23/03/2007
An ATO Update on Changes to Legislation
Update on legislation from the ATO Commissioner
Tax Practitioner Legislative Framework
Last year, the Assistant Treasurer Peter Dutton announced that the Government would provide funding of $57.5 million over four years for the implementation of a new legislative framework for tax practitioners.
The Government is looking to introduce the bill for the new framework this year and (through Treasury) will be publicly consulting on draft legislation and explanatory materials in the near future.
The new legislative framework aims to improve the long term viability of the tax practitioner services industry. Promoting professionalism within the industry will provide greater confidence and consumer protection for taxpayers.
The new regime will completely replace the current regulatory regime, which was first introduced in 1943. Since then, the economy, tax environment and regulation has changed substantially. A much larger proportion of taxpayers now use the services of tax practitioners to help them lodge their tax returns and comply with their tax obligations.
The new legislative framework will support and assist the regulation of the profession. Key elements of the new regime are:
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a national Tax Practitioners Board will be established to replace the existing state-based Tax Agents’ Boards,
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entities that provide BAS services will be regulated under the new framework,
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a legislated Code of Professional Conduct will govern the provision of tax practitioner services,
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the new Board will have access to a greater range of disciplinary sanctions, that can be applied more flexibly, to better regulate those working in the tax practitioner industry,
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the new framework, together with the additional funding, will provide the new Board with an enhanced ability to undertake proactive regulatory work, and
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taxpayers will no longer be liable for tax shortfall penalties if they use a registered tax agent, provide the tax agent with the necessary information, but the agent makes a careless mistake.
The Tax Office, in conjunction with tax professional associations, including the TIA, has been working with Treasury to complete the design of the framework. We are continuing to develop the basis for the administrative support for the new framework.
With the release of the draft legislation and explanatory materials for public consultation imminent, I would encourage everyone to examine the materials and provide Government with your considered views.
