Tax practitioner application fees 2025-26

1. Introduction

Purpose of the CRIS 

This CRIS provides information on how the Tax Practitioners Board (TPB) will implement partial cost recovery for the processing of applications for registration and renewal of tax agents and BAS agents (collectively referred to as tax practitioners). 

It should be noted that the Government’s response in November 2020 to the Independent Review of the TPB may impact on the TPB’s future costing framework. The future funding arrangements for the TPB are subject to review and the CRIS needs to be considered in light of potential changes.

About the TPB 

The TPB is an independent statutory body created under Tax Agent Services Act 2009 (TASA) and is comprised of Board members appointed by the relevant Minister. The TPB administers the TASA and Tax Agent Services Regulations 2022 and is responsible for regulating entities providing tax agent services in Australia for a fee or reward, which includes the services provided by tax practitioners. 

For more information about the TPB, see About the TPB.

2. Description of the regulatory charging activity

Applicants are charged for the processing of applications for tax practitioner registration, including renewal. The TPB undertakes a range of activities to satisfy this mandate. These activities can broadly be described as follows:

• engaging with stakeholders – including potential applicants, applicants, registered tax practitioners and professional associations
• providing policy advice on the registration and renewal eligibility requirements 
• providing technical and operational guidance on the registration and renewal process and eligibility requirements  
• developing and maintaining online tools to enable the registration and renewal process (including online forms and a tax practitioner portal ‘My Profile’) 
• assessing and processing registration and renewal applications.

3. Policy and Statutory Authority to Cost Recovery

The TPB’s ability to charge application fees is established under the following: 

• Tax Agent Services Act 2009
• Tax Agent Services Regulations 2002
• Treasury Laws Amendment (2018 Measures No. 1) Regulations 2018.

On 27 November 2023, the Treasury Laws Amendment (2023 Measures No. 1) Bill 2023 received royal assent. This Bill introduced increased financial independence for the TPB with the commencement of a special account from 1 July 2024. 

From 1 July 2024, the registration period for tax practitioners occurs on an annual basis changed from 3 years previously. This was to allow for the outcome of the charging review to be determined and implemented subsequent to 1 July 2027. 

The TPB is working with Treasury to assist Government’s decision as to an appropriate cost recovery model for the TPB.

The application fee amounts and structure that apply are as follows:

Table 1: Tax practitioner application fees (new and renewal applications)

_{From 1 July 2024, the registration period of tax partitioners occurs on an annual basis (previously 3 years)}

4. Cost Recovery Model

The cost of regulatory activities is based on staff effort to process the registration applications which is then applied to the two tax practitioner types (tax agent and BAS agent).

Staff time which relates to the receipt, checking, assessment and verification of information, making a determination on the application, as well as notification to the applicant, has been worked out through the use of management reports and staff questionnaires. 

TPB’s regulatory charging activities are outlined in Table 2 below.

Table 2: TPB's regulatory activities

The nature of the cost drivers are outlined in Table 3 below. 

Table 3: Main cost drivers

Table 4 illustrates the 2025-26 estimated cost for processing new and renewal applications by cost and tax practitioner type. This table also illustrates the 2025-26 revenue from application fees by tax practitioner type and surplus/shortfall from revenue against cost.

Table 4: 2025-26 revenue and expense estimates (for registration process only)

The TPB is using the most recent forecast data in table 4 for the application volumes of 32,175 for tax agents and 10,220 for BAS agent, and the lower fee applied to tax agent ($281) and BAS agent ($56) registration. This generates the estimated costs of $14.486m and estimated revenue of $9.616m.

5. Financial Estimates

TPB expenses and revenue estimates for processing new and renewal applications are set out in Table 5. 

The surplus accumulated prior to 2022-23 has enabled TPB to partially reduce the deficit in 2024-25. That deficit is due to the triennial fee being changed to an annual fee cycle. There is a similar deficit expected in 2025-26, due to the annual registration fee for those tax practitioners have only partially changed from the triennial to annual registration cycle. 

The deficits for 2024-25 and 2025-26 Financial Years are funded through a temporary increase in the TPB appropriation as part of the transition to annual registration cycle.

Table 5: TPB revenue and expenses estimates (for the registration process only)

6. Non-financial performance

The number of tax practitioner applications processed each year is reported in the TPB’s Annual Report (see the section regarding performance measures in the TPB Annual Report).

The revenue and expense associated with tax practitioner application fees will vary in accordance with the number of applications received and processed annually. Following the transition of tax practitioners from the triennial to annual registration, a further review of the application fee amount and structure will be conducted if the difference between estimated and actual applications received over a 3-year period exceeds 20 per cent.

 Consistent with government policy, the charge will be regularly reviewed to confirm the charge meets the government policy objective of ensuring tax practitioners rather than the general public bears the costs of regulating tax practitioners and index it for appropriate increases in costs.

7. Risk assessment 

The risk of the change to the estimate in 2025-26 is considered LOW.

The number of registered tax practitioners is stable, and the application fee process is mature. Following the James Review, the TPB implemented changes to move to an annual fee model, increasing financial independence from the ATO (see Recommendations 3.1 and 4.7).

Operational costs for the TPB are also stable and are not expected to vary significantly in 2025-26. 

The TPB will continue to monitor practitioner numbers, application volumes and cost drivers throughout the 2025-26 year.

8. Stakeholder engagement 

Fees for tax practitioners are set by the TASR, not by the TPB, and therefore there is limited stakeholder engagement in the setting of fees. However, the TPB will notify changes of fees to stakeholders through the TPB’s existing stakeholder engagement and communication strategy, which includes various TPB communication channels and consultative forums.

Stakeholder engagement will also take place through the TPB’s primary consultative mechanism – the TPB Consultation and Standards Forum. This Forum meets approximately quarterly and provides provide key stakeholders, including the professional associations, with opportunity to discuss and consult on key matters affecting tax practitioners.

9. Key forward dates and events

This section sets out an outline of the key events.

10. CRIS approval and Change register

The table below shows approvals and changes pertaining to this CRIS. 

References

^[1]If an application is approved, the tax practitioner’s registration period is for at least one year. Where an application is formally rejected, the application fee is not refundable.