The joint professional bodies’ advocacy on the policy design of the Tax Agent Services (Code of Professional Conduct) Determination 2024 (Determination) has concluded, with a range of submissions (some confidential) lodged. Focus has now shifted towards implementing the new Code of Professional Conduct obligations under the Tax Agent Services Act 2009 ("TASA") and helping tax practitioners comply with these changes.  

CA ANZ resources

CA ANZ has released a help sheet, Quality management resources – Tax Agent Services Act supplement which provide guidelines on what updates (and links to further TPB guidance) you can make to your existing system of quality of management including a list of additional changes to the proforma documents in the practice management toolkit for firms with staff.  

To assist with updating engagement letters, check out the Engagement letter tool.  

To assist with managing conflicts of interest, check out the Conflicts of Interest guide 2021.  

CA ANZ is also developing a range of member education products which will provide more practical detail on how to meet the new obligations under TASA. Check out our Sharing Knowledge webinar recordings “Tax Agent Services Act Changes” on 2 March 2025 and “Annual Professional Standards Roadshow online 2025” on 5 March 2025 and Special tax topic webinar “Tax Agents Service Act (TASA) Developments”.

Background  

On 2 July 2024, the Assistant Treasurer Stephen Jones MP registered the Determination which introduced 8 new obligations under the Code of Professional Conduct. Key concerns with the Determination raised by tax practitioners included:  

• The application date for the new obligations of 1 August 2024  
• The positive duty on tax and BAS agents (together, tax practitioners) to notify the ATO of a material false, incorrect or misleading statement where it was prepared by the practitioner if the client does not agree to correct it - known as the ‘dob-in’ provision (section 15(2)) 
• The obligation to keep current and prospective clients informed of ‘any’ matter that could significantly influence a decision of a client to engage them (section 45).  

CA ANZ advocacy  

CA ANZ efforts involved direct engagement with Assistant Treasurer Stephen Jones MP (including a joint letter to the Assistant Treasurer) and politicians in both Houses of Federal Parliament.  

The Assistant Treasurer acknowledged some of our concerns and initially amended the Determination to delay the application date of the Determination to:  

• 1 July 2025 – for tax practitioners with 100 or less employees as at 31 July 2024 (including new tax practitioners that register between 1 August 2024 and 30 June 2025)
• 1 January 2025 – for any other tax practitioners.  

CA ANZ remained concerned about the Determination and Chartered Accountants were urged to engage directly with their MPs to support the withdrawal or disallowance of the Determination. CA ANZ aired member concerns in the media.  

The Government acknowledged that some amendments were needed and CA ANZ made this statement. Subsequently a Parliamentary Motion to disallow the Determination was withdrawn on 9 October 2024.  

Key changes  

Although the joint professional bodies called for the dob-in provision to be removed, the Government insisted they remained but introduced amendments which require a high threshold before the dob-in provision is triggered.  

Only matters that cause or may cause "substantial harm", as defined by the non-compliance with laws and regulation (NOCLAR) provisions of Accounting Professional and Ethics Standards (APES 110), are required to be reported if they also satisfy other criteria – such as being a material matter that is a result of intentional disregard or recklessness as to how the law is applied.  

The requirement for tax practitioners to report ‘any matter’ to their clients or potential clients, has now been significantly revised so that only particular listed significant matters are to be reported.  

The amending determination also made some refinements to sections 20, 25, 30 and 40 to remove ambiguity and clarify the scope, operation and intent of the provisions.  

Implementing the new obligations  

The Tax Practitioners Board (TPB) website lists all the obligations under the Code of Professional Conduct on a webpage with links to the relevant guidance material.  

The 8 new obligations relate to:  

• Upholding and promoting the ethical standards of the tax profession  
• False or misleading statements  
• Conflicts of interest in activities undertaken for government  
• Maintaining confidentiality in dealings with government  
• Keeping of proper client records  
• Ensuring tax agent services provided on your behalf are provided competently  
• Quality management systems  
• Keeping your clients informed.  

The TPB has published finalised guidance products which explain how the 8 new obligations will apply.

• TPB(I) 44/2024 Upholding and promoting the ethical standards of the tax profession
• TPB(I) 45/2024 False or misleading statements  
• TPB(I) 46/2024 Managing conflicts of interest when undertaking activities for government and maintaining confidentiality in dealings with government  
• TPB(I) 47/2024 Obligation to keep proper client records of tax agent services provided  
• TPB(I) 48/2024 Supervision, competency and quality management under the Tax Agent Services Act 2009
• TPB(I) 49/2024 Keeping your clients informed.

CA ANZ had participated in the consultations and lodged its submission for the draft versions of the guidance. We stressed the need for a pragmatic approach as our members were concerned that the guidelines would add substantial risk and compliance costs to their business operations and translate into higher fees.

The TPB's collaborative work with stakeholders to support tax practitioners will be ongoing and it will include developing practical guidance and case studies addressing the variety of tax practitioners, from sole practitioner to large firms.

Note that CA ANZ has already lodged a range of submissions with the TPB during 2024 on related tax agent regulation topics which are available on the CA ANZ website.