Treasury opens consult on TPB sanctions framework

Treasury is seeking feedback on draft regulations and a draft determination to support a stronger sanctions framework for the Tax Practitioners Board (TPB).

The draft regulations would require the TPB to publish information about sanctions on the public register.

This would apply when a tax practitioner's registration is suspended or terminated; an unregistered tax practitioner is convicted of an offence under the Tax Agent Services Act 2009; an unregistered tax practitioner pays an infringement notice; and the TPB accepts an enforceable voluntary undertaking.

The draft determination would require tax practitioners to tell clients about certain conduct matters.

In the explanatory statement, Treasury said the 2023 PwC tax leaks scandal exposed limitations in the current regulatory framework for tax practitioners and the broader system in which they operate.

"As part of the government's response to the PwC matter, the government consulted on proposed enhancements to the TPB's sanctions regime from December 2023 to January 2024," Treasury said.

"The government subsequently announced the reforms to the regime in the 2025-26 Budget as part of the Enhancing Tax Practitioner Regulation and Compliance receipt measure. The measure also implements recommendations of the 2019 review of the TPB."

Registered tax agents and BAS agents are regulated by the TPB, which decides whether to register an entity as a tax practitioner and investigates conduct that may have breached the Act or an instrument made under the Act. The Act and the Regulations form the legislative framework within which the TPB operates.

The Amending Act introduces new offences and civil penalties, and gives the TPB a suite of new enforcement powers.

The Amending Regulations amend the Tax Agent Services Regulations 2022 to ensure that breaches of new provisions of the Act and the use of the TPB's powers are reflected on the Register, reflecting the publication requirements under the existing enforcement regime.

"The Amending Regulations will ensure that the Register continues to provide a comprehensive public resource for taxpayers who wish to locate a tax practitioner and engage their services," Treasury said.

"By requiring the Register to include information about tax practitioner misconduct members of the public are empowered to make better, more informed decisions about an entity's suitability to provide tax agent services."