Understanding Your Tax Obligations and What to Expect From Your Tax Practitioner

As a taxpayer in Australia, it is essential to understand not only your obligations to the Australian Taxation Office (ATO), but also the professional duties that your tax practitioner is legally and ethically required to fulfil. This factsheet, provided by the Tax Practitioners Board (TPB), outlines important responsibilities on both sides of the client-practitioner relationship. It ensures that you are informed, compliant and protected when engaging the services of a registered tax or BAS agent.

Your responsibilities include being truthful and timely in providing relevant financial information to your tax practitioner, maintaining the necessary records, cooperating with reasonable requests and meeting lodgement deadlines. Failing to meet your obligations can result in significant consequences, including fines, interest charges, debt recovery actions and, in extreme cases, criminal prosecution. Understanding these obligations helps you avoid costly errors and ensures that your tax affairs remain in good standing with the ATO.

Equally important are the obligations of your tax practitioner. They are required by law and professional codes to act with honesty, integrity and competence. This includes keeping your personal information confidential, acting in your best interests while complying with the law and taking reasonable care to understand your financial situation. They must inform you of your rights and obligations under the tax laws and disclose certain events that may impact their ability to act on your behalf, such as if they’ve been subject to sanctions or limitations on their registration.

To ensure you’re working with a qualified and registered tax professional, you can search the TPB’s official register. This register provides up-to-date information about registered tax and BAS agents, including their current status, qualifications, and any disciplinary actions taken against them. Verifying a practitioner’s registration status helps you make informed choices and avoid unregistered or non-compliant providers.

This factsheet is designed to help you make informed decisions when engaging or re-engaging a registered tax practitioner. It also explains what steps to take if you have concerns or complaints. By understanding both your responsibilities and those of your practitioner, you can build a more transparent and compliant relationship that benefits your financial well-being and ensures your tax affairs are handled properly.