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In a letter, Max Chandler-Mather has backed practitioners’ calls for clarity on contentious new rules set to start on Thursday.
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Greens MP demands answers on code changes amid Treasury silence
31 July 2024
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A Greens MP has demanded the government break its silence over recent changes to the tax agent code of conduct, adding his voice to the growing chorus of concern from industry members and politicians ahead of the 1 August start date.
In a letter this week to Assistant Treasurer Stephen Jones, Greens MP Max Chandler-Mather sought explanations for “vague and contradictory” statements and told the government to make its “intent on all accountants” clear.
“I am writing today to seek clarification about the interpretation of these new rules in order to support my constituents,” he said.
“I have recently been informed that elements of the new rules are vague and contradictory, making them impossible to abide by and are materially different to the draft rules.”
Chandler-Mather is the latest MP to back the tax community’s concerns after shadow assistant treasurer Luke Howarth released a statement on 18 July accusing the government of “waging war on local accountants”.
Despite the intervention from the Greens and Liberals, the government is remaining silent over Jones’ ministerial determination registered on 2 July. The determination made eight changes to the tax agent code of conduct, affecting practitioners’ disclosure, confidentiality and record-keeping obligations.
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Jones’ office has also failed to respond to media requests for comment and professional bodies are still waiting for a reply to an open letter written earlier this month calling for Jones to withdraw the changes and host “urgent” talks with the industry.
“We continue to hold significant concerns about the legislative instrument and the detrimental aspects that outweigh the improvements made,” the open letter, signed by ten members of the TPB’s governance and standards forum including CA ANZ, CPA Australia and the Institute of Public Accountants, said.
The government's continued silence on the determination has only intensified the speculation and scrutiny over what its broad provisions could entail.
Chandler-Mather, who represents the South Brisbane seat of Griffith and is also the Greens housing spokesperson, said the new rules were “particularly detrimental” to small business owners.
“Discretion should be exercised when passing blanket laws to accounting businesses of all sizes,” he wrote in his letter to the Assistant Treasurer.
His constituents were most concerned over sections 15 and 45 of the determination and what they could mean for their confidentiality and disclosure obligations.
“Regarding section 45, my constituents have advised that they require more clarity on what ‘any matter’ means for the purposes of making public declarations as they believe it is an invasion of personal privacy,” he said.
He said an amendment to the code to change the phrase to “any matter related to the Tax Practitioners Board” could remove the requirement to publicly disclose a practitioner’s personal, religious and political beliefs as well as mental health and family matters.
“Regarding section 15, my constituents have informed me that the new rule will require them to report a client to the ATO if they do not correct a materially false, incorrect or misleading statement that they prepare within a reasonable time,” he said.
“My constituents are uncertain when their obligation to keep the confidentiality of a client's information is overridden by the new obligation to report the client to the ATO if they do not consent within a reasonable time.”
Chandler-Mather called on the government to provide practitioners clarity with the new rules set to start on Thursday.
“I am requesting a response to my constituents, particularly regarding their concerns about tax code interpretation,” the letter said. “My team and I are keen to support my constituents with this matter, and also to have a greater understanding of the government's intent on all accountants.”
“We are keen to receive your response.”
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