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TPB releases new guidance on supervisory arrangements

11 October 2021

TPB releases new guidance on supervisory arrangements 

We’ve released finalised guidance on the supervisory arrangements requirements under the Tax Agent Services Act 2009 (TASA). Our draft guidance was released for public consultation on 31 May 2021. We’ve considered all submissions received before finalising this guidance.

The TASA requires all partnership and company entities to meet the ‘sufficient number’ requirement. The guidance will assist these entities to understand what this requirement means and what they need to do to meet this requirement. 

Having adequate supervisory arrangements will enable tax practitioners to ensure tax agent, BAS or tax (financial) advice services provided on their behalf are provided competently. This is also a requirement under the Code of Professional Conduct. The guidance includes helpful measures that will assist tax practitioners to ensure they have adequate supervisory arrangements in place, including where remote work arrangements exist. Tax practitioners can also apply these measures in franchise arrangements to ensure effective supervision is provided. 

Requirements and recommendations 

There’s a range of recommendations and requirements included in the guidance to assist tax practitioners. Some of these include:

  • the requirement to obtain the prior written consent of nominated registered individuals, so they are aware of their appointment as supervising tax practitioners and the responsibilities of the role
  • developing a supervisory plan, setting out the processes and procedures to help establish a clear understanding of the supervisory arrangements for both the supervisor and the staff under the plan
  • relevant considerations to ensure adequate supervisory arrangements exist in remote working arrangements
  • factors to consider when a nominated registered individual supervises one or more related or unrelated entities or both.

For further information refer to the TPB Information Sheet TPB(I) 36/2021 Supervisory arrangements under the Tax Agent Services Act 2009.

Last modified: 11 October 2021