Message from the Chair

With the Tax Agent Services Act 2009 (TASA) coming into full effect from 1 March 2010, the Tax Practitioners Board has been busy undertaking preparatory arrangements for the launch of the new regime.

Last week my message provided information for BAS preparers to assist them transition into the new regime. This week’s message looks at similar transitional arrangements, but for tax agents.

If you are currently registered as a tax agent, your registration will continue under the new law. There is nothing you need to do until your registration expires and you wish to apply for re-registration. When your registration is due for renewal the Board will contact you with details on how to re-register.

From 1 March anyone providing what is defined as a tax agent services for a fee or other reward, is required to register under the new law. Regardless of whether you are an individual, partnership or company, there are generous transitional arrangements in place to allow providers of tax agent services time to transition under the new law and comply with registration requirements.

There are three ways in which a tax agent may become registered under the new legislation.

1. Notify the Board under the transitional provisions –  If you were providing a tax agent service immediately prior to 1 March 2010, but were not required to be registered as a tax agent under the old law, you will have until 31 May 2010 to notify the Board that you wish to apply for registration under the transitional arrangements. Entities that meet these conditions will be taken to be registered for a two year period beginning on 1 March 2010. This two year transitional registration gives tax agents time to comply with eligibility requirements for subsequent re-registration.

2. Apply for tax agent registration under the transitional provisions – If you have been providing a tax agent service to a competent standard for a reasonable period, immediately before the new law commenced, you can apply for registration under the transitional arrangements. Application for transitional registration can be submitted up until 31 August 2010. Providing entities meet these conditions, they will be eligible for registration under the new law without having to satisfy certain eligibility requirements, in particular, the qualifications and experience requirements for registration.

3. Register under the new law – If you meet the eligibility requirements for registration as a tax agent, you can apply from 1 March 2010, using the registration form available on this website. Once the Board has approved your application, you will be taken to be registered for at least three years, however your registration may be subject to conditions. 
 
For more information about eligibility requirements and how to register, you can access information sheets on the Board’s website www.tpb.gov.au.

Recently we have received some questions asking for clarification on the Board’s approach to what is considered a ‘sufficient number of individuals’ to be registered tax or BAS agents for companies and partnerships. There is no set formula that can be applied for determining the number of registered individuals that a company or partnership is required to have in order to satisfy the requirement.

The Board recognises that what is a ‘sufficient number of individuals’ will depend on the individual circumstances of the company or partnership and the work they are required to undertake for their clients. Companies and partnerships are required to have sufficient number of individuals registered as agents in order to provide services to a competent standard and carry out supervisory arrangements. The Board may provide further guidance on adequate staffing and supervisory arrangements from time to time, but knowing the basic requirements for companies and partnerships of having a sufficient number of registered individuals, the requirement to provide services to a competent standard and to allow for supervision should enable professionals themselves to determine what is required.

Finally, I note that I recently issued a media release outlining the Board’s position on professional indemnity insurance. From 1 July 2011, registered BAS and tax agents will need to have professional indemnity insurance coverage. For more information view the media release on this website.

Dale Boucher
Chair, Tax Practitioners Board
1 March 2010