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Code of Conduct Changes – Now legislated

The finalised TASA Code of Professional Conduct changes, made more workable after significant consultation with Treasury, include a transitional measure allowing smaller practitioners with fewer than 100 employees until 30 June 2025 to comply.

The proposed changes to the TASA Code of Professional Conduct have been finalised and are now law. Kelvin Deer director Australian Bookkeepers Association (ABA) offered this perspective “significant consultation time was invested with Treasury to force modifications to the proposed Code of Conduct changes”. The changes to Treasury’s Code Determination mean that they are more workable than was originally the case”. Importantly a transitional measure was introduced that means that smaller practitioners (under 100 employees), will not need to make changes until 30 June 2025.

The Code items were finalised in an updated Determination as well as supporting Explanatory Statements, which were created by Treasury. With the changes now law, the Tax Practitioners Boards has now produced draft guidance in the form of Information Sheets, webinars. The Draft Information Sheets recently released for public comment are subject to input from associations. Kelvin said “the work of professional associations including ABA was significant and is still ongoing with the TPB to ensure a sensible approach to the code changes is achieved”.

Kelvin highlighted that there are some important issues for agents to bear in mind:

• That the adverse outcomes inherent in early drafts of the code items have been substantially mitigated;
• Guidance material is currently being produced by the TPB and should be available over the coming months;
• There will likely be very few changes to the daily work practices of BAS Agents but there will be some issues and disclosures BAS Agents will need to address;
• The transitional rules mean that bookkeepers will have time to make any changes as a result of the new Code of Conduct provisions;
• Your associations are across all the changes and continue to work with the TPB on guidance material.

Much press was devoted to these Code of Conduct changes and as a result of the Associations advocacy process, we eventually saw a proper consultation process and now have workable outcomes. Initial concerns included the need to disclose issues like religious beliefs, duplicate client record keeping, provide an audit assurance service as to client disclosures and more. Those concerns dissipated with the consultation process conducted by associations. TPB have also been actively looking to assuage agents concerns. A few observations from TPB Chairman Peter DeCure provide insight into their take on these reforms:

• "I also want to emphasise that these new requirements do not require practitioners to become Tax Office auditors which is something that's been spread around by a few people."
• "Clearly, we're not asking you to keep downloads of a full client's ledger. We understand that a lot of the work done these days by tax agents and BAS agents is working on live ledgers and live records of their clients," "We recommend that you have a proper process to record that you've cited them.”
• “Our expectations in terms of sophistication of response are much higher at the top end of town and much more pragmatic at the bottom end of town,” he said. “For a sole practitioner, when it comes to a quality management system, we don't need to see endless pages and manuals, what we need to see is that they've got an appropriate way of dealing with the risks.”
• “For the really poorly behaved or egregiously behaved practitioners, they’ll get serious sanctions.”
• "I want to emphasise that this is in relation to significant or material issues. It's not about trivial things," "I think in most people's day to day practice, it'll be a rarity that they come across a significant or material false or misleading statement. I'm sure when you do come across it you'll recognise it."

When Kelvin was asked “where to now for BAS agents ?”, he provided some reassuring guidance. “There will be some changes to be implemented by BAS Agents but for many this will have a relatively minor impact. Rushing at solutions touted in the marketplace as a fix all might prove counterproductive as TPB guidance is yet to be finalised.” “You have time on your side and your associations will have your back and ensure you have sufficient resources to enable compliance”. Australian Bookkeepers Network and ABA have an active workbook of resources to bring to BAS Agents over the coming months to ensure compliance.    

Further Code of Conduct guidance provided in Bookkeeper Radio episode 26 November.