ATO and administration
Tax Agent Services Act
The Tax Agent Services Act is the federal law that regulates who can provide tax agent and BAS services for a fee, and sets registration, qualification and conduct requirements for them.
The Tax Agent Services Act is the law that regulates people who provide tax agent services and BAS services to the public for a fee or reward. It sets out who needs to be registered, the qualifications and experience they must hold, the code of professional conduct they must follow, and the penalties that can apply to unregistered or improper activity. Its purpose is to protect consumers and maintain trust in the tax system.
The registration regime is administered by the Tax Practitioners Board, an independent body. A registered tax agent can prepare and lodge a wide range of tax matters. A registered BAS agent can provide BAS services, which broadly include preparing and lodging business activity statements and giving advice about GST, PAYG and related matters, but cannot prepare income tax returns for clients in the same way. Both types must meet fit and proper person requirements.
A key feature is the code of professional conduct. It covers honesty and integrity, independence, confidentiality, competence, and acting lawfully in the best interests of clients. Registered practitioners must also maintain professional indemnity insurance in many cases, keep their skills current and take reasonable care in applying the tax laws to a client's affairs. The Board can investigate complaints and impose sanctions.
For a small business owner, the Act matters when choosing help. Before you hire someone to prepare a BAS or give GST advice for payment, you can check the public register on the Tax Practitioners Board website to confirm they are registered. Using a registered practitioner also gives access to the agent lodgment program, which can provide extended lodgment dates for clients, subject to the conditions of that program.
Some activities fall outside the regime. Bookkeepers who only record transactions, enter data, and reconcile accounts, without providing BAS services under the Act, are not necessarily required to be registered, though many choose to register as BAS agents. The distinction lies in whether they are providing a BAS service, for example by preparing a BAS or giving advice about GST or other BAS matters, in which case registration is generally required.
A common misunderstanding is that any accountant or bookkeeper can lodge your BAS and give GST advice. In fact, the law restricts those services to registered practitioners when they are provided for a fee. Another is assuming that using a practitioner removes your responsibility. You remain responsible for the accuracy of what is lodged, so give your agent complete and honest information. This is general information only, so confirm requirements with the Tax Practitioners Board, the ATO or a registered tax professional.
Worked example
A cafe owner pays a local bookkeeper $400 per quarter to prepare and lodge her BAS. Before continuing, she searches the public register and finds the bookkeeper is not registered as a BAS agent. She switches to a registered BAS agent charging $450 per quarter, which includes the lodgment. The extra $50 gives her the protection of the professional standards and the conduct rules.
Practical tips
- Check a practitioner's registration on the public register before paying them for BAS or tax advice.
- You remain responsible for what is lodged, so supply complete records and review the figures before lodgment.
- Ask what services are included in the fee, such as lodgment, GST advice and handling ATO correspondence.