Coalition to oppose ‘disastrous’ tax agent rules in Senate
Opposition MPs will rally crossbench support in hopes of passing a disallowance motion to reverse the government’s new code obligations.
The Opposition will move to block the government’s changes to the tax agent code of conduct, arguing that inadequate consultation and rushed drafting have made the rules "disastrous" for practitioners.
In a joint statement on Tuesday, top Liberal MPs said they would look to partner with Senate crossbenchers on a disallowance motion to reverse the unpopular changes to practitioners’ disclosure, confidentiality and record-keeping obligations.
“The Coalition will seek to disallow the Albanese Labor government’s latest move to burden tax practitioners with unnecessary and unrealistic red tape,” the statement from shadow treasurer Angus Taylor, shadow assistant treasurer Luke Howarth and senator Dean Smith said.
“The new obligations are far-reaching, poorly drafted and potentially impossible for thousands of small tax practitioners to comply with. This will drive up costs for Australians and small businesses.”
“This disastrous process is a sign of things to come under a Labor-Greens minority government.”
It comes over one month since Assistant Treasurer Stephen Jones added eight new obligations for practitioners through a ministerial determination under section 30-12 of the Tax Agent Services Act (TASA).
The government postponed the changes on the eve of the 1 August start date after heavy backlash from practitioners and professional bodies, giving small firms with fewer than 100 employees until 1 July next year to comply.
But with the substance of the determination remaining unchanged, shadow treasurer Angus Taylor (pictured) said only the Coalition could put an end to Labor’s “war on financial services professionals”.
“Labor is layering red tape upon red tape on finance professionals that just drive up costs for consumers,” he said.
The Coalition said the government’s consultation, communication and quantification of the impact of the changes had failed.
It outlined several issues with the new determination, including minimal or no consultation, unrealistic commencement timeframes, and no regulator guidance.
It also raised concerns about retrospectivity, with client disclosure requirements dating back to July 2022, and the rules’ disproportionate impact on small practices and sole practitioners.
Liberal senator Dean Smith called on crossbenchers to support the disallowance motion.
“The Coalition calls on all crossbench senators to support the disallowance and reverse the regulatory burden and uncertainties that will fall on accountants, bookkeepers, and other financial professionals at a time when they can least afford it,” he said.
Shadow assistant treasurer Luke Howarth, the first MP to call for the determination’s withdrawal, said: “Rushed and botched regulation with a lack of meaningful consultation has come to be expected from this government.”
“This pile of new red tape is unwarranted – local accountants and bookkeepers are already highly regulated and some of the most trusted professionals in our community.”
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