Lack of consultation on new legislation could lead to unintended consequences for tax professionals: SMSFA
The SMSFA has expressed concerns that amendments to the Treasury Laws Amendment (2023 Measures No 1) Bill 2023 were accepted by the government last week without the usual consultation process.
It said this had sidelined key professional associations representing the tax and accounting profession.
The amendments will change the appointment process for members of the Tax Practitioners Board and require registered tax agents and BAS agents to notify the TPB of other agents they “reasonably believe” have committed a significant breach of the Code of Professional Conduct in the Tax Agent Services Act 2009 (TASA).
The SMSFA stated that unlike other laws, including the Corporations Act 2001, these amendments lack any protections usually afforded to those who are the subject of false or unfounded allegations, or for claims for lost revenues against someone who made an allegation.
The SMSFA and joint bodies including the Chartered Accountants Australia and New Zealand, CPA Australia, the IPA, The Tax Institute, the Australian Bookkeepers Association, The Institute of Certified Bookkeepers, and the Financial Advice Association of Australia wrote to Assistant Treasurer Stephen Jones to express concerns with these latest amendments to Schedule 3 to the Bill.
These concerns were tabled by the Greens on 8 November 2023.
“The original amendments in Schedule 3 to the Bill are intended to improve the effectiveness and independence of the TPB, enhance community confidence, and support high standards in the tax profession while streamlining the regulation of tax practitioners,” Matthew Addison, co-chair of the TPB’s Tax Practitioner Governance and Standards Forum (TPGSF), said on behalf of the Joint Bodies.
“While the government consulted widely on the original proposed amendments earlier this year, there has been no consultation with stakeholders on the Greens’ latest amendments, nor has an accompanying explanatory memorandum been provided to give further guidance on the changes.”
Mr Addison said the joint bodies strongly suggest that targeted consultation with key stakeholders be immediately undertaken to ensure the provisions operate as intended, adding that any resulting changes as part of the second tranche of legislative changes to the TASA should be included.
The joint bodies’ stance is that consultation should be undertaken for all significant changes to the law.
“Poor tax law design and lack of consultation can often lead to poor or unintended outcomes for everyone involved, which is why the usual process of parliamentary consultation is in place and should have been followed in this case,” Mr Addison.
“Any amendments to the law must consider all impacts and become good law, based on sound and considered policy.”
