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CPA Australia has opposed the proposal to remove registration pathways with professional bodies while CA ANZ says the rushed timeline risks poor policy outcomes.
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Accounting bodies push back on TPB shake-up
19 July 2024
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The government is facing industry pushback over its proposed overhaul of the TPB, with the nation's top accounting bodies criticising the reforms’ substance and rushed consultation process.
After the Treasury department released a consultation paper on Wednesday afternoon flagging reforms to education, qualification and experience requirements for tax and BAS agent registration, CPA Australia said it opposed the proposal to remove the professional membership pathway.
CA ANZ also expressed concern over the risk of “rushing” consultation, with submissions to the paper due back within three weeks.
Ram Subramanian, CPA’s interim head of policy and advocacy, said registered professional associations (RPA) played an important role in connecting consumers, the TPB and professional advisers.
Their role would only be increased with incoming legislation to incorporate prescribed disciplinary bodies into the information sharing regime, he said.
“CPA Australia does not support the proposal to remove the professional association accreditation and registration pathway.”
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“RPAs ensure a clear pathway for ethical professionals and ensure the smooth interaction of accounting professionals with the regulatory environment.”
“CPA Australia has consistently spoken about the negative repercussions of this recommendation since the TPB review report was first released and we continue to maintain this view.”
He said many highly skilled practitioners used the professional membership pathway, including overseas talent and those who joined the profession through non-conventional routes.
“The potential consequences, unintended or otherwise, of removing the professional membership pathway must be comprehensively considered,” he said.
“CPA Australia and the other professional bodies maintain the appropriate oversight and professional conduct procedures to ensure integrity within the profession.”
The government’s consultation paper said removing the option would improve the TPB's independence from the industry and “mitigate against actual or perceived risk of regulatory capture”.
It argued that membership to professional bodies would likely remain attractive to tax practitioners despite the removal of the registration pathway, given they offered continuing professional development and other membership benefits.
CA ANZ said it welcomed the opportunity to make a submission to the Treasury’s proposal and that it would be closely assessing the impact on both individual members and member firms.
“Any changes here will impact our tax practitioner members as well as member firms that are registered tax agents,” Simon Grant, CA ANZ group executive advocacy and international development, said.
“Impacts could include a member’s ability to recruit registered agents and the member’s ability to meet their supervisory obligations. It could also impact a member’s ability to expand their practices and client base.”
However, Grant questioned the short timeframe given for stakeholders to respond to the consultation, with submissions due back by 7 August.
“CA ANZ will continue to advocate for consultation times to be adequate. Government guidelines require, as a matter of good practice, broad public consultation over a minimum 30-60 day consultation period. These good practices should be enforced,” he said.
“Rushing heightens the risk of poor policy outcomes and that is not in the best interests of good governance or our democracy.”
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