The Australian Tax Practitioners Board (TPB) has introduced important changes to the Tax Agent Services Code of Professional Conduct. These changes impact all registered tax agents, BAS agents, and accountants—along with the small business owners who rely on them.
The goal of these changes is to crack down on misconduct and rebuild confidence in the tax practitioner industry. But what does this mean for your business? In this article we are breaking down the key changes, how they might impact you and how you can prepare for the changes.
Why the Code is Changing
In August 2023, the federal government announced a plan to tighten regulations to make sure tax agents and bookkeepers are held to the same high standards as their clients. This was part of their commitment to creating a stronger, fairer tax system.
The changes to the Code of Conduct mean tax agents now have more responsibility to ensure their clients are following the rules. If not, they may need to take action—sometimes even reporting their clients to the Australian Tax Office (ATO). The changes come into effect on 1 July 2025.
Key Changes and What They Mean for Your Business
Here are the biggest changes you need to be aware of:
1. Tax Agents Must Report False or Misleading Information
- If your tax agent finds an error in your tax reporting, they’ll ask you to fix it.
- If you don’t take action within a reasonable time, they may have to notify the ATO.
- This means bookkeepers and tax agents are no longer just advisors—they’re now legally responsible for ensuring their clients follow tax laws.
What this means for you: You need to stay on top of your financial records and correct mistakes as soon as they’re identified. But you don’t need to figure it out on your own – lean on your trusted tax advisors, they know what you don’t know.
2. Stricter Record-Keeping Requirements
Tax agents now need to keep more detailed records, including:
- Advice given to clients
- Documents received from clients
- Communications with clients (emails, texts, phone calls)
- Interactions with third parties (like the ATO, accountants, legal advisors or consultants)
These records must be kept for five years.
What this means for you: Keep your paperwork organised and know what kind of evidence and information your tax agent is going to need – if you aren’t sure then ask them now. If your tax agent asks for receipts or supporting documents, don’t delay in providing them.
3. Tax Agents Must Keep Clients Informed
Tax professionals must inform current and prospective clients about:
- Their registration status (so you can verify they’re properly licensed).
- The rights and responsibilities of both the client and the tax agent so both parties are clear on their obligations.
- How to make a complaint if you believe they’re not doing their job properly.
- Any disciplinary actions, suspensions, or fraud convictions they’ve had.
What this means for you: Make sure you’re working with a fully registered and ethical tax agent. You can check their credentials on the TPB’s register of approved agents.
How This Affects Small Business Owners
These changes place more responsibility on tax agents, but they also affect you as a business owner. Here’s what you need to do:
Make sure you’re compliant – If your bookkeeper or tax agent asks you to correct something, don’t ignore it.
Keep proper records – Store your receipts, invoices, and business expenses in a secure, organised way.
Work with a proactive tax professional – If your current bookkeeper isn’t keeping you updated on tax law changes, it might be time to find one who will.
Take tax compliance seriously – The ATO is increasing its enforcement efforts, and penalties for non-compliance are steep. The ATO has provided guidance on some of their areas of focus for small business tax compliance – you can’t afford to get these ones wrong!
How Dream Admin is Helping Clients Prepare
At Dream Admin, we’ve already taken steps to ensure our clients are ready for these changes. Here’s what we’re doing:
- Helping clients integrate technology – We help set up and manage easy-to-use expense tracking apps so you don’t lose receipts or forget business expenses.
- Staying informed – We regularly attend industry seminars and training to stay ahead of tax law updates.
- Regular check-ins with clients – We don’t just handle your bookkeeping and administration at the last minute. We’re working with our clients throughout the year to ensure everything is on track and we can take corrective action early if needed.
- Proactive compliance support – If you’re facing a tax issue, we can help you find a solution before it becomes a major problem, and liaise with the ATO on your behalf.
- Early education and preparation – We’ve already started talking to our clients about these changes so they aren’t caught off guard.
Final Thoughts: Now More Than Ever, You Need the Right Tax Partner
With increasing focus on compliance for businesses and their tax agents, it’s crucial for business owners to work with tax agents who are true partners in securing the financial health of the business.
Here’s the bottom line:
- You need a tax professional who does more than just lodge your BAS or tax return.
- You need someone who helps you stay compliant and supports your business success.
- The right tax agent or bookkeeper isn’t just a service provider—they’re a partner in your financial health.
At Dream Admin, we take this responsibility seriously. We take the stress out of compliance—and turn it into a foundation for growth.
If you need help with your tax compliance get in touch with Dream Admin today.
