New government measures that will expand the code of conduct for registered tax agents have been met with concern from industry bodies, which have noted the lack of consultation on the changes and the speed at which they are being implemented.
The new additions to the Code of Professional Conduct overseen by the Tax Practitioners Board (TPB) were signed into a new legislative instrument by Minister for Financial Services Stephen Jones as part of his ministerial powers on 1 July and will apply from 1 August.
The new instrument, the Tax Agent Services (Code of Professional Conduct) Determination 2024, adds eight new additional obligations to the code, with Chartered Accountants Australia and New Zealand (CAANZ) stating some will would be hard to comply with as they currently stand.
“Our members are very concerned about the obligation to keep their current and prospective clients informed of ‘any’ matter that could significantly influence a decision of a client to engage them,” CAANZ advocacy and international development group executive Simon Grant said.
“Any matter can include matters of a private nature like health, religion, sexual orientation, political persuasion or even sporting affiliations, to name a few. This seems very far reaching and the profession needs further clarification from the TPB.
“There is also a new obligation, which the profession was never consulted on, that now appears in the Code Determination which would require a registered tax agent to report a client to the ATO if there is an unintended material omission in a return that the agent prepared, but the client does not agree to correct or does not correct it in a reasonable time.
“We believe that this change goes against the fundamental confidentiality obligation written into the code that our members already comply with when it comes to disclosing client information without the client’s permission.
“It will create unnecessary disruption and confusion for tax practitioners acting lawfully in the best interests of their client.”
The SMSF Association was also opposed to the new determination and called for further consultation on the additional code obligations with input from the TPB.
“We are deeply concerned with the extremely short lead time from registration to commencement on 1 August 2024. This timeline is unrealistic and impractical, failing to provide sufficient time for the TPB to adequately prepare and consult on its guidance,” SMSF Association head of policy and advocacy Tracey Scotchbrook said.
“TPB guidance will be an essential tool in supporting tax agents’ understanding, implementation and compliance with these amendments.”
Scotchbrook added tax agents should still take action before 1 August to comply with the changes, noting it was imperative they integrate the new obligations into their work without delay.
