iscover Government sidestepping ethics, professional accountability recommendations, IPA says
RegulationThe federal government’s response to the Parliamentary Joint Committee report on ethics and professional accountability has not suitably addressed or adopted key reforms, according to the IPA.
The representative body has expressed concern over the governmental response to the Parliamentary Joint Committee's (PJC) recommendations aimed at improving governance, transparency and accountability within large partnerships, following an inquiry into past misconduct, potential conflicts of interest and the effectiveness of current regulations.
PCJ recommendations included proposed limits to partnership sizes, an appropriate penalty regime appropriate to misconduct, a protected definition of the term “accountant”, introduction of a consultancy code and stronger whistleblower protections.
However, smaller firms will feel the brunt of these changes whilst not being to blame in the first place, representing a missed opportunity to correct overreaching issues, according to IPA chief executive officer Andrew Conway.
Conway said: “The PJC provided a clear and practical roadmap for reform - yet the Government has sidestepped the very measures needed to restore trust and accountability.”
The issue is failure to provide targeted regulation while small tax practitioners face escalating compliance obligations, extended investigation timeframes and mounting administrative pressure.
Tax agents, Conway added, now face breach reporting obligations that require judgment on others’ professional conduct.
“We have eight new Code requirements, including onerous obligations to disengage from a client or report a client to the ATO.”
“Small practitioners are carrying a disproportionate regulatory load, with no corresponding action to address misconduct where it actually occurred.”
“This is discouraging new entrants, exhausting existing practitioners, and weakening the profession's long-term sustainability.”
The IPA continues to call for governmental reconsideration of the PJC’s recommendations and has urged more definitive steps towards systemic rather than just regulatory reform.
Amelia is a Professional Services Journalist with Momentum Media, covering Lawyers Weekly, HR Leader, Accountants Daily and Accounting Times. She has a background in technical copy and arts and culture journalism, and enjoys screenwriting in her spare time.
