The Government has released the long-awaited Exposure draft legislation and Explanatory materials for amendments to the Sanction powers of the Tax Practitioners Boards (TPB). 

The draft legislation proposes to:

• introduce criminal penalties for unregistered tax return preparers
• increase the maximum amounts for civil penalties to 2,500 for individuals (up from 250), and to 50,000 penalty units for corporations/significant global entities (up from 1,250)
• introduce infringement notices for alleged breaches of some civil penalty provisions and specified breaches of the Code of Conduct
• allow contingent and interim suspensions of registration for certain serious misconduct
• introduce new civil penalties for:
  • breaches of the Code of Professional Conduct by registered tax practitioners generally
  • false or misleading statements by unregistered preparers
• enable enforceable voluntary undertakings
• extend the maximum period before a terminated practitioner can reapply for registration from 5 years to 10 years.

CA ANZ will be preparing a submission to the Treasury on the draft law and materials. It will likely be a joint submission with the other professional bodies. There is a very short two-week consultation period. Submissions are due by Friday 24 April 2026.