Insurance Burden for Tax Agents?

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Do you provide BAS services for clients? The Australian Financial Review reported last week (29 October) that the Tax Practitioners Board have declared that all tax and business activity statement agents must have professional indemnity insurance.

As the TPB has not specified a minimum turnover in the recently released exposure draft for its new rules, from July next year anyone who prepares tax or BAS returns will be required to have a minimum of $250,000 professional indemnity coverage. The National Institute of Accountants has warned this change will make it very difficult for small practitioners to remain in business.

Another requirement being considered by the TPB is that tax professionals must do at least 15 hours of continuing professional development or continuing professional education a year.

The net effect of the proposals is to ensure BAS agents now have  the same level of regulation as tax agents.

Will keep you advised as I hear of further developments.

© Lyn Prowse-Bishop – www.execstress.com

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