Thank you for joining Peter de Cure (TPB Chair) and Matthew Addison (Tax Practitioner Governance and Standards Forum Co-Chair), at the combined Tax Practitioner Governance and Standards Forum (GSF) and Consultative Forum (CF) held on Wednesday 1 May 2024. 

We appreciate your valuable input and have produced a summary of the key messages from the meeting, below.

Opening remarks and introductions

The Co-Chairs welcomed everyone to the GSF. The following organisations were represented:

• Australian Bookkeepers Association
• Association of Chartered Certified Accountants
• Association of Independently Owned Financial Professionals
• Australian Institute of Quantity Surveyors
• Chartered Accountants Australia and New Zealand
• Corporate Tax Association
• CPA Australia
• Financial Advice Association Australia
• Institute of Certified Bookkeepers
• Institute of Chartered Accountants in England and Wales
• Institute of Public Accountants
• Law Council of Australia
• NTAA PLUS Ltd
• SMSF Association
• South African Institute of Chartered Accountants
• Stockbrokers and Investment Advisers Association
• The Tax Institute
• The Australian Taxation Office (ATO)
• The Professional Standards Authority
• Tax Practitioners Board.

The GSF and CF is one of the TPB’s primary mechanisms for the TPB to consult with key stakeholders, in particular the professional associations. Depending on timing, confidentiality requirements and other requirements, consultation will take various forms. 

Notwithstanding this, to ensure that measures are designed, communicated and implemented in the most effective and efficient manner, consistent with policy objectives, the TPB and external members of the GSF and CF seek to:

• consult in a manner that facilitates open, frank and transparent discussions by all parties
• ensure that consultation occurs on an ongoing and frequent basis, where possible, with key issues being re-visited and workshopped as required throughout the consultation process
• consult as early as appropriate, allowing participants with adequate time to prepare and to understand key issues, undertake independent research and have the opportunity to provide meaningful input that can be incorporated into the design of the relevant matter.

Reform measures and Government consultation update

Treasury representatives attended the meeting to provide the GSF and CF with an update in respect of the various reform measures and Treasury or Government led consultations affecting the tax profession. 

A status update, as at 9 May 2024, in relation to Treasury consultation of relevant reform measures, is as follows: 

External GSF and CF members expressed a strong desire to engage with Treasury on reform matters as early as possible in the development process.

Measures arising from Treasury Laws Amendment (2023 Measures No. 1) Act 2023

The TPB provided an implementation update in respect of a number of measures introduced by the Tax Agent Services Act 2009 by the Treasury Laws Amendment (2023 Measures No. 1) Act 2023, as follows:

Disqualified entities

• The TPB has received a small number of applications for approval to engage a disqualified entity, with one application approved on the basis of the current circumstances of the disqualified entity who had previously had their tax agent registration terminated. 
• In respect of the TPB’s policy guidance, the TPB is still considering the submissions it received through the public consultation period and expects to publish the final guidance soon. GSF and CF members noted that practical guidance in respect of the reasonable steps tax practitioners should take to ascertain whether an entity is disqualified would be welcomed. 

Breach reporting

• The TPB noted that on 30 April, the TPB released its draft guidance on the operation of the new breaching reporting requirements for a 4-week public consultation period.
• The TPB thanked external GSF and CF members for their early input in shaping and informing TPB’s draft policy guidance. The TPB reiterated that while some feedback was not reflected in the draft guidance that was issued for public consultation, this feedback will be further considered through the public consultation period.
• GSF and CF members noted that further case examples of breaches that are reported to the TPB but not taken further (i.e. either through lack of evidence or significance) to help tax practitioners understand the types of matters that they should report would be helpful.
• GSF and CF members are keen to have ongoing engagement with the TPB throughout the development process in relation to the guidance to support the breach reporting requirements. 

Annual registration

• The TPB advised that it is on track to implement annual registration from 1 July 2024.
• The TPB continues to be committed to ensuring that the renewal of registration process is as streamlined and efficient as possible while maintaining appropriate standards.
• The TPB confirmed that the application fee amounts were still subject to consideration by Government.
• Following feedback from the external GSF and CF members, the TPB committed to increasing engagement with tax practitioners and professional associations to ensure support for the transition to annual registration from 1 July 2024.

Treasury Laws Amendment (Tax Accountability and Fairness) Bill 2023

As Treasury Laws Amendment (Tax Accountability and Fairness) Bill 2023 is under consideration by the Senate Economics Legislation Committee and yet to be passed by Parliament, the GSF and CF had a general discussion about key aspects, and implementation, of the proposed law changes. 

Information sharing by the TPB and ATO with prescribed disciplinary bodies

• All GSF and CF members discussed a desire to enhance how the professional bodies and regulators, such as the TPB, could work closer together to ensure that standards are upheld, compliance efforts and outcomes are coordinated and complaints processes are streamlined.
• The group agreed that further discussions are needed to establish a shared vision of how the co-regulatory relationship between professional bodies, regulators and Government could be enhanced moving forward.
• Enhanced co-regulation and information sharing between professional bodies, the ATO and  the TPB will need to be accompanied by appropriate coordination and reciprocity to ensure the best outcomes are achieved.

Enhanced tax whistleblower protections 

• TPB noted that if enacted, the ATO and TPB will implement these protections to ensure that there is a ‘no wrong doors’ approach to allow tax whistleblowers protection regardless of whether they report a matter to the ATO or the TPB.
• Members raised concerns about potential inconsistency in how the whistleblower protections operate with the new breach reporting obligations.

Expanded information on the TPB’s public register 

• Members noted that the key purpose of the TPB’s public register is consumer protection. The measures contained in the Bill ultimately expand the information that can (or must) be displayed on the register, ensuring that consumers are provided with more fulsome information to inform their decisions when it comes to engaging registered tax practitioners.
• TPB noted that it is ensuring that it has the appropriate IT infrastructure to implement the expanded public register if the Bill is enacted.

Other reform matters

The following additional reform matters were also discussed:

TPB’s updated guidance products to address new Code items

• While recognising that the Tax Agent Services (Code of Professional Conduct) Determination 2023 is still in draft format and has not yet been registered, the TPB noted that work has been undertaken to scope appropriate updates to the TPB’s guidance products to ensure that there is corresponding guidance to support the new Code items, once finalised and applicable, 
• The external GSF and CF members welcomed this approach by the TPB and the TPB advised it would seek to publish this work program as soon as possible. 

BAS services repeal instrument

• It was noted that the Treasury Laws Amendment (2023 Measures No. 1) Act 2023 amended section 90-10 of the TASA to include in the definition of a BAS service the additional services outlined in Tax Agent Services (Specified BAS Services No. 2) Instrument 2020. As such, the TPB would draft and register a repeal instrument, as it will no longer be required. 
• External GSF and CF members indicated that they were comfortable with this proposed approach, noting that there will not be any practical impact for registered BAS agents. 

Superannuation Guarantee (SG) and Superannuation Guarantee Charge (SGC)

• Members sought an update on the ability of BAS agents to act for entities in relation to SG and SGC noting functionality issues with ATO systems limiting the ability of BAS agents  having visibility of SG & SGC forms and information for a taxpayer.
• The ATO advised that it understands that this is an ongoing irritant, and the team responsible for Pay Day Super initiatives are aware of the current system access limitations and continue to investigate this issue as part of their scoping and design.
• The TPB confirmed that there is no legislative impediment in the TASA limiting the information BAS agents can have access to in order to provide services to clients.

ABR services and BAS agents

• Members sought an update about ensuring that BAS agents are permitted to assist all entities with the ABR registration of entities. 
• TPB advised that it is considering whether the services are BAS services and if they are not, whether it is appropriate to define them as such via legislative instrument, to allow BAS agents to lawfully assist entities with ABR registration. 

Client agent linking and proof of identity requirements

• Members raised that there is ambiguity as to whether utilising client agent linking when onboarding a new client will satisfy the TPB’s minimum proof of identity requirements. 
• The ATO and TPB acknowledged that there is ambiguity with how client agent linking interacts with the TPB’s minimum proof of identity requirements. This issue will be considered further before a settled position is communicated to members.

Concluding remarks

Members were thanked for their time and contributions during the meeting. Given the Government’s reform program impacting the tax profession, it was agreed that future targeted and frequent meetings will be appropriate.