iscover TPB to bypass investigation step in new 90-day suspension powers
BusinessOne tax expert has stressed that the proposal to grant the board the power to impose an interim suspension on a tax agent without prior investigation carries a pecuniary consequence.
Treasury’s latest amendment to the Tax Agent Services Act 2009 (TAS Act), Treasury Laws Amendment (Strengthening Accountability for Tax Adviser Misconduct and Other Measures) Bill 2026, aims to empower the TPB to impose a 90-day suspension on tax agents without the need for natural justice, with the explanatory memorandum saying that “multiple periods of suspension may be imposed”.
“Without first undertaking an investigation, the TPB may suspend registration for up to 90 days where the TPB is satisfied a practitioner has engaged in conduct that may breach a criminal offence or civil penalty provision in the taxation law,” the EM said.
“The TPB is not required to consult with the registered tax agent or BAS agent before deciding to impose the suspension. The person is told about the suspension through a written notice,” it added.
“So insufficient CPD hours, or a slip in your personal tax obligations, could result in an infringement notice,” National Tax & Accounting Association senior advocate Robyn Jacobson (pictured) wrote in a LinkedIn post.
Speaking to Accountants Daily, Jacobson said the setting aside of natural justice “seems to be the one aspect that is most concerning because of the risk of getting it wrong”.
The two points of misconduct that the EM said would be grounds for suspension are if there is or may be a significant risk of material loss or damage to a client of a practitioner, she said, or if there may be a significant risk to Commonwealth revenue or the integrity of the tax system.
She stressed that while a tax agent’s registration can be reinstated, their clients will be directly affected during the 90-day suspension due to the agent’s revocation of access to online services for agents (OSFA).
“If you're a practitioner and you lose access to OSFA, then your clients are left unable to lodge or pay and effectively no one's able to manage their affairs unless they are transferred to another agent,” she said.
“Also, there's the reputational damage that [occurs] once an agent's registration is suspended. Even if it is later reinstated, then the clients are still likely to question the integrity of the practitioner.”
Jacobson said that although the thinking behind this proposal is sound, the law must strike a balance between protecting the community from professional misconduct and avoiding risks to practitioners' professional reputations or viability.
This proposed change to the TAS Act originates from a 2019 review of the TPB, which recommended mid-range sanctions for mid-range breaches, Jacobson said.
The bill is currently before the House of Representatives.
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Carlos Tse
Carlos Tse is a graduate journalist writing for Accountants Daily, HR Leader, Lawyers Weekly.