Explanatory Memorandum
(Circulated by the authority of the Treasurer, the Hon Wayne Swan MP)General outline and financial impact
Transition to the new regulatory regime for the provision of tax agent services
This Bill facilitates the smooth transition from the current law regarding the registration of tax agents to the new law in the Tax Agent Services Act 2009 (TAS Act) regarding the regulation and registration of tax agents and Business Activity Statement (BAS) agents.
Date of effect : Most of the provisions in this Bill will commence immediately after the commencement of Part 2 of the TAS Act. Other provisions will either commence on the day on which this Bill receives Royal Assent or at the same time as the commencement of Part 2 of the TAS Act. These dates of effect are outlined in paragraphs 1.53 to 1.58.
Part 2 of the TAS Act commences on a single day to be fixed by Proclamation. A Proclamation must not specify a day that occurs before the day on which this Bill receives Royal Assent.
Proposal announced : These proposals were announced by the then Assistant Treasurer and Minister for Competition Policy and Consumer Affairs in Media Release No. 039 of 29 May 2008.
Reform of the existing regulation of tax agents was first announced in 1998.
Financial impact : There is expected to be a cost to the revenue associated with the introduction of 'safe harbour' provisions which exempt taxpayers from administrative penalties in certain circumstances when they use a tax agent or BAS agent. However, this cost is unquantifiable.
Compliance cost impact : The compliance costs associated with the transition to the new regime, noted in the explanatory memorandum to the Tax Agent Services Bill 2008, are estimated to be:
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- small for tax agents and BAS agents with the appropriate qualifications for registration purposes; and
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- potentially large for those individuals seeking registration as a BAS agent who do not currently meet the minimum standard of educational qualifications.
Summary of regulation impact statement
Regulation impact on business
A summary of the regulation impact statement associated with the introduction of the new regulatory regime was provided in the explanatory memorandum to the Tax Agent Services Bill 2008.