Tax Agent Services Act (TASA) Changes
Some significant changes to the Tax Agent Services Act (TASA) come into effect from 1st July 2025. These changes impose additional requirements on tax agents when providing any tax agent services.
These updates have been introduced by the Tax Practitioners Board (TPB) through the Act to promote even greater clarity and consistency across the tax profession.
At AGS, we already hold ourselves to a high professional standard — these changes simply formalise many of the practices we’ve long had in place. That said, there are a few small adjustments you may notice in how we work with you going forward.
We may request documentation that you have not previously been required to provide or that you have not submitted in prior years. Additionally, we might ask for further disclosures related to your deductions. Please be prepared to supply comprehensive documentation to verify any deductions claimed in your income tax return, especially for significant or material items.
If you are asked to provide information or documents for the first time, this is simply to ensure accuracy and compliance with current requirements. We appreciate your cooperation and are here to assist you through the process.
The new obligations seek to enhance the high professional and ethical standards expected by the community of registered tax practitioners, with the objective of:
- improving transparency and accountability
- giving the public greater confidence and trust in the integrity of the tax profession
- strengthening tax system integrity and the regulation of the tax profession
The impact of these changes is that we may now require additional information from you in order to complete your return.
New Key Responsibilities under the Code
Mandatory Correction of False or Misleading Statements
The Determination now requires tax agents to correct any false, inaccurate, or misleading statements made to the Tax Practitioners Board (TPB) or the Australian Tax Office (ATO), regardless of whether the client agrees.
Under the Code, tax agents must not:
Make knowingly false, incorrect, or misleading statements to the TPB or ATO.
Prepare such statements intended for submission to these bodies.
Allow or direct others to make such statements.
If a tax agent becomes aware that such statements have been made or prepared, they must:
Take reasonable steps to correct them—even if it conflicts with client instructions.
Inform the individual responsible for the statement that it should be corrected.
Notify the TPB or ATO if the statement is not corrected within a reasonable period—this applies even if the client opposes correction.
We now have a formal obligation to disengage from clients who are not doing the right thing. If a client is knowingly providing false or misleading information, or refusing to comply with tax laws, we are required to cease acting for them. While this has always aligned with our ethical standards, it is now an explicit requirement under the updated Code of Professional Conduct.
Disclosure Obligations to Clients
Tax agents must inform both current and prospective clients about:
Any matters from July 1, 2022, onward that could affect the client’s decision to engage the agent (retrospective disclosure).
How clients can access and search the Tax Practitioners Board (TPB) register via the website.
How to lodge complaints against the agent, including through the TPB.
Updating websites, letters, and email signatures can fulfill the requirements for sharing information on accessing the TPB register and filing complaints.. Likely required disclosures include:
Prior breaches of the Tax Agent Services Act (TASA).
Current or past TPB investigations or sanctions.
Any conditions on the agent’s registration.
Use of disqualified entities related to the client.
Agents should update all relevant communications to comply and carefully assess if further disclosures under the retrospective rule are necessary.
Other Core Obligations under the Code
Promoting and Upholding Ethic Standards
Tax agents must:
Uphold and promote the Code.
Avoid actions that damage public trust or undermine the profession’s integrity.
Report significant breaches to the TPB.
Significant breaches include, but are not limited to:
Failing to remove staff from questionable projects.
Concealing or destroying evidence of misconduct.
Taking adverse actions against individuals raising concerns.
Encouraging or ignoring unethical behaviour.
Handling Conflicts of Interest with Government
Tax agents are required to identify, disclose, and manage conflicts of interest when working with government agencies—but this generally applies to a limited number of cases.
Confidentiality with Government Agencies
Tax agents must not disclose or misuse information received from government agencies unless legally required or permitted. This is typically not a widespread concern for most agents.
Record-Keeping Requirements
Tax agents must maintain detailed records of services provided in English (or easily translatable) for at least five years, including all relevant advice and communications. This may reduce reliance on oral advice, requiring documentation of all client interactions.
Providing Competent Services
Tax agents must ensure that anyone providing services on their behalf possesses the necessary skills and is properly supervised. This involves establishing processes for competency, supervision, and oversight—recommendations include updating internal policies, work systems, and CPD records.
Maintaining Quality Management Systems
Tax agents should establish and sustain a quality management system covering governance, monitoring, record-keeping, confidentiality, conflict management, and staff management. The complexity of these systems depends on the firm’s size, with smaller practices needing to implement core controls for files, conflicts, software, policies, and client onboarding/disengagement processes.
You can read more about the changes introduced by the TPB here.