Tax Practitioners Board Code of Conduct: what every registered tax practitioner must do

What the Code is

The Tax Practitioners Board (TPB) Code of Professional Conduct is established in section 30-10 of the Tax Agent Services Act 2009. It sets out the standards of conduct expected of those registered with the TPB.

The Code applies to all registered tax agents, BAS agents and tax (financial) advisers. It is a key document in maintaining public confidence in the tax profession.

The Code addresses several core areas of professional behaviour, including:

• Honesty and integrity
• Independence
• Confidentiality
• Competence
• Lawful conduct

The core obligations

Registered tax practitioners must adhere to a set of core obligations as outlined by the Tax Practitioners Board. These obligations are designed to ensure the integrity of the tax profession and protect the interests of clients. The fundamental principles require practitioners to act honestly and with integrity, extending to compliance with taxation laws in their own personal affairs.

Practitioners are also bound by obligations of independence and confidentiality. This means acting lawfully in the best interests of clients and having systems in place to manage potential conflicts of interest. Information acquired from clients must not be disclosed without their consent, except where legally required.

Finally, registered tax practitioners have responsibilities relating to competence and other professional conduct. This includes maintaining relevant knowledge and skills, exercising reasonable care when gathering information about a client’s circumstances, applying tax laws correctly, avoiding false or misleading statements, and ensuring they do not employ individuals who are disqualified.

• Maintain professional indemnity insurance.

The 2024 amendments

The Tax Agent Services (Code of Professional Conduct) Determination 2024 introduced eight additional obligations for registered tax practitioners. These changes came into effect from 1 August 2024, although the application of some obligations is phased.

The new obligations address areas of concern raised by the public, particularly regarding the misuse of confidential information and broader tax-agent ethics. Registered tax practitioners must now, for example, keep clients informed of significant matters that may influence them, report breaches of the Code by other agents, and prevent the misuse of clients’ Tax File Numbers and other identifying information.

Furthermore, the amendments place a greater emphasis on transparency in communications with clients. Registered tax practitioners must ensure that all client-related communications are clear and understandable.

Enforcement

The Tax Practitioners Board (TPB) is responsible for enforcing the Code of Conduct. The TPB can investigate suspected breaches of the Code and, if a breach is found, impose sanctions. These sanctions may include a written caution, suspension or termination of registration, civil-penalty proceedings, or an order to undertake additional continuing professional education (CPE).

Termination of registration is a significant sanction. It generally prevents a registered tax practitioner from providing tax-agent services and from seeking re-registration for a minimum period of 12 months.

Decisions made by the TPB regarding breaches of the Code of Conduct can be reviewed by the Administrative Review Tribunal.