The federal government has pushed back the date for the commencement of an expanded code of conduct for registered tax agents from 1 August to two options in 2025 dependent on the size of the firm.
In a letter to 10 industry bodies and associations, Assistant Treasurer and Minister for Financial Services Stephen Jones announced the deferred dates for compliance with the additions to the Code of Professional Conduct overseen by the Tax Practitioners Board (TPB) and contained in Tax Agent Services (Code of Professional Conduct) Determination 2024.
“Following advice from Treasury and the TPB, I am of the view that the concerns that you have raised can be effectively addressed through the finalisation of guidance without further changes to the determination,” Jones stated in the letter, referencing concerns raised by the joint bodies in mid-July.
“However, given the importance of the TPB’s guidance material, I will insert a transitional rule into the determination that will provide firms with 100 employees or less until 1 July 2025 and larger firms with 101 employees or more until 1 January 2025 to bring themselves into compliance with these new obligations, so long as they continue to take genuine steps towards compliance during this period.
“Should it become clear to the government during the process to finalise guidance that it is critical that changes be made to the determination, I will engage constructively with you and other stakeholders.”
The SMSF Association welcomed the deferred commencement dates, noting it would provide the TPB with the time required to develop and consult on their guidance.
“This will be essential to support and assist firms in meeting their compliance obligations. It will also ensure that firms have sufficient time to understand their obligations, to review and, if necessary, update their current policies and procedures to comply with the code,” the association stated in a communication to members.
“With the determination scheduled to commence today, these are welcome changes and the result of the ongoing advocacy of the joint bodies.”
Chartered Accountants Australia and New Zealand (CAANZ) stated moving the timeframe did not address some of the issues raised by the industry bodies when the determination was introduced at the start of July and CAANZ chief executive Ainslie van Onselen called for it to be withdrawn and rewritten.
“Section 45 requires tax professionals to advise all current and prospective clients of ‘any matter’ dating back to 1 July 2022 that could ‘significantly influence’ a decision of a client to engage with them, but there is no clarity regarding what ‘any matter’ must cover,” van Onselen said.
“Section 15 of the determination requires tax practitioners to ‘dob in’ clients where there is a refusal to correct a material false, misleading or incorrect statement.
“This provision discourages clients from having frank and open discussions with tax practitioners and could worsen tax compliance. This section has not been subject to consultation, having been added post the consultation round in December-January.”
