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Accounting bodies are calling on Senate crossbenchers to support a disallowance motion to overturn the controversial code obligations.
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Professional bodies welcome Coalition’s move to disallow code obligations
14 August 2024
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The professional accounting bodies have welcomed an announcement that Coalition MPs will seek to pass a disallowance motion to withdraw the government's new code obligations.
In a joint statement on Tuesday, Liberal MPs said they would look to partner with Senate crossbenchers on a disallowance motion to reverse the unpopular changes to practitioners’ disclosure, confidentiality and record-keeping obligations.
“The Coalition will seek to disallow the Albanese Labor government’s latest move to burden tax practitioners with unnecessary and unrealistic red tape,” the statement from shadow treasurer Angus Taylor, shadow assistant treasurer Luke Howarth and senator Dean Smith said.
Chartered Accountants Australia and New Zealand (CA ANZ) welcomed the Coalition's pledge to seek disallowance of the recently tabled Tax Agent Services (Code of Professional Conduct) Determination 2024.
CA ANZ, CPA Australia, the Institute of Public Accountants and other industry bodies have previously called for the determination to be withdrawn due to deep concerns with sections 15 and 45 of the determination.
CA ANZ chief executive Ainslie van Onselen and group executive for advocacy, Simon Grant, have met in Canberra this week with decision makers to explain the association's concerns about the new obligations being imposed on registered tax and BAS agents.
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"We have been in regular contact with the Assistant Treasurer’s office to make it clear that while we support the intent of the reforms, aspects of the Determination – in particular sections 15 and 45 need to be changed,” said Ainslie van Onselen, CEO of CA ANZ.
CA ANZ said it was disappointing to see the determination tabled in the Senate on Monday, despite the major concerns raised by the profession.
Senators now have a small window of time to disallow the determination tabled on Monday.
“We have come to Canberra to ensure that key decision-makers understand the burden that has been placed on registered tax and BAS agents. The Determination contains new provisions that have not been subject to consultation while the obligations also disproportionally impact smaller practices,” van Onselen said.
“We’re asking Senate crossbenchers to support any disallowance motion in the Senate, or for the government to withdraw the determination so it can be re-written following more effective consultation."
Van Onselen reiterated her concerns that section 45 of the determination requires tax professionals to advise all current and prospective clients of ‘any matter’ dating back to 1 July 2022, that could ‘significantly influence’ a decision of a client to engage with them, but there is no clarity regarding what ‘any matter’ must cover.
“The obligation to disclose private information, such as investigations and health conditions which may affect an agent’s ability to provide services, has not been examined according to the Statement of Human Rights that accompanied the determination," she said.
“It is imperative that the human rights implications of these important new obligations be properly considered and ideally that the obligations be clarified through re-drafting."
The IPA is similarly calling for support from all corners of the crossbench to have the determination disallowed in Parliament.
"After tax practitioner breach reporting rules surfaced last year unannounced in poorly drafted legislation we thought it was an isolated incident. It’s Deja Vu with the new code determination," said IPA general manager of technical policy, Tony Greco.
"The TPB has not yet finalised its guidance on breach reporting let alone come to terms with the eight new obligations for the Professional Code of Conduct which the Assistant Treasurer still maintains are ‘modest changes ‘.
"This is not the way important regulatory changes should be introduced into law especially when impacts on the daily operations of all tax practitioners. We're seeking support from all corners to have this determination disallowed in Parliament."
In its statement released yesterday, the Coalition said the new obligations were far-reaching, poorly drafted and potentially impossible for thousands of small tax practitioners to comply with.
"This will drive up costs for Australians and small businesses who rely on and trust tax professionals to help manage their financial affairs," Coalition MPs stated.
"These clients are individuals and small businesses like young professionals, retirees and tradies – the impacts could span millions of Australians, during a cost-of-living crisis."
Shadow assistant minister for competition, charities, and treasury, Dean Smith, said smaller tax practitioners’ need for regulatory certainty, proportionality and guidance has been completely ignored by the government.
“The Assistant Treasurer rushed this regulation through without warning on the last sitting day before Parliament’s six-week winter recess, leaving Australia’s 71,000 registered tax practitioners to play catch-up.”
“Now they have assessed the potential burden, they are rightly calling for it to be withdrawn or disallowed.”
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