Australian Tax Agents are now facing stricter professional responsibilities. If they discover that a client, or even they themselves, have submitted a materially false or misleading statement to the Australian Taxation Office (ATO), they may be legally required to report it. Even if the agent advises the client to correct the error and the client refuses, the agent could still be obligated to notify the authorities.

This is not just a procedural update, it’s a wake-up call for some. The days of finding a Tax Agent willing to “bend the rules” should be well and truly over.

Compliance isn’t optional

If your Tax Agent seems overly cautious or insists on following every regulation to the letter, here’s why:

• Taxes fund essentials – Vital infrastructure, services and defence are funded by our taxes. Your Tax Agent’s role is to help you stay compliant, contribute fairly, and avoid legal issues.
• It is their professional responsibility – Ignoring these new obligations could cost your Tax Agent their registration, reputation, and livelihood.

What a reputable Tax Agent does

A skilled tax professional isn’t there to help you dodge tax, rather they’re there to help you navigate it smartly and legally. You should expect them to:

• Offer strategic advice – Tax Agents can assist you to manage and legally minimise your tax, whilst protecting you from risk, and helping you make informed decisions.
• Design tax-effective structures – They can also help you weigh the cost of complexity and compliance against any potential tax savings.
• Highlight long-term consequences – Deferring tax might seem appealing now, but it can lead to higher costs later. For example, Division 7A loans come with compliance burdens and may result in more tax overall. Plus, delaying payments can create future cash flow headaches.

Five signs you’ve found the right Tax Agent

When choosing a Tax Advisor, look for these qualities:

1. Integrity and transparency – They’ll tell you what is allowable within the tax law parameters, not just what’s possible.
2. Proactive communication – They will reach out before deadlines and flag issues early.
3. Tailored advice – They understand your business or personal situation and offer solutions that fit your specific circumstances.
4. Written recommendations – They document their advice to protect you and themselves.
5. Commitment to compliance – They stay up to date with tax law changes and won’t risk your future for short-term gains.

Getting real value from your Tax Agent

To make the most of your relationship with your Tax Advisor:

• Avoid bargain-basement pricing -The cheapest option may not be the best option. As the saying goes, “You get what you pay for.”
• Pay for proper advice – and get it documented – Applying concessions without written guidance could expose you to penalties if things go wrong.
• Treat their expertise with respect – Consult them early, rely on their judgement, and compensate them fairly. Their advice could save you from costly errors or compliance issues.

Learn More

If you would like to discuss your tax needs or any of the above areas, contact Angela Stavropoulos or Kristy Baxter on taxmed@pilotpartners.com.au or (07) 3023 1300.