Tax Agent Services (Specified BAS Services No. 1) Repeal Instrument 2026

Overview

The Tax Agent Services (Specified BAS Services No. 1) Repeal Instrument 2026, enacted to address the redundancy of the previous Tax Agent Services (Specified BAS Services No. 2) Instrument 2020, was introduced by the Tax Practitioners Board under the authority of the Tax Agent Services Act 2009. The purpose of this repeal instrument is to streamline and clarify the scope of services provided by BAS agents, aligning with recent legislative amendments and recommendations from the Review of the Tax Practitioners Board. This repeal ensures that the expanded definition of BAS services, initially outlined in the 2020 Instrument, is now incorporated directly into section 90-10 of the Tax Agent Services Act 2009, thereby rendering the 2020 Instrument obsolete. The instrument was subject to consultation with key stakeholder forums to ensure a smooth transition and maintain the integrity of BAS services provided by agents.

Scope and Application

The Tax Agent Services (Specified BAS Services No. 1) Repeal Instrument 2026 (the Repeal Instrument) repeals the Tax Agent Services (Specified BAS Services No. 2) Instrument 2020, which was registered on 5 November 2020. This Repeal Instrument is applicable to tax agents and BAS agents who provide Business Activity Statement (BAS) services, particularly in the context of the Superannuation Guarantee (Administration) Act 1992 and the Superannuation Guarantee Charge Act 1992. It applies to all Commonwealth jurisdictions in Australia, and its repeal comes into effect on the day after the Repeal Instrument is registered on the Federal Register of Legislation. The repeal is a result of amendments to the Tax Agent Services Act 2009, introduced by the Treasury Laws Amendment (2023 Measures No. 1) Bill 2023, which received Royal Assent on 27 November 2023. These amendments incorporated the services specified in the 2020 Instrument into the definition of a BAS service under the Tax Agent Services Act 2009, thereby rendering the 2020 Instrument redundant. The Repeal Instrument does not introduce any new exclusions, exemptions, or thresholds; instead, it aligns the legislative framework with the current statutory provisions. The Tax Practitioners Board has consulted with relevant professional associations to ensure a smooth transition, confirming that there are no adverse impacts on the scope of services BAS agents can provide.

Key Provisions

The Tax Agent Services (Specified BAS Services No. 1) Repeal Instrument 2026 (the Repeal Instrument) primarily serves to repeal the Tax Agent Services (Specified BAS Services No. 2) Instrument 2020 [F2020L01406] (the 2020 Instrument) registered on 5 November 2020 (section 4 and item 1 of Schedule 1). The purpose of this Repeal Instrument is to address changes made by the Treasury Laws Amendment (2023 Measures No. 1) Bill 2023 (the Bill) which received Royal Assent on 27 November 2023. This Bill amended the Tax Agent Services Act 2009 (TASA) to incorporate certain recommendations from the Review of the Tax Practitioners Board. It also amended section 90-10 of the TASA to include the expanded definition of BAS services previously outlined in the 2020 Instrument. Consequently, the 2020 Instrument is no longer necessary. The obligations imposed by the Repeal Instrument are largely procedural. The Tax Practitioners Board (TPB) is mandated to repeal the 2020 Instrument. The Repeal Instrument also requires the TPB to amend its information sheets, such as TPB(I) 38/2023, to reflect the new legislative changes. Additionally, the TPB is required to engage with its stakeholder forums to communicate the changes and seek feedback on the proposed repeal. This engagement includes representatives from professional associations such as CPA Australia, Chartered Accountants Australia and New Zealand, The Tax Institute, and the Institute of Certified Bookkeepers. The Repeal Instrument ensures that the TPB has consulted these stakeholders to maintain transparency and ensure that the changes do not adversely impact the scope of services BAS agents can provide. There are no specific offences, penalties, or civil/criminal consequences outlined for breaches of this Repeal Instrument itself. However, the underlying legislative framework, the Tax Agent Services Act 2009, includes provisions that govern the conduct of BAS agents and tax practitioners. For instance, unauthorised practice as a BAS agent can lead to civil penalties under section 110-20 of the TASA. The maximum penalty for such offences can be significant, reflecting the importance of adhering to the regulatory requirements governing tax agent services. Moreover, any actions that contravene the new definitions and scope of BAS services as outlined in section 90-10 of the TASA could result in penalties for non-compliance.