iscoverThe Assistant Treasurer has announced the government will give accounting firms with less than 100 employees until 1 July 2025 to comply with the new rules.
Minister Jones postpones start date for code changes
01 August 2024
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7 minute read
In a joint letter sent to the accounting bodies yesterday, Minister for financial services Stephen Jones has confirmed that he will insert a transitional rule into the determination that will provide firms with 100 employees or less until 1 July 2025 to comply with the new obligations.
Larger firms with 101 employees or more will be given until 1 January 2025 to bring themselves into compliance with the new obligations.
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Jones stressed in the letter that practitioners still need to continue to take genuine steps towards compliance during this period.
"This aligns with the government's existing approach and the public statements that the TPB has already made regarding implementation of these important obligations," he said.
"It also provides certainty that the TPB can and will work collaboratively with you to understand and implement the obligations. Should it become clear to the government during the process to finalise guidance that it is critical that changes be made to the determination I will engage constructively with you and other stakeholders."
The announcement to delay the start the of the new obligations follows intense lobbying efforts from the professional bodies and the broader accounting industry with many concerned about the short time frame for complying with the obligations.
The code changes include prohibitions around false and misleading statements and obligations such as requiring practitioners to disclose to clients significant matters such as prior convictions of tax offences.
Jones said there was a need to close regulatory gaps in the profession that could be exploited by firms of all sizes.
"Misconduct has serious impacts for consumers and causes them to lose trust in the tax profession and tax system," he said.
"It also impacts compliant practitioners who are forced to compete with dishonest practitioners."
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