Institute of Certified Bookkeepers

While we noted the slight increase in fee reported as $100 to $135 and initially this didn't feel tragic, disappointing but not tragic:

However:

#The application category ‘does not carry on a business’ will no longer exist.

This little side note in the media release adds a considerable cost.

For each individual that works in an entity, their personal fee has increased by 170% (from $50 to $135)

Every BAS Agent who works in a partnership, trust (with non-individual trustee) or company previously registered the entity as the “in business” registration, a fee of $100 each 3 years.
If the business had only one registered agent individual they had the “not in business” registration, a fee of $50 each 3 years.

Now they have 2 fees of $135, so $150 just became $270 – an 80% increase in the 3 year renewal fee!

If you have two registered agent individuals in the business, the previous $200 just became $405 – over 100% increase!
For five Registered Agents in a multi-person practice, the $350 just became $810 – a 131% increase!

Is it really the intention of government to discourage multi-person practices to have more registered individuals within that practice? We would have thought not!

This is not good.

  • For Tax Agents, the above scenarios becomes 1 person practice from $750 to $1300
  • For 2 person practice $1000 becomes $1950
  • for 5 person practice $1750 becomes $4050
  • 50 person $13,000 becomes $25,500

We expect the level of concern will be significantly raised when people realise this increase.

ICB has proposed to the TPB and the Minister the above analysis, and included the following comments:

In an era where agents are under appropriate increased scrutiny on their competence and their expertise, in addition to the rapid technology changes requiring additional training and knowledge, this community is under significant stress and cost imposition. An increase in many businesses' registration fees of between 80% and 130% (as described in the above examples) seems unfair, if not unwarranted. We endorse the TPB taking on more activity in pursuing and prosecuting unregistered agents, as well as monitoring and ensuring the professional standards of registered agents are developed, and are pleased to see the increased budget allocation.

We observe that there has already been commentary in the BAS Agent community criticising this fee increase without noting the real increase behind this one small line.

We request that this increase be reconsidered.
We also note disappointment that this aspect of your proposed changes does not appear to have been canvassed nor explained.

  • 14 May 2018
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