What the New Tax Agent Code of Professional Conduct Means for You (from 1 July 2025)
Changes to professional standards can sometimes feel distant, but this one is different. The new Tax Agent Code of Professional Conduct, coming into effect from 1 July 2025, is designed to protect your interests and strengthen trust in the tax system. Many people aren’t even aware that a Code like this exists, so I wanted to take a moment to explain what it is, what’s changing, and how it may affect the way we work together.
Why the Code Is Changing
Recent changes to the Code were prompted by a significant breach of trust within the tax profession. In 2023, confidential government information was misused by a senior partner at PwC Australia. This event led to a thorough review of how tax professionals are regulated, resulting in clearer and stronger standards for everyone in our industry.
What the New Code Means for You
The updated Code introduces several important requirements for tax agents and, by extension, for our clients.
1: Greater Care with Information
We are now required to take extra care in ensuring that all information used in your tax returns and advice is accurate and reliable. If we believe something may be incorrect or misleading, we may need to ask additional questions, request further documentation, or, in rare cases, decline to act if the information cannot be verified. This is not about doubting your honesty; it is about making sure your tax affairs are handled correctly and in line with the law.
2: Providing Supporting Evidence
To fulfil our professional obligations, we require supporting documents for certain claims. For example, if you claim car expenses, we may ask for a logbook. For travel deductions, a travel diary may be necessary. If you are working from home, we will likely request a record of your hours or other supporting documentation to verify your work hours.
When your claims are consistent with previous years and your records are in order, there is usually nothing more to do. If something is new or unusual, we may need to clarify the details with you. This process helps keep your records compliant and protects you if the Australian Taxation Office ever asks questions.
3: Documenting Our Advice
Whenever we provide you with tax advice, we are now required to document our communication clearly and concisely. This may include a summary of our phone call, an email confirmation, notes explaining the reasoning behind our recommendations, or detailed written advice for complex matters. This approach helps you make informed decisions and ensures a clear record is maintained, in case you need to revisit the advice.
4: What You Can Expect from Us
You can continue to expect clear, well-documented advice and guidance from us. We will request the necessary information to ensure your records are accurate and compliant. Above all, we will act transparently and ethically, always with your best interests in mind.
Our Commitment to You
We welcome these changes because they reflect our core values of professionalism, integrity, and genuine care for our clients. Our goal is to give you peace of mind, knowing your tax affairs are managed to the highest standards.
If you have any questions about how the new Code may affect your records, deductions, or obligations, please contact us. We are here to help you navigate these changes with confidence and keep your business moving forward.