TPB releases guidance on new sanctions powers

From 1 October 2026, the TPB will be able to impose new criminal penalties on unregistered entities, new civil penalties for breaches of the Code of Professional Conduct by registered tax practitioners, and penalties for false or misleading statements made by unregistered entities.

It can also increase maximum civil penalty amounts, issue infringement notices for contraventions or alleged contraventions of certain civil penalty provisions, and accept enforceable undertakings in relation to compliance with the Tax Agent Services Act (TASA).

The TPB can now also apply contingent suspension powers for registered tax practitioners who fail to comply with certain registration requirements, and interim suspension powers where an immediate response is required for serious and high-risk misconduct.

The maximum non-application period for registration following termination has also been increased from five to 10 years.

In its guidance, the TPB said the changes to the sanctions framework primarily target misconduct and non-compliance within the tax profession.

“They are intended to impose an additional regulatory burden on registered tax practitioners who are already meeting their professional obligations,” the board said.

“We will adopt a measured, proportionate and risk-based approach to implementing the enhanced framework, and deciding the most appropriate response to misconduct, supporting registered tax practitioners and other entities to understand the new sanctions through clear guidance, education, and engagement.”

“Regulatory action will be proportionate to the circumstances and determined in accordance with our established compliance approach.”

The TPB said the enhanced sanctions framework provides the TPB with a greater range of compliance and enforcement tools, including for lower- and medium-level misconduct.

“This will allow us to take a more graduated and proportionate approach to non-compliance and impose sanctions that are reflective of the seriousness and nature of the misconduct.”

“We can continue to apply one or more sanctions, as appropriate and permitted under the TASA, depending on the type of misconduct.”

TPB chair Peter de Cure said the enhanced sanctions framework provides the TPB with a broader range of regulatory tools that should strengthen consumer protection and support confidence in the tax profession. 

“The enhanced sanctions framework gives the TPB greater flexibility to take action that reflects the seriousness of the conduct and the level of risk it presents,” de Cure said.

“The vast majority of registered tax practitioners fulfil their professional and ethical obligations and should not be concerned by these reforms. Our focus is on addressing serious misconduct and higher-risk behaviour, while continuing to support tax practitioners who maintain high professional and ethical standards.”

The TPB said it will support tax practitioners and other stakeholders to understand the new requirements through guidance, education and engagement activities.

“We are committed to working closely with the profession to ensure tax practitioners understand the changes and what they mean in practice,” de Cure said. 

The TPB said it is preparing additional guidance materials and resources on the enhanced sanctions framework, which it will publish on the TPB website in the coming months to support registered tax practitioners as the reforms are implemented and keep the broader tax profession informed.