Industry Groups Call for Renegotiation of Tax Agent Services’ Code of Professional Conduct

Peak accounting and bookkeeping organisations in Australia are urging Assistant Treasurer Stephen Jones to reconsider a new set of industry rules that are set to come into effect on August 1. These changes, outlined in a legislative instrument signed by the Assistant Treasurer on July 1, aim to enhance confidence in the tax system and minimize misconduct among tax and accounting professionals.

The industry groups, including CPA Australia, the Institute of Public Accountants, and the Institute of Certified Bookkeepers, have raised concerns about the new obligations, stating that they could impose significant compliance burdens on tax practitioners who already adhere to the Code of Professional Conduct.

One of the contentious changes under question is a rule requiring tax practitioners to disclose “any matter” that could significantly influence a client’s decision to engage the accountant or bookkeeper. This rule, which also covers matters dating back to July 1, 2022, has raised alarm among accountants and bookkeepers who feel it places an impracticable requirement on them.

Additionally, updated rules around confidentiality, including the requirement to flag any false, incorrect, or misleading statements made to the Tax Practitioners Board or the Commissioner of Taxation, have also posed challenges for professionals in the industry.

The industry groups are calling for the Assistant Treasurer to withdraw the current legislative instrument, reopen consultation over the rules, and push back their start date by six months to allow for effective implementation. They argue that the August 1 deadline will be particularly challenging for professionals already dealing with tax-time workloads.

While there is support for the intent behind the reforms to protect the sector’s professional integrity, the organisations are seeking more clarity and guidance on the new obligations to ensure compliance without unnecessary disruption and confusion.

As the Tax Practitioners Board is currently consulting on draft guidance related to the legislative instrument, the industry groups are urging for more time and guidance to be provided to tax practitioners before the new obligations come into effect.