Risky business: Focus on competency have bookkeepers on notice

ABN cautiously welcomes TPB change to Code of Conduct Standards while considering implications for bookkeepers already hit hard by regulatory change.

The introduction of additional Code of Conduct obligations has the Australian Bookkeepers Network (ABN) cautious about the extra burden this now places on bookkeepers.

While the rules offer the prospect of elevating the profession to higher standards of competency, ABN Director, Darren Hagarty, says the extra scrutiny comes at a time when BAS Agents are already facing significant pressure from regulatory change.

“The technical landscape in which BAS Agents operate is growing increasingly complex,” said Darren. “The imperative for one to be competent in the services they are providing has, arguably, never been greater.”

New Code obligations might have been brought about by this growing complexity in regulation, insisting on elevated competence with significant repercussions if failing to deliver services well.

There is now a requirement that a BAS/Tax Agent notify the TPB in writing if they feel they have breached, or another BAS/Tax Agent has breached, the Code of Conduct to deliver work to a competent standard.

The repercussions are not only a significant administrative and financial burden to rectify the fault, but significant fines follow as well as predicted reputational damage.

“More care than ever is now needed when taking on risky work, especially in areas outside a BAS Agent’s expertise,” said Darren. “BAS Agents need to be careful to deal in new areas where they do not have as much knowledge because they could fall foul in significant ways.”

The ABN makes particular mention of areas where BAS Agents have experienced greater challenges. It is in these areas the ABN recommends BAS Agents are particularly mindful of seeking extra support to maintain quality standards.

ABN recommends extra training and support for clients in the following areas / industries:

• Insurance
• Second hand goods retailers
• Financial suppliers of loans, share trading, securities, hire purchase arrangements, and life insurance
• Property - buying, selling or developing
• Goods importer
• Retirement, nursing, and aged care facilities
• Cross-border supplies of services and other intangibles

Technical applications that commonly require extra support and training include:

• GST margin scheme
• Deferred GST scheme
• Simplified accounting method (SAM) for GST purposes
• GST groups, GST branches or GST joint ventures
• Self Managed Super Funds
• Wine Equalisation Tax (WET)
• Luxury Car Tax (LCT)
• Eligible Termination Payment (ETP)
• Variation of PAYG or FBT instalments

“With the right support and training, we are confident in the bookkeeping community to rise to the challenges of these technical aspects of their work,” said Darren.

“The ABN welcomes members to reach out with any concerns or questions they have about? handling anything they feel less confident in and we’ll ensure they are directed to the right support and training they need,” said Darren.

For the support you need, join as an ABN member today.