07/08/2007
Response to the concepts in the BAS Service Provider Legislation (7/8/07)
The Institute of Certified Bookkeepers supports the intention of Government in attempting to recognise and assist those competent bookkeepers who are working to assist small business with meeting their BAS & GST obligations. The interpretation of GST law and provision of certainty about the correctness of a BAS to be lodged with the ATO should be provided by appropriately experienced and competent people, to be known as BAS Service Providers.
BUT AT WHAT COST?
The current draft of the legislation will cause more problems to businesses meeting their BAS lodgement obligations. Over 12% of bookkeepers indicate their direct intention to stop providing BAS & GST assistance to business (based on recent responses from 500 attendees at the ICB BSP information sessions). The governments own research indicates the stereotypical bookkeeper is part-time, female, kids at school, working for between 15 and 20 clients. Their total gross income of approximately $30,000 per year, compare that to the estimated additional $4000 for a bookkeeper to now meet all the obligations of being a registered BSP and not surprisingly the bookkeeper is reluctant to enter the system. The consequences: Reverting to business owners doing their own BAS is not a step forward in accuracy or expertise. More BAS work being pushed to accountants is a increasingly costly exercise. Government intention must remain: no further red tape and no increase cost of compliance to small business. This recognition of BAS Service Providers must result in the assistance to bookkeepers and the improvement in the industry NOT the increase in cost and burden!
ICB SUPPORTS the concept that if you with to present yourself as a bookkeeper providing interpretation and expertise to business then you must be of an appropriate standard and have and continue to have up-to-date knowledge and ongoing education. However the government must financially and practically support the entry of bookkeepers into this type of environment.
If a bookkeeper doesn’t know what they are doing then they shouldn’t do it. They must seek assistance to ensure the client is protected. Bookkeepers are competent and should prove their competence to clients. Businesses can assist their bookkeepers by becoming a Business Member of ICB – providing access to bookkeeping assistance for their employees and access to our practical skills assessment. ICB then provides access to training providers to enhance the skills of all bookkeepers.
Bookkeepers are not putting business at risk. A complicated GST & BAS system requires a government supported system to enhance skill levels, not a big threatening stick.
The draft legislation requires further clarification and protection of the bookkeeper, the business and therefore be an assistance to taxpayers meeting their obligations.
