A national review of standards for the tax profession was undertaken by tax professionals, the Tax Agents' Board of NSW, the Attorney-General's department and the Australian Tax Office (ATO) following discussions in July 1992.
In November 1994 a report was subsequently issued which recommended a number of improvements to the regulation of tax agents.
Announcement of new legislation framework
A new legislative framework for tax agent services was announced by the then assistant treasurer, Ron Kemp, in a media release on 6 April 1998.
The proposed legislative changes were designed to create an improved environment for tax agent services by clearly defining the role of tax agents which would be subject to a legislated code of practice.
It was also proposed that a new national Tax Agents' Board be created to administer the code of practice and process applications for registration.
The issue of exposure draft legislation on these initiatives was deferred as a result of the introduction of the goods and services tax and other reforms arising under the new tax system.
Release of exposure draft legislation
The implementation of a new national legislative framework for tax practitioners was revived in the 2006-2007 Federal Budget in a press release issued by the minister for revenue and assistant treasurer, Peter Dutton on 9 May 2006.
The assistant treasurer also announced that the Government would provide $57.5 million over four years for the development of the proposed legislation
The Exposure Draft Tax Laws Amendment (Tax Agent Services) Bill 2007 and associated draft Tax Administration Amendment Regulations, along with relevant explanatory materials, was later released by the assistant treasurer on 7 May 2007.
Key features of the exposure draft include:
- the establishment of a national Tax Practitioners Board, replacing existing state based boards
- the creation of a legislated code of professional conduct
- the registration and regulation of Business Activity Statement (BAS) service providers
- the provision of a 'safe harbour' for taxpayers from tax shortfall penalties where they have taken reasonable care in providing all relevant information to the agent preparing their returns.
Written comments on the exposure draft legislation (and accompanying materials) are due by 10 August 2007.
Further information
