A petition against “unfair and unworkable” changes to the rules governing tax agents has closed with more than 2,000 signatures, calling on Assistant Treasurer Stephen Jones to reconsider the August 1 shake-up.
Under a new determination signed by the Assistant Minister, tax practitioners will need to comply with eight new obligations under Tax Agent Services’ Code of Professional Conduct from next month.
It presents the changes as a way to protect and uphold ethical standards in the tax profession, following high-profile incidents like the PwC scandal.
But the legislative instrument surprised the accounting sector, with industry representatives suggesting the speed and scope of the new changes will be unworkable for small practices.
Concerns about the reform have been channeled into a Change.org petition, launched on Monday by David Boyar, general manager of accounting software and compliance advisory provider ChangeGPS.
“These measures are materially different from the draft rules our industry professional bodies provided feedback about, and they are simply impossible for small businesses to comply with in such a short timeframe,” the Change.org petition reads.
It drew particular attention to the rule change requiring tax practitioners to advise their clients of “any matter that could significantly influence a decision of a client to engage you, or to continue to engage you”.
“This requirement is an invasion of personal privacy and goes beyond what is necessary for transparency and accountability,” the petition reads.
“It places an unreasonable burden on small accounting practices and exposes personal information that should remain private.”
Given those concerns, the petition calls on the Assistant Treasurer to remove the clause entirely, or specify that “any matter” relates purely to the agent’s registration under the Tax Practitioners Board.
It also calls for recognition that the government’s broadscale tax registration reforms are a response to misconduct among the nation’s biggest accounting practices, not neighbourhood operators.
The petition closed Thursday after reaching its target of 2,000 signatures.
Its closure comes after a joint letter from major accounting representatives called upon the Assistant Treasurer to rethink — or, at the very least, a delay — the August 1 rule changes.
Participants now face an anxious wait for further information on the reforms.
The Tax Practitioners Board is preparing material to guide tax agents through the changes, but with just days to go until the rules come into effect, some industry figureheads are concerned the advice will come too late.
Tax agents and bookkeepers must now prepare for the rule change, but the legislative instrument underpinning the rule changes must also survive a disallowance period, a timeframe in which Parliament may veto or override the determination.
SmartCompany has contacted the Assistant Treasurer’s office for comment.
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Senior Business Journalist
Focused on the small business sector, David’s work covers the political, regulatory, and economic issues facing Australian entrepreneurs. Prior to joining SmartCompany, he was a reporter for Business Insider Australia. You can follow him on LinkedIn.
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