Last minute reprieve for tax agents — Code changes postponed

1 Aug, 2024

Written by: Letty Chen | Senior Tax Writer

On the eve of the commencement of the contentious Code of Professional Conduct changes for registered tax and BAS agents, the Government has postponed the start date of the new obligations.

On 2 July 2024 the Assistant Treasurer, Stephen Jones, registered the Tax Agent Services (Code of Professional Conduct) Determination 2024 which introduces eight new obligations into the Code of Professional Conduct for registered practitioners (Tax Agent Services Act 2009).

All eight new obligations have a start date of 1 August 2024. The Tax Practitioners Board (TPB) announced on 11 July that it will commence consultation on draft guidance. It subsequently noted in an FAQ document issued on 18 August that draft guidance is anticipated to be released in early September — over a month after the start date.

The lead time of a mere four weeks coupled with a lack of definitive regulator guidance on how to comply with the additional obligations caused much consternation and confusion amongst the practitioner community.

As a result of the joint advocacy efforts by Australia’s tax and accounting professional bodies (the Joint Bodies), on 31 July the Assistant Treasurer advised the Joint Bodies in writing that he will insert a transitional rule to provide new dates for practices to bring themselves into compliance:

  • firms with 100 or fewer employees — 1 July 2025
  • firms with 101 or more employees — 1 January 2025.

These extensions apply so long as the practice continues to take genuine steps towards compliance during the transitional period.

The Assistant Treasurer noted that, following advice from Treasury and the TPB, he was of the view that the concerns raised by the Joint Bodies ‘can be effectively addressed through the finalisation of guidance without further changes to the Determination’. The transitional rule is being introduced in recognition of the importance of the TPB’s guidance material.

The Assistant Treasurer further noted that he will engage with stakeholders if it should become clear to the government during the process to finalise guidance that it is critical that changes be made to the Determination.

Other related articles

New Code obligations for tax agents

TPB’s transitional approach for new Code obligations starting 1 August

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