Tracey Scotchbrook, head of policy and advocacy for the SMSFA, said the association has urged the government to renew consultation on the additional code obligations added to the determination.
Minister for Financial Services Stephen Jones signed the new legislative instrument expanding the code of ethics applicable to registered tax and BAS agents on 1 July.
The determination sets out additional professional and ethical obligations for registered tax agents. These include obligations:
- To uphold and promote the code and to not engage in conduct that may undermine public trust and confidence in the integrity of the tax profession or tax system.
- In relation to false or misleading statements to be made to the TPB or the Commissioner of Taxation.
- Requiring tax practitioners to take reasonable steps to identify, document, disclose, manage, mitigate, and, as appropriate, avoid material conflicts of interest related to their dealings with Australian government agencies.
- Requiring tax practitioners to keep correct records of all tax agent services they provide, or which are provided on their behalf, to each of their clients, including former clients.
- To ensure tax agents’ services are provided competently.
Scotchbrook said this means the code will now reside in the Tax Agent Services Act 2009 (Cth) and the new determination.
“In December 2023, Treasury released an exposure draft of the proposed changes for consultation. The SMSFA was one of nine associations in a Joint Bodies working group, representing members across the accounting, bookkeeping, financial planning, superannuation, and taxation professions,” she said.
“The Joint Bodies participated in discussions and consultations with Treasury and the TPB, culminating in a joint submission to Treasury and were united in their concerns regarding the exposure draft Determination.”
She said the SMSFA is concerned about the extremely short lead time from registration to commencement of the Determination on 1 August 2024 which is “unrealistic and impractical” and won’t allow the TPB time to adequately prepare and consult on its guidance.
“TPB guidance will be an essential tool in supporting tax agents’ understanding, implementation and compliance with these amendments and will be vital given the challenges in the statutory interpretation, broad drafting and conflicts arising from the language used in the Determination,” she said.
“It is crucial to note that tax agents also need sufficient time to incorporate these changes in their practices.”
She added it is a matter of urgency that practitioners should immediately review their quality control manuals, procedures, and work papers to ensure they are compliant with existing obligations of the TPB, APES 110, and any additional obligations required by the joint accounting bodies with whom they hold membership.
“It is also imperative to integrate the new obligations set out in the Determination without delay,” she said.
She concluded that SMSFA will continue collaborating with the joint bodies to advocate for a workable solution and maintain its ongoing engagement with the TPB.
