Joint Groups oppose giving TPB excessive powers

Mike Taylor

Managing Editor and Publisher

30 April 2026

The major accounting and advice groups have baulked at Treasury exposure draft legislation which they say would give the Tax Practitioners Board (TPB) sanctions powers beyond that of other regulators, including denial of natural justice.

The Joint Bodies have signed off on a submission to the Treasury responding to the exposure draft of the legislation Enhancing TPB Sanctions framework warning that they have particular concerns about handing the TPB the ability to immediately suspend a tax practitioner’s registration without an investigation.

They said that while the draft explanatory memorandum clearly articulates the the measure is to be used in exceptional circumstances, this caveat is not evident in the exposure draft legislation itself.

The Joint Bodies said the legislative draft is such that the TPB could suspend a tax practitioners registration over the loss of as little as $1, adding that “a substantially higher threshold should apply in this section to ensure that it operates appropriately and as intended”.

They bodies have argued that the draft legislation needs amendment to state that suspension can occur where “there will be serious and immediate harm to one or more of your clients, if the registration is not suspended”.

The submission said the need for clarity is important because the natural justice hearing rule will not apply to decisions by the TPB to use the immediate suspension power.

This means that:

• the TPB is not required to undertake a formal investigation beforehand for any suspected Code of Professional Conduct breaches;
• the tax practitioner does not have an opportunity to provide input prior to the decision being made; and
• Imposing the interim suspension at the first instance is not reviewable by the Administrative Review Tribunal.

“The Joint Bodies acknowledge that in highly egregious circumstances there is a need to act quickly. However, regulators who have similar powers, such as ASIC, do not have a clause explicitly stating that there is no requirement to apply natural justice and they are able to implement their relevant provisions effectively.

“It is suggested that clause 40-17(3) be removed as it is not consistent with other regulators,” the submission said.

It also noted the substantial lift in the “breadth and quantum” of civil penalties that can be imposed on tax practitioners while pointing out that the draft legislation does not distinguish between sole practitioners and multinational organisations that operate through companies.

“Many smaller tax practitioners do not consider that this appropriate,” it said.

The Joint Groups include Chartered Accountants ANZ, CPA Australia, the Institute of Public Accountants, the National Tax and Accountants Association, the Institute of Financial Professionals Australia, the SMSF Association and the Financial Advice Association of Australia.