey to myGovID and Relationship Authorisation
Manager.

Providing us with your concerns gives us an opportunity to improve our
services to you and the community.

We would like to provide some information to provide clarity about the
AUSkey transition and myGovID.

The AUSkey system was built over 10 years ago and each AUSkey today
has a hard coded expiry date which cannot be extended beyond the 27th
March 2020. The system has not kept pace with modern advances in
technology or expectations of the community, and there are a number of
issues, including:

  - not compatible with most modern internet browsers,
  - needing a separate AUSkey for every business a person acts on
    behalf of,
  - it is locked down to a PC, not available on mobile devices, and
  - is difficult to install and recover when a password is forgotten.

In addition to user irritants there are significant issues with the
AUSkey system, including misuse such as sharing credentials and
passwords which compromises the integrity of the ATO’s online
environment.

As a result, the ATO are moving away from desktop and/or browser
authentication and all users will need their own compatible smart
device to use myGovID. Accessing myGovID via a smart device allows
use of the identification and security features provided by the smart
device - like fingerprint and face verification. The myGovID app
allows a user to logon to, and transact from any device and commonly
supported browser. myGovID is only required for the logon step and
a user can continue to use their PC or laptop when accessing online
services.

A compatible smart device is required to use myGovID (an iOS or
Android based mobile phone or tablet) and we recognise that some users
may need to upgrade their device. The cost of purchasing a new device
starts at less than $100. Please note if an individual is required to
obtain a new smart device and use it for work purposes, they may be
able to claim a deduction if they:

  - Pay for these costs themselves, are not reimbursed and
  - Have records to support their claims.

The amount and type of deduction they can make will depend on what
they use their smart device for. If they have bought a smart device
and they use it for work, they can claim a deduction for a percentage
of its cost. If they use their smartphone for private use and work
related activities, they will need to determine the percentage of
use related to their business to calculate any claim for allowable
deductions. They can locate further information about ‘Claiming
mobile phone, internet and home phone expenses’ on the ATO website
by entering QC 46119 into the search bar at www.ato.gov.au 
<http://www.ato.gov.au>

The Australian Government is serious about safety and privacy online.
As part of the ongoing commitment to security in a constantly evolving
digital economy, AUSkey and Manage ABN Connections (MAC) will
officially be decommissioned end of March 2020. myGovID is a digital
identity credential that is unique to an individual. Individuals will
access their myGovID via their smart device when logging into online
government services for both personal and business/work purposes.

The app is designed to run on modern and secure operating systems, we
use secure cryptographic credentials to authenticate our users and
these credentials are further protected by their device biometric or
password. myGovID is accredited under the Australian Trusted Digital
Identity Framework which strictly controls how identity data is
collected, stored and used. When using government online services,
personal information won’t be shared without permission.

Thank you for your feedback regarding our source code. We’re
continually looking to improve the myGovID app with feedback like
yours.

For users who are unable to transition to myGovID and RAM, options to
fulfil tax obligations include:

  - lodgment through third party cloud-based business software,
  - the use of a tax or BAS agent,
  - phone lodgment (not available for all lodgment types), and
  - paper lodgment (not available for all lodgment types).

(omitted statements about COVID-19 and ending greeting)

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