TPB urges small firms to prepare for new code obligations
Small accounting firms should begin reviewing their procedures and practices to ensure they comply with the eight new code obligations starting on 1 July.
The Tax Practitioners Board has reminded smaller firms with 100 or fewer employees to start preparing for the eight new Code of Professional Conduct obligations that will begin from 1 July 2025.
The new code obligations were introduced by the government last year under the Tax Agent Services (Code of Professional Conduct) Determination 2024.
The obligations already commenced for large firms with more than 100 employees at the start of this year.
The TPB said the new obligations seek to enhance the high professional and ethical standards expected by the community of registered tax practitioners.
The obligations aim to improve transparency and accountability, give the public greater confidence and trust in the integrity of the tax profession and strengthen tax system integrity and the regulation of the tax profession.
"We urge you to review your processes, procedures and practices now, and implement any changes necessary to meet the new requirements," the TPB said.
The TPB reminded tax practitioners that it has published a range of information sheets about the new obligations.
"We will take a pragmatic and practical approach when enforcing compliance with these new obligations for all tax practitioners who are trying to do the right thing," it said.
"Our compliance approach has always been to achieve compliance through education and support, with investigations and sanctions reserved for the high risk and serious cases of non-compliance."
Speaking in a recent webinar, tax specialist and educator John Jeffreys said that while many of the obligations would be straightforward to comply with, the requirements relating to quality management systems would be challenging for some practitioners who did not yet have these systems in place.
While practitioners are required to have this in place from 1 July 2025, Jeffreys said many practitioners simply would not get around to it in the coming weeks.
"What I recommend [for these practitioners] is that over the course of the next six months they set aside time to make sure [they] have developed this."
