• prescribed qualifications and relevant work experience requirements for registration as a tax agent or business activity statement (BAS) agent
• application fees for registration as a tax agent or BAS agent
• prescribed requirements for recognition as a recognised BAS agent association and recognised tax agent association
• allowances and expenses payable to those required to attend an investigation of the Tax Practitioners Board
• administrative assistance to be provided to the Board
• information that the Board must maintain on the register of registered and deregistered tax agents and BAS agents.

• ascertaining or advising an entity about the liabilities, obligations or entitlements of the entity, or another entity, that arise, or could arise, under a BAS provision
• representing an entity in dealings with the Commissioner in relation to a BAS provision
• that is provided in circumstances where the entity can reasonably be expected to rely on the service for the purpose of
• satisfying liabilities or obligations that arise, or could arise, under a BAS provision, or
• to claim entitlements that arise, or could arise, under a BAS provision.

See section 90-10 of the TASA 2009.

What is a BAS provision?

BAS provisions include:

GST law

wine equalisation tax law

luxury car tax law

pay as you go (PAYG) instalments

PAYG withholding

fuel tax law

fringe benefits tax instalments (relating to collection and recovery only).

See section 995-1 of the Income Tax Assessment Act (ITAA) 1997.

Registration of BAS agents
Who needs to register as a BAS agent?

Only those entities providing BAS services for a fee need to register. This means that people providing BAS services for their employer (and are paid a wage for their services) do not need to register.
Who can be registered as a BAS agent?

The new legislation makes provision for the following to be registered as BAS agents:

individuals (including those in the capacity of a trustee of a trust)

partnerships

companies (including those in the capacity of trustee of a trust).

When can I apply to register as a BAS agent under the new legislation?

The provisions creating the new regulatory regime for the registration of tax agents and BAS agents have yet to commence. The date of commencement of these provisions is 1 March 2010. Therefore you are not required or able to apply for registration under the TASA 2009 until this time.

How do I register as a BAS agent under the new legislation?

From 1 March 2010, you can apply to the Tax Practitioners Board for registration. You will be required to use a form approved by the Board, include any documentation required by the Board and pay the prescribed registration fee.

Further information will be released as it becomes available on the Tax Practitioners Board website.
What are the application fees for BAS agent registration?

The TAS Regulations 2009 include fees of:

$100 - for registration as a BAS agent who carries on a business

$50 - for registration as a BAS agent who does not carry on a business as a BAS agent.

These fees relate to the entire period of your registration (see below).

How long will I be registered for?

Once the Board has approved your application, you will be registered for at least three years.

Do I need an Australian Business Number (ABN) to register as a BAS agent?

No, the TASA 2009 does not require you to have an ABN to be eligible for registration as a BAS agent.

There are however other tax law and administrative considerations which may make holding an ABN relevant to your circumstances. You should seek independent advice.

Eligibility requirements
What are the requirements for registration as a BAS agent under the new legislation?

An individual aged 18 years or more is eligible for registration as a registered BAS agent if the Tax Practitioners Board is satisfied that the individual:

a. is a fit and proper person
b. meets the requirements prescribed by the regulations including requirements relating to qualifications and experience.

A partnership is eligible for registration if the Board is satisfied that:

a. each partner who is an individual is:
i. aged 18 years or more
ii. a fit and proper person

b. if a company is a partner:
i. each director of the company is a fit and proper person
ii. the company is not under external administration
iii. the company has not been convicted of a serious taxation offence or an offence involving fraud or dishonesty during the previous five years

c. the partnership has a sufficient number of individuals, being registered tax agents or BAS agents, to provide BAS services to a competent standard and to carry out supervisory arrangements.

A company is eligible for registration if the Board is satisfied that:
a. each director of the company is a fit and proper person
b. the company is not under external administration
c. the company has not been convicted of a serious taxation offence or an offence involving fraud or dishonesty during the previous five years
d. the company has a sufficient number of individuals, being registered tax agents or BAS agents, to provide BAS services to a competent standard and to carry out supervisory arrangements.

Transitional arrangements in relation to BAS agent registration are discussed in What are the transitional arrangements for BAS agent registration?

See section 20-5 of the TASA 2009.

What is fit and proper?

To be eligible for registration under the new legislation, the Tax Practitioners Board must be satisfied that an applicant is a fit and proper person. The fit and proper person requirement applies to individuals, each individual partner (for partnerships) and each director of a company (for partnerships/companies).

In deciding whether an individual is a fit and proper person, the Board must have regard to whether:

the individual is of good fame, integrity and character

an event affecting the individual’s continued registration happened to the individual in the past five years

the individual had the status of an undischarged bankrupt at any time during the previous five years

the individual had served a term of imprisonment, in whole or in part, at any time during the previous five years.

An event affecting an entity's continued registration occurs if the entity:

is convicted of a serious taxation offence

is convicted of an offence involving fraud or dishonesty

is penalised for being a promoter of a tax exploitation scheme (under subsection 290-50(1) of Schedule 1 to the Taxation Administration Act 1953 (TAA 1953))

is penalised for implementing a scheme that has been promoted on the basis of conformity with a product ruling in a way that is materially different from that described in the product ruling (under subsection 290-50(2) of Schedule 1 to the TAA 1953)

becomes an undischarged bankrupt or goes into external administration (as defined in the Corporations Act 2001)

is sentenced to a term of imprisonment.

See sections 20-5, 20-15 and 20-45 of the TASA 2009 and Chapter 2, paragraph 2.45 explanatory memorandum to the TASA 2009.
What are the qualification and experience requirements for BAS agents under the new legislation?

To be eligible for registration as a BAS agent, an individual must meet one of the following requirements prescribed in Schedule 2, Part 1 of the TAS Regulations 2009:

i. accounting qualifications
ii. membership of a professional association - recognised BAS agent association or recognised tax agent association

See Schedule 2, Part 1 of the TAS Regulations 2009.
Eligibility requirements for BAS agents

i. Accounting qualifications
(Schedule 2, Part 1, Division 1, Item 101) 1. Individual has been awarded at least a Certificate IV Financial Services (Accounting), or a Certificate IV Financial Services (Bookkeeping) from:
a) a registered training organisation
b) an equivalent institution

2. Has successfully completed a course in basic GST/BAS taxation principles that is approved by the Board

AND

3. Has undertaken at least 1,400 hours of relevant experience in the preceding three years.
ii. Membership of professional association – a recognised BAS agent association or a recognised tax agent association
(Schedule 2, Part 1, Division 1, Item 102) 1. Individual has been awarded at least a Certificate IV Financial Services (Accounting), or a Certificate IV Financial Services (Bookkeeping) from:
a) a registered training organisation
b) an equivalent institution

2. Has successfully completed a course in basic GST/BAS taxation principles that is approved by the Board

3. Individual is a voting member of a recognised BAS agent association or a recognised tax agent association

AND

4. Has undertaken at least 1,000 hours of relevant experience in the preceding three years.

Transitional arrangements in relation to BAS agent registration are discussed in What are the transitional arrangements for BAS agent registration?
What does relevant experience for BAS agents mean?

Relevant experience means work by an individual:

a. as a tax agent or BAS agent registered under the TASA 2009
b. as a tax agent registered under Part VIIA of the ITAA 1936
c. under the supervision and control of a tax agent or BAS agent registered under the TASA 2009
d. under the supervision and control of a tax agent registered under Part VIIA of the ITAA 1936
e. of another kind approved by the Tax Practitioners Board

in the course of which the individual's work has included substantial involvement in one or more types of BAS services.

Work by an individual of a kind approved by the Board' is a matter for the Board to determine.

See Schedule 2, Part 1, Division 2, item 103 of TAS Regulations 2009.
What does a sufficient number of individuals for partnerships and companies mean?

There is no set formula for determining the number of registered individuals that a company or partnership is required to have to satisfy this requirement.

The Tax Practitioners Board may provide further guidance on adequate staffing and supervision from time to time.

In providing such guidance, the Board may take into account factors that may include, but are not limited to the:

size of the business

services being offered

conditions that may be imposed on the entity's registration

supervisory arrangements in place.

Under subsection 50-30 (2) of the TASA 2009, a civil penalty may apply if:

a. you are a registered tax agent or BAS agent who is an individual, and

b. you sign a declaration or other statement in relation to a taxpayer that is required or permitted by a BAS provision, and

c. the document in relation to which the declaration or other statement is being made was prepared by an entity other than:

i. you
ii. a registered tax agent or BAS agent who is an individual
iii. an individual who is working under your supervision and control or the supervision and control of another registered tax agent or BAS agent who is an individual.

Subsection 50-30 (4) of the TASA 2009 provides for civil penalties for BAS agent partnerships and companies which similarly contravene.

What is a recognised BAS agent association?

A recognised BAS agent association is an organisation that:

applies to the Tax Practitioners Board for recognition in accordance with the TAS Regulations 2009 (See Part 1, item 4), and

the Board decides to recognise in accordance with the Regulations (see Schedule 1, Part 1 which sets out the requirements for a recognised BAS agent association).

See Part 1, item 4 and Schedule 1, Part 1 of the TAS Regulations 2009.
What is a recognised tax agent association?

A recognised tax agent association is an organisation that:

applies to the Tax Practitioners Board for recognition in accordance with the TAS Regulations 2009 (See Part 1, item 5), and

the Board decides to recognise in accordance with the Regulations (see Schedule 1, Part 2 which sets out the requirements for a recognised tax agent association).

See Part 1, item 5 and Schedule 1, Part 2 of the TAS Regulations 2009.
Do you need to be a member of a professional association to be registered?

There is no requirement that an individual applying for BAS agent registration must be a member of a recognised BAS agent or tax agent association.

An individual who is not a member of a recognised BAS agent or tax agent association may still apply for registration provided they meet the registration criteria in the new legislation.

Transitional arrangements in relation to BAS agent registration are discussed in What are the transitional arrangements for BAS agent registration?

Currently, there are no recognised BAS agent associations within the meaning of the new legislation.
What courses are available to satisfy the registration requirements?

The prescribed academic qualifications required to satisfy the criteria for registration are set out in What are the qualification and experience requirements for BAS agents under the new legislation?

Further information on specific courses may be available from relevant course providers or from professional bodies.

Can the Board impose conditions on the registration of a BAS agent?

The Tax Practitioners Board may impose one or more conditions on the registration of a BAS agent concerning the subject area in which that entity provides BAS services.

In determining whether it is appropriate to impose such conditions, the Board must consider:

for an individual - the requirements prescribed in the TAS Regulations 2009 concerning the individual's qualifications and relevant experience for registration as a BAS agent

for a company or partnership - the requirements prescribed in the TAS Regulations 2009 concerning the qualifications and relevant experience for registration as a BAS agent of those providing BAS services for the company or partnership.

See sections 20-5, 20-25 (5) - (7) of the TASA 2009.
Transitional arrangements
Are there transitional arrangements for registration of BAS agents?

Yes. The transitional arrangements for registration for BAS agents are included in the Transitional Act.
What are the transitional arrangements for BAS agent registration?

During the transitional period there are three ways in which a BAS agent may become registered under the new legislation. These are:

i. applying for BAS agent registration under the TASA 2009
ii. notifying the Tax Practitioners Board under the Transitional Act
iii. applying for BAS agent registration under the Transitional Act.
Transitional arrangements for BAS agents

i. Applying for BAS agent registration under TASA 2009
(Section 20–5 TASA 2009) Although not strictly a transitional arrangement, it is important to note that if an applicant meets the criteria for registration as a BAS agent under section 20–5 of the TASA 2009, including the requirements prescribed by the draft TAS Regulations 2009 relating to qualifications and experience, they may, from 1 March 2010, apply for BAS agent registration.

ii. Notifying the Board under Transitional Act
(Schedule 2, Part 2, section 5 of Transitional Act) Under this transitional arrangement, an entity that notifies the Board within the prescribed time that the entity meets certain conditions, will be taken to be registered for a two (2) year period beginning on 1 March 2010.

Who does this apply to?
- an individual that was, immediately prior to 1 March 2010, providing a BAS service under the old law, that is they were a person referred to in paragraphs 251L(6)(a), (b) or (c) of the ITAA 1936 and were providing BAS services within the meaning of section 251L(7) of the ITAA 1936, OR
- an entity that was, immediately prior to 1 March 2010, providing a BAS service (as defined under TASA 2009) other than a BAS service under old law.

What is an entity required to do for this to apply?
If this transitional arrangement applies to an entity, that entity has six (6) months from 1 March 2010 to notify the Board, in the approved form, that this transitional arrangement applies to the entity.

What is the effect of this transitional arrangement?
The entity does not have to meet the registration requirements and is taken to be registered for a two year period beginning 1 March 2010. This two (2) year period will commence on 1 March 2010, irrespective of when the entity notifies the Board that this transitional arrangement applies.
iii. Applying for BAS agent registration under Transitional Act
(Schedule 2, Part 3, section 14 of Transitional Act) Under this transitional arrangement, an entity that applies for registration under the new law, within the prescribed time, and meets certain conditions, will be eligible for registration under the new law without having to satisfy certain registration requirements.

Who does this apply to?
An entity that has been providing BAS services to a competent standard for a reasonable period before an application is made.

What is an entity required to do for this to apply?
An entity must apply for registration under the new law within three (3) years from 1 March 2010 for this transitional arrangement to apply.

What is the effect of this transitional arrangement?
The entity and associated individuals, in the case of partnership and company entities, must still satisfy the fit and proper person requirements prescribed under the TASA 2009.

The entity is not required to satisfy the registration requirements relating to:
- in the case of an individual – the requirements prescribed by the TAS Regulations 2009, including, but not limited to, requirements relating to qualifications and experience, or
- in the case of a company or partnership – the requirement that the partnership or company has a sufficient number of registered individuals to provide BAS services and carry out supervisory arrangements.

If registered, the entity’s registration will continue for a period of at least three (3) years.

This table is based upon the Transitional Act.

Note: Where an entity notifies the Board under the Transitional Act and subsequently applies to register as a BAS agent under the Transitional Act, the Board can determine a period of registration in relation to the application of at least 12 months, rather than at least three years. The intention is that BAS agents do not remain registered for five years without satisfying the registration requirements concerning proper qualifications (see Schedule 2, Part 3, section 14(2)).

In relation to (i) - (iii) above, the Board may impose conditions on these registrations and may require the registered entity to maintain professional indemnity insurance. These entities will be subject to the provisions of the TASA 2009, except where otherwise provided by the Transitional Act, including the code of professional conduct and civil penalty provisions.
Are you providing BAS services within the meaning of section 251L of the ITAA 1936?

The transitional arrangement outlined in (ii) of the Transitional arrangements for BAS agents provides that an individual who was, immediately prior to 1 March 2010, providing a BAS service under the old law (that is, they were a person referred to in section 251L (6) of the ITAA 1936 and were providing BAS services within the meaning of section 251L (7) of the ITAA 1936) will be taken to be registered for two years, commencing on 1 March 2010, if that individual notifies the Tax Practitioners Board that they fulfil this requirement.

In addition, the transitional arrangement outlined in (iii) of the Transitional arrangements for BAS agents applies to an entity that has been providing BAS services to a competent standard for a reasonable period before an application is made. It is considered that if an entity was providing these services in contravention of section 251L of the ITAA 1936 (that is, they were not a person referred to in section 251L (6) of the ITAA 1936 and were providing BAS services within the meaning of section 251L (7) of the ITAA 1936) then the Tax Practitioners Board would need to consider whether the fit and proper requirement for registration could be met.

While the Board is not responsible for administering the current law under the ITAA 1936, the Tax Office website provides a self assessment tool to help individuals establish whether they qualify as a provider of a BAS service for a fee in accordance with sections 251L (6)(a) and 251L(6)(b) of the ITAA 1936.
Legal responsibilities of BAS agents
What are a BAS agent's legal responsibilities?

Registered entities will be subject to the provisions of the TASA 2009. This includes the code of professional conduct in section 30-10 and the civil penalty provisions in Part 5.

It is likely that guidance in relation to these responsibilities under the new legislation will be released by the Tax Practitioners Board once the Board is established.
What is the code of professional conduct?

The code of professional conduct is a legislated code contained within the TASA 2009 which sets out the professional and ethical standards required of tax agents and BAS agents. It outlines the duties that agents owe to their clients, the Tax Practitioners Board and other agents.

The code applies to all registered tax agents and BAS agents.

See Part 3 of the TASA 2009.
Does the new legislation require a BAS agent to audit clients' records?

BAS agents are only required to take reasonable care in ascertaining their clients' state of affairs to the extent that the state of those affairs is relevant to the service that they have been engaged to provide. Therefore, the requirement is subject to the scope of the engagement between a BAS agent and their client.

See explanatory memorandum, TASA 2009, Chapter 3.
Will a BAS agent be required to maintain professional indemnity insurance?

The TASA 2009 provides that the Tax Practitioners Board may require a registered BAS agent to maintain professional indemnity insurance.

The Board may specify the professional indemnity insurance a registered BAS agent is required to maintain.
What are the civil penalty provisions?

Division 50 of the TASA 2009 contains civil penalty provisions. If an entity breaches a civil penalty provision, the Tax Practitioners Board may apply to the Federal Court for an order that the entity pay a pecuniary penalty.

Subject to the provisions of Division 50 of the TASA 2009, an entity will contravene a civil penalty provision if the entity:

provides a tax agent service, including a BAS service, for a fee while not being registered under the TASA 2009 to provide that service

advertises that they can provide a tax agent service, including a BAS service, while not being registered under the TASA 2009 to provide that service

represents themselves as being a registered tax agent or BAS agent when, in fact, they are not a registered tax agent or BAS agent.

Subject to the provisions of Division 50 of the TASA 2009, where the entity is a registered tax agent or BAS agent, the entity will contravene a civil penalty provision if the entity:

makes false or misleading statements to the Commissioner

employs or uses the services of a de-registered entity

signs a declaration or statement that was prepared by an unregistered entity that was not working under the supervision or control of a registered tax agent or BAS agent.

See Division 50 of the TASA 2009.
Need more information?

Further information will be released as it becomes available on the Tax Practitioners Board's website at www.tpb.gov.au

Useful Links

Tax Agent Services Act 2009

Tax Agent Services Regulations 2009

Tax Agent Services (Transitional Provisions and Consequential Amendments) Act 2009

Tax Agent Services Act 2009 Explanatory Memoranda