Important Changes to How Tax Advisers Work with You

New rules in Australia are changing how tax advisers work with their clients.

These changes aim to make the tax system fair and transparent.

If you work with an accountant or tax agent, here’s what you need to know.

Why the Rules Changed

The new rules for tax advisers in Australia came about after a major scandal involving the accounting firm PwC.

A former PwC partner leaked confidential government info to help clients sidestep new tax laws and attract new clients. This leak exposed serious problems in the way tax services were regulated in Australia.

In response, the Australian government made the rules stricter to stop this from happening again. The goal is to protect taxpayers, ensure fairness, and increase trust in the tax system.

Key Things You Should Know

If you are working with a tax accountant or any other tax practitioner in Australia, there are a few things you need to be aware of:

1. Check Your Tax Practitioner’s Registration

Only tax advisers who are registered with the Tax Practitioners Board (TPB) are allowed to provide tax services in Australia.

So, verify your accountant’s registration at TPB Public Register before you engage them.

If your accountant is not registered, then they aren’t legally allowed to offer tax services. Working with them could cause you more harm than good.

It only takes a few minutes and will save you trouble down the line.

2. Handling Complaints

Mistakes can happen. There are various reasons why you may not be happy with the service you get from your tax accountant.

If you have a problem with your accountant (and they aren’t solving it), you can file a TPB Complaint. They will investigate the matter and, if necessary, take action against the practitioner.

This way you can hold your accountant accountable to your best interests and ensure they’re following all legal requirements.

3. Correcting Mistakes

If an error has been made, it is important to correct it promptly to prevent potential issues or penalties.

In the event that you do not address an error, your tax accountant is required to report it. If the accountant fails to report the mistake or if they were responsible for the error and have not corrected it, you will need to report it yourself.

This approach helps maintain fairness in the tax system and ensures that everyone pays their appropriate share. Therefore, it is crucial to address any known errors without delay. Most importantly, the legal consequences or penalties can be avoided or minimalised.

What This Means for You

These changes are designed to protect you and make sure the tax system is fair.

Here’s what you need to remember:

• Only work with registered tax advisers
• Hold your accountant accountable
• Report and correct any mistakes right away

By taking these steps, you can make sure you are protected, and your taxes are managed properly in line with the latest regulations.

Not sure if your accountant is doing the best possible job? Concerned about how these new rules may apply to your situation?

Get in touch for a free consultation

We can help you navigate the changes and ensure your tax matters are in good hands.