The Assistant Treasurer, Chris Bowen MP, today released for public comment the transitional and consequential provisions and associated explanatory material to complement the Tax Agent Services Bill 2008, which was introduced into Parliament on 13 November 2008. Together, these Bills give effect to the new regulatory regime for the provision of tax agent services.
The draft Tax Agent Services (Transitional Provisions and Consequential Amendments) Bill 2009 provides the transitional provisions and consequential amendments to facilitate the transition into the new regulatory regime.
In particular, it provides the following:
- transitional arrangements to allow tax agents and nominees registered under the current law to transition smoothly into the new regulatory regime, and similarly allow certain entities to be taken as registered Business Activity Statement (BAS) agents under the new regime;
- amendments to the Taxation Administration Act 1953 to introduce two 'safe harbour' provisions, which constitute key features of the new regulatory regime. The safe harbour provisions exempt taxpayers who engage an agent from liability for administrative penalties for certain mistakes and omissions where the error is solely due to the agent's carelessness; and
- consequential amendments to existing legislation that will be necessary upon the enactment of the Tax Agent Services Bill 2008, for example the repeal of Part VIIA of the Income Tax Assessment Act 1936 (the existing law relating to the registration of tax agents).
The Government values the input provided by interested parties through consultation. Comments received during previous public consultations on the new regulatory regime, including on the key transitional and consequential provisions exposed in mid‑2008, have led to significant improvements being made.
The Government now seeks submissions from interested parties on the exposure draft transitional Bill and explanatory material. Copies of the consultation materials are available from the Treasury website (www.treasury.gov.au) or may be obtained from the project team by telephoning 02 6263 3116.
Written comments on the consultation materials should be sent by 25 March 2009 and may be submitted by mail, facsimile or email to:
The General Manager
Business Tax Division
The Treasury
Langton Crescent
PARKES ACT 2600
Fax: 02 6263 4466
Email: taxagentservices@treasury.gov.au