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The TPB’s looming reviews and investigations will focus on integrity issues and unfair tax advice between practitioners and their clients.
TPB to crack down on practitioners selling tax time loans
01 July 2025
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8 minute read
As it is now tax time, the Tax Practitioners Board (TPB) is voicing concerns towards tax practitioners providing improper tax time loans and advice to their clients contrary to their best interests.
Peter de Cure, TPB chair, said the TPB would put all tax practitioners on notice of potential harm to consumers from improper conduct.
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“The TPB is concerned that tax time loans, from tax practitioners, may not be fair in their clients’ best interests,” he said.
“Tax practitioners providing improper tax time loans may harm consumers, especially vulnerable members of our community. TPB reviews and investigations will address integrity issues and ensure tax advice is provided with care, competence and independence.”
The TPB revealed it would put practitioners on notice for improper conduct, such as high fees that were not fully transparent, failing to manage conflicts of interest when practitioners were paid percentage fees based on tax refund estimates, and failure by tax practitioners or their associates in exercising competence and reasonable care.
Not addressing client confidentiality in sharing a client’s tax and financial information between other practitioners and associated lenders, as well as not acting lawfully, in the best interests of their clients, by making incentive payments to staff when they are promoted or sell tax time loans would also land practitioners “in hot water”.
De Cure said they needed to seriously consider whether they truly acted in their clients’ best interests when they made a profit from tax time loans.
“Tax practitioners must carefully consider their legal and ethical obligations and inform their clients of the potential risks when engaging in or recommending tax time finance. It is crucial to maintain transparency and uphold the highest standards of professional conduct to ensure the protection of client interests and the Australian community.”
“We are extremely concerned that these products can harm financially vulnerable consumers, and we are addressing these issues directly with tax practitioners associated with tax time loans. If you have concerns about the tax services provided to you, discuss these with your tax practitioner first, wherever possible.”
Based on the ATO’s focus on supporting taxpayers, it was noted that practitioners must ensure their clients are aware of the risks associated with the promotion of tax time loans.
These risks spanned from the lender’s debt recovery action if the tax refund was delayed, or if it was less than their tax practitioner’s estimate.
De Cure said the TPB also regularly communicated with the government and ASIC to protect vulnerable Australians from acquiring unsuitable products.
“Tax practitioners offering these services are on notice. If you are associated with these tax time loans, review your services as a priority to ensure you comply with the law and professional standards.”
“We expect tax practitioners to address any compliance issues in a transparent and cooperative manner. Be warned, if we detect breaches of the law, we will take further action.”
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