BAS AGENT - what it means

CONCEPT based on Tax Agent Services Bill 2008

4th February 2009

(You can download the PDF of this article - click here)

WHO?

Only registered "BAS Agents may provide "BAS Services for a fee.

"for a fee  means the law d"s not apply to employees or the business owners, only to contract bookkeepers etc.

WHAT?

Sn. 90‘10  Meaning of BAS service

(1)    A BAS service is a *tax agent service:

         (a)  that relates to:

         (i) ascertaining the liabilities, obligations or entitlements of an entity that arise, or could arise, under a *BAS provision or

         (ii) advising an entity about the liabilities, obligations or entitlements of the entity or another entity that arise, or could arise, under a BAS provision or

             (iii) representing an entity in their dealings with the Commissioner in relation to a BAS provision and

         (b) that is provided in circumstances where the entity can reasonably be expected to rely on the service for either or both of the following purposes:

             (i) to satisfy liabilities or obligations that arise, or could arise, under a BAS provision

             (ii) to claim entitlements that arise, or could arise, under a BAS provision..

(2)    A service specified in the regulations for the purposes of this subsection is not a BAS service.

BAS Provisions can be understood to be completion of the Payable amount boxes on the BAS

   ·   GST amount collected or paid                    ·  FBT Instalment amount or credit claim

·      WET payable or refundable amounts         ·  Luxury Car Tax amounts

·      Fuel Tax Credit amounts                             ·  PAYG Withholding amount payable

·      PAYG Instalments amount payable

WHAT THE NEW WORLD WILL LOOK LIKE!

• One national Tax Practitioners Board, independent of the ATO, administers and registers tax agents, BAS Agents and specialist (restricted) agents 

• Tax Agents are able to advise, interpret and work with all elements of Tax Law

• BAS Agents are able to advise, interpret, and work with clients completing the BAS Provision obligations.

• Restricted Agent licences will be granted to specialist advisors such as Payroll, customs and Research & Development.

• Agents will have access to the ATO tools and resources and preferential contact points.

• BAS Agents will have been recently formally qualified, experienced and competent to assist with the BAS Provisions.

• BAS Agents will have Professional Indemnity Insurance

• BAS Agents must continually update their knowledge and competence through continuing education.

• People who are not registered as Agents must NOT: advise, represent the client, interpret the legal application of tax for a client, provide tax advice or assistance, be relied on for their tax advice or assistance.

• A person may be in a business where they are subject to necessary supervisory arrangements by another registered agent

• Non-BAS Agents can provide bookkeeping services but not GST or BAS Expertise.

Requirements for registration as a BAS Agent*

• 1400 hours relevant experience within the last 3 years

• Have the required "educational qualification or voting member of Accounting RPA

• Be a "fit and proper person over 18 years

* note transitional provisions apply for the first 2 to 5 years

If you provide BAS services without registering penalties of $27,500, If you advertise BAS Services or pretend to be a BAS Agent penalty of $5500.

Client benefits in using Registered BAS Agent

Clients will benefit from removal of some penalties under certain conditions for either false of misleading statement or for late lodgement.

Obligations upon registered BAS Agents:

 ·   Adhere to the legislated Code of Professional Conduct:  Honesty and integrity, Independence, Confidentiality, Competence, etc.

 ·   Professional Indemnity Insurance - must be in place from "Start Date

 ·   Continuing Professional Development

 ·   MUST have appropriate systems and procedures in place especially if supervising staff.

What do I do now?

The absolute must for bookkeepers in practice is to be legal in the work you do today, for HOW to be a legal bookkeeper today,

Keep experience records: Various provisions in the proposed law require a record of "Relevant Experience.

How do I build up 1400 hours of Relevant Experience? We just don’t know for sure yet!  "work must have included substantial involvement in one or more of the kinds of BAS services described in section 90‘10 of the Act.

Where to from here? / What else should I research?

From www.icb.org.au home page -

	The BAS/BAS Agent Am I OK to compete the BAS at the moment, and what will I need for the future
	Insurance What sort of insurance to I really need and what should I watch out for?
	Certificate IV in Financial Services (Bookkeeping)