Key Documents
The government has released a consultation paper to enhance the Tax Practitioners Board’s (TPB) sanctions regime as part of the government’s response to the PwC matter, announced on 6 August 2023.
This paper relates to the priority area identified for action in the government’s PwC response: Increase the powers of our regulators.
The consultation paper will:
- enable the TPB to have the ability to impose sanctions that escalate in severity in response to more serious contraventions of the law.
- have a greater deterrence effect on misconduct and will allow the TPB to respond to misconduct in a timely manner.
The government is seeking stakeholder feedback on proposed reforms that will provide the TPB with a stronger and more agile sanctions regime.
Consultation outcomes
Changes to the TPB’s sanctions framework
The government will:
- reintroduce criminal penalties for unregistered preparers
- increase maximum civil penalties amounts in the Tax Agent Services Act 2009 (TASA)
- add infringement notice penalties for alleged contraventions of the TASA
- introduce enforceable voluntary undertakings
- create contingent and interim suspensions.
The government will broaden civil penalties in the TASA. This allows the TPB to apply to the Federal Court for civil penalties for:
- breaches of the Code of Professional Conduct by registered tax practitioners
- false or misleading statements made by unregistered preparers.
The TPB may ban a terminated practitioner from applying for registration. The government will extend the ban’s maximum period to 10 years.
The changes apply some recommendations from the Review of the TPB.
The government announced the measure in the 2025–26 Budget under Receipt Measures.
Other proposals
The government does not plan to introduce other sanctions the Review proposed. They relate to:
- quality assurance audits
- permanent disbarment
- external intervention.
Next steps
The proposed start date for the changes is 1 July 2026.
The government will consult on details for implementing these changes. This includes safeguards to protect practitioners who do the right thing.
The TPB will consult on guidance material following parliament passing legislation. The guidance will give clarity and transparency to tax practitioners and the public.