Issued: 23 July 2024
Last modified: 25 October 2024
There are significant changes to the Tax Agent Services Act 2009 (TASA), with many applying from 1 July 2024. These changes were introduced by the government to implement recommendations arising from a 2019 independent review into the effectiveness of the Tax Practitioners Board (TPB) and the TASA. Some of these changes are also responsive to other reforms announced by the government.
The changes affecting you include:
- Moving to an annual registration period
- Additional Code of Professional Conduct (Code) obligations
- Breach reporting obligations
- Whistleblower protections
- Extending the period of TPB investigations.
Moving to an annual registration period
The move to an annual registration cycle better ensures we have greater ongoing visibility of tax practitioner registrations, increasing consumer confidence. Annual registration has removed the requirement to submit an annual declaration.
For further information refer to Annual registration is coming.
Additional Code obligations
From 1 January 2024 the Code was expanded to include a new item allowing the Minister to determine new obligations through a legislative instrument. This was introduced to enable swift action to respond to and address emerging or existing tax practitioner behaviours and practices.
Following public consultation on the draft Code Determination, the Tax Agent Services (Code of Professional Conduct) Determination 2024 (Determination) was registered on 2 July 2024. On 8 October 2024, amendments to the Determination were made following stakeholder feedback and to provide clarity on the intent and scope of the additional obligations under the Determination.
This Determination introduces 8 additional Code obligations which are all consistent with the existing key principles and broader objectives of the Code. Further, these obligations reinforce the high professional and ethical standards expected of tax practitioners by the community.
The government has introduced a transitional rule to delay the commencement of the new obligations to:
- 1 July 2025 – for tax practitioners with 100 or less employees as at 31 July 2024, including new tax practitioners (with 100 or less employees) that register between 1 August 2024 and 30 June 2025 inclusive; and
- 1 January 2025 – for any other tax practitioners.
The delayed commencement will provide a reasonable time for tax practitioners to develop, implement and update systems and processes necessary to meet their obligations by the relevant commencement date.
Our immediate focus is to finalise our guidance, through consultation, and to support and assist tax practitioners by raising awareness of the new obligations so you understand what is required of you.
We will also be providing other resources, including hosting webinars, covering the new obligations to assist tax practitioners.
Refer to FAQs – Code Determination for further information about these new obligations and our approach to implementing these requirements.
Breach reporting obligations
From 1 July 2024 you are required to report significant breaches to the Code relating to your own conduct and that of other registered tax practitioners to us. If the breach is by another registered tax practitioner, you must also report the breach to the recognised professional association (RPA) of the tax practitioner.
Breach reporting is another important reform introduced by the government to strengthen the tax and regulatory system, and address misconduct from timely data and intelligence obtained.
Breaches must be reported in writing within 30 days of when you have, or ought to have, reasonable grounds to believe that a significant breach has occurred.
For further information refer to Breach reporting.
Whistleblower protections
Under the new whistleblower laws from 1 July 2024, we are able to receive disclosures of information from eligible whistleblowers. This means, individuals who disclose information to us about a related entity where it assists us to perform our functions or duties under the TASA will qualify for whistleblower protection.
Whistleblowers play a critical role to help detect and regulate unethical and malicious practices in the tax profession or scheme promoters that would be harmful to the public or undermine the Australian tax system. Previously, there has been no whistleblower protection for individuals for disclosing information to us, opening them up to significant personal and financial risk.
The new reforms will not only protect eligible whistleblowers (for disclosures made from 1 July 2024) but will also help us to regulate the tax profession better and in turn, protect the public and the integrity of the tax system.
For further information about these new laws, refer to Whistleblower legislation.
Extending the period of TPB investigations
As part of the TASA and TPB reforms, we have greater flexibility to conduct investigations into suspected breaches of the TASA, including the Code, by extending the timeframe for investigations. The timeframe to make a decision about the outcome of an investigation has been extended to a 24-month period (from a 6-month period) from 1 July 2024. This additional time will allow us to properly consider complex matters more fully. The timeframe can be extended further if due to reasons beyond our control a decision cannot be made within 24 months.
This change will enable us to conduct more fulsome investigations on suspected breaches of the TASA, including the Code.
For further information about our investigation process, refer to Investigations.
Keep up to date
To stay tuned, subscribe to TPB eNews, attend our webinars and follow us on our social media channels – Twitter, LinkedIn, Facebook and YouTube.