THE DEFINITIVE GUIDE THE BAS AGENT

The Institute of Certified Bookkeepers

THE DEFINITIVE GUIDE

THE BAS AGENT

3rd Edition

August 2011

www.icb.org.au

Phone: 1300 85 61 81 email: [email protected] web: www.icb.org.au

Page 2

The Definitive Guide—Volume 3

All rights reserved, Copyright Institute of Certified Bookkeepers Ltd 2011 The Institute of Certified Bookkeepers Ltd is a member based company limited by Guarantee

ABN: 20 115 901 945

This guide has been updated following each relevant development of the law and systems to do with

BAS Agents. This 3rd Edition replaces and updates ―The Definitive Guide

Volume 1 – Professional Bookkeeping including NEW BAS Agent registration 16 March, 2009‖ and

―The Definitive Guide Volume 2—The new BAS Agent Regime 3 August, 2009‖

The law and guidance from the TPB continues to change, keep track at www.ICB.org.au/BAS_Agent

Subscribe to the ICB Newsletter

The Institute of Certified Bookkeepers is a

Member based

Not-for-profit

Professional Association

of Bookkeepers

for Bookkeepers

The vision of ICB is to provide Bookkeepers with the co-operative forum to be the best they can be.

We are about bookkeepers: Recognition, Education & Resources

Bookkeepers helping Bookkeepers help Business

August 2011

Level 27 Rialto South Tower 525 Collins Street Melbourne 3000 Tel: 1300 85 61 81 Fax: 1300 85 73 93

[email protected]

www.icb.org.au

Not to be duplicated or re-distributed in part or in full without written permission from ICB

Not all bookkeepers are BAS Agents!

Not all BAS agents do Bookkeeping!

Now that we have a new system, what does it mean?

1) You must be registered to provide a BAS Service

2) Registered BAS Agents must comply with law and the Code of Professional Conduct

All rights reserved, Copyright Institute of Certified Bookkeepers Ltd 2011 The Institute of Certified Bookkeepers Ltd is a member based company limited by Guarantee Page 3


The Essentials

Bookkeepers are recognised for their great contribution 4

The Timetable 5

What it means to be a BAS Agent 6

Myths about the new system 7

Who should register? 8

It‘s law, now what? 9

What is a BAS Service? 9-10

What is a BAS Agent allowed to do? 11

A BAS Agents approach to clients—what SHOULD your obligations be? 12

ICB Guide to becoming a BAS Agent 13– 16

Education Requirements—ICB Guidance 17

What qualifications must I have in the future? 18

Future Education Requirements—TPB Information 19

Certificate IV 20-21

Professional Indemnity Insurance (PII) 22

What do I do now? 23

Decision and Action Trees 24

Requirements of being a BAS Agent 25

Do I need to be a Registered BAS Agent 26-27

How to qualify as a BAS Agent 28-29

Career path of a BAS Agent 30

How to bookkeep and not breach the law 31

Things to consider 32

Renewing your BAS Agent Registration

Understanding the TASA 2009 code of conduct 33-34

The TPB‘s BAS Agent renewal process 35

The Explanations 36

Explanation of the TPB renewal process 37-38

Relevant Experience—ICB Guidance 39-40

Relevant Experience—TPB Information 41

Statement of Relevant Experience (SORE) - ICB Example 42-45

Information for BAS Agents

Proving you are who you say you are to the ATO 46

The ATO proving who they say they are 47

What GST codes to use where 48

Authority to act on your clients behalf 49

Authority to lodge a BAS on your clients behalf 50

Appendix—Tax Agent Services Act 2009 (TASA 2009), the history 51-55

In the BAS Agent Definitive Guide Volume 3 you will find:

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ABN: 20 115 901 945

Bookkeepers are recognised for their great contribution

Bookkeepers are the key to many businesses meeting their BAS obligations and coping with their GST

obligations.

In today‘s world, contract bookkeeper who provide BAS Services must be BAS Agents.

It is estimated that 500,000 small businesses use contract bookkeepers in some form to assist with their record processing, their payroll, their keeping of the books, the review and preparation of the BAS and

their preparation of information for accountants year end and income tax requirements.

Since its inception in Australia, ICB have created the recognition that there are different levels of bookkeepers providing different levels of services, but more importantly ICB have provided the mechanism to ensure that good professional bookkeepers are creditable, that they are resourced & competent, that they are identified at their level of expertise. Finally there is recognition in law of part of the bookkeeper community with the creation of the ―Registered BAS Agent‖.

The law came into effect as of March 1, 2010 and is due for review in 2012. The intention of the law was always to provide protection to the consumer i.e. create a legal framework that protects taxpayers in respect to the professionals (Tax Agents & now also BAS Agents) that they may use to assist them in meeting their obligations. The law as tabled has as its object:

1) replacing the state tax boards (that register the current Tax Agents) with a National Tax Practitioners Board

2) introduces a code of professional conduct for agents

3) provides discipline sanctions upon agents. Through these mechanisms, it is still hoped that this law will move to positively develop the environment of professional assistance to business.

There are many professional bookkeepers who seek to be the best practitioners in assisting business in the many tasks required of them. Where a bookkeeper is being relied on to provide interpretation and advice to the client, provide certainty to the client about the BAS forms they are lodging or talking to the tax office on behalf of the client then they will need to register under the law. The tasks of processing transactions, data-entry, payroll processing don‘t require the higher level of expertise and will not require the bookkeeper to be a registered BAS Agent. Many BAS Agents will provide a complete bookkeeping service from data-entry through to confirmation that their BAS reporting is correct and lodge that form with the tax office. The legislation isn‘t all without concern: The law fortunately requires formal bookkeeper practices, which in itself is fine. The fear remains

that the bookkeeper industry while developing and improving in its professionalism and credibility is made up by many part-time bookkeepers who work by themselves for a handful of clients and that they will not embrace the potentially positive changes and will further withdraw from any recognition or attempt to keep up-to-date. The increased regulation may be perceived as just too great to be worth it.

Also, the new tax practitioners board has an immense amount of work to do in preparation for this new world for tax agents let alone them achieving an understanding of the bookkeepers world and creating the right environment for registration and regulation of the BAS Agent.

The additional costs to a bookkeeper in being a BAS Agent amount to approximately $3000 per year; while some already incur part of this cost in what they are currently doing, many will need to increase their charges to business.



The Timetable

What has been brought in

20/1/2010 First Consultative Forum

1/3/2010 Must be registered to provide BAS Services.

5/5/2010 ICB registered among the first as a Recognised BAS Agent Association

31/8/2010 End of Notify period

30/9/2010 Last date for completion of an acceptable ―Activity Statement Unit‖ by total RPL

1/7/2011 PII must be held by Agents

1/8/2011 TPB start early renewal program for notifiers

29/1/2012 BAS Agents who first registered by ―Notifying‖ must have renewed

29/2/2012 Last date for registration with pre 30/9/10 RPL Activity Statement Unit or post 30/9/10

Assessed Activity Statement Unit only

1/3/2012 Start date that ―Approved Course‖ requires both ―Activity Statement‖ & ―Payroll‖ units

11/2012 Current Board members term of appointment expires

28/2/2013 All new applications or renewals after this date require full qualification (no more transition)

Full qualification means:

Cert IV Bookkeeping or Accounting

Approved Course in GST / BAS (differing requirements)

1400 hours Relevant Experience in the last 3 years

2015 2nd renewals for BAS Agents where all qualifications must be in place

Cert IV Bookkeeping or Accounting

Approved Course in GST / BAS (MUST be both Activity Statement & Payroll units)

1400 hours Relevant Experience in the last 3 years

Continuing Professional Education requirements (draft papers released for consultation until 19 Sept 2011)

Policy & Philosophy papers released by the TPB (and their status for BAS Agents)

www.tpb.gov.au>board

Fit & Proper person (Released final Explanatory Paper of TPB Policy)

Code of Professional Conduct (Released final Explanatory Paper of TPB Policy)

Course in Basic GST/BAS taxation principles (Closed Exposure Draft)

Written Reports Incorporating tax agent services (Closed Exposure Draft)

Software Developers (Closed Exposure Draft)

Letters of Engagement (Released final Information Sheet of TPB Policy)

Claiming a lien over client property (Released final Information Sheet of TPB Policy)

Professional Indemnity Insurance Requirements (Released final Explanatory Paper of TPB Policy)

GST/BAS Assessment (Released final Information Sheet of TPB Policy)

Course approval process (Closed Exposure Draft)

Trusts and registration (Released final Information Sheet of TPB Policy)

BAS agent educational qualification requirements (Released final Information Sheet of TPB Policy)

Educational Qualification requirements –mix and match (Released final Information Sheet of TPB Policy)

Approval process for courses (Released final Information Sheet of TPB Policy)

BAS Service information sheet

Investigations information sheet

Civil Penalties information sheet

Termination of registration information sheet

Reviewable decisions information sheet

Supervisory arrangements and supervision and control

Board procedures following termination/death of an agent

Recognised Prior Learning (RPL) policy

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ABN: 20 115 901 945

What it means to be a BAS Agent (A client Information Statement)

The term ―BAS Agent‖ typically applies to a business who contracts to a client to provide

services to that client to do with their BAS obligations.

The new legislation was implemented with a view to providing business with protection and

security. It is about the qualifications, experience, competence, professionalism of us as an

external person being relied on to assist you with the obligations of GST, PAYG Withholding

(payroll), PAYG Instalment Payments, FBT Payments, WET, Fuel tax & LCT.

My registration as a BAS Agent can be checked at www.tpb.gov.au.

Only registered BAS Agents (and Tax Agents) are permitted to advise or help you

―ascertain‖ (determine, establish, discover, make certain) your liabilities, obligations or

entitlements of the areas of the BAS. Only registered Agents (other than yourself or your

employees) are permitted to represent you in dealing with the ATO.

By being a BAS Agent I/We must

i. be fit and proper

ii. have minimum formal qualifications (eg Cert IV Bookkeeping)

iii. continue to have sufficient, ongoing, continual relevant experience

iv. have an appropriate level of Professional Indemnity Insurance

v. undergo continuing professional education

vi. maintain professionalism in accordance with at least the statutory code of conduct

Adherence with the code of conduct reinforces the concepts of:

Honesty & Integrity (including when acting for you in relation to your money)

Independence (including always acting in your best interests)

Confidentiality (unless you direct us otherwise, your information is totally confidential)

We provide service competently using knowledge and skills to take ―reasonable care‖ to

ensure that tax law is applied correctly for you

Advising you about your obligations under the relevant tax laws

As a BAS Agent we do not advise you nor liaise with the tax office on Income Tax Matters.

This is the role of a Registered Tax Agent. We will work with your accountant and income tax

advisors when income tax matters impact on the BAS Service parts of your business. Such

things as; reportable Fringe Benefits Tax Amounts or Reportable Superannuation Contribu-

tions on your end of year Payroll Payment Summaries. Such things as; the Tax deductibility

of entertainment or other items, where your ability to claim back GST depends on the tax

agents treatment of those items for your tax return.

As a BAS Agent and as a Professional ICB member we are committed to

providing you with an expert service and expert advice.



MYTHS about the new system

All bookkeepers must become BAS Agents – WRONG – it is very possible to perform bookkeeping work that is not in the domain of only BAS Agents.

All bookkeepers must work for Accountants – WRONG – many bookkeepers work as independent businesses providing bookkeeping services to clients or their accountants and this continues under the new system.

Cert IV Bookkeeping is a dead end course – WRONG – in exactly the same way that Cert IV Accounting provides credits towards diploma or further study in accounting, the Cert IV Bookkeeping course provides credits towards the same courses. A number of RTO‘s have stated they prefer that their accounting students have actually started with the Cert IV Bookkeeping course as it provides a better grounding.

BAS Agents must belong to an Association – WRONG – neither tax agents nor BAS Agents have to belong to an association.

I quote one particular training organisation ―only our Cert IV Bookkeeping course will be acceptable under the new system‖ – WRONG – there is no way that this could be the case as the legislation does not state this and the TPB has stated to the contrary.

BAS Agents become liable for late lodgement penalties or penalties for misstatement – WRONG – the new system provides safe harbour possibilities for the clients from these penalties in certain circumstances but does not pass them on to the Agent. The Agent would be subject to any disciplinary requirements that the Board may impose on them.

Accountants automatically get registration as a BAS Agent under the new system – WRONG – they are likely to need to have 1400 hours relevant experience in BAS Service work .

Members of Accounting Associations are automatically granted BAS Agent status – WRONG – they must have the relevant education and relevant 1400 hours of experience.

I have a degree therefore I qualify as a BAS Agent – WRONG – the qualification will need to be deemed ―current‖ (similar concept to RPL accreditation in the education world) as well as you will need to meet the relevant experience requirements and the ‗approved course‘.

I can register as a BAS Agent with my association now – WRONG – registration of BAS Agents will be with the TPB

The Certificate IV units with a ―P‖ in the course code will not be accepted by the Tax Practitioners Board.— WRONG - The Certificate IV units with a ―P‖ in the course code will be accepted by the Tax Practitioners Board, so long as the applicant can provide evidence that they understand that TASA 2009 and Code of Professional Conduct. We believe that this can be done via CPE or an assessment in the future.

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ABN: 20 115 901 945

Who should register?

The question: We are a little confused about the whole BAS registration and PI Insurance situation It seems the TPB is also confused about what’s required. I have been registered as a BAS Agent with the TPB, and at the same time understood that I had to register all the entities that I worked for as a BAS Agent. At the time I was using the ATO tax portal under the partnership name, which we later turned into a company. We then reviewed our situation and started doing bookkeeping under another company name. I have spoken to the ATO and sorted out my BAS lodgements though the ATO Portal Can we get clarification of whether it’s me as an individual, or me as a company director, or me as working for a company, that needs to be a registered BAS Agent?

The confusion further continues when I go to apply for PI Insurance.

Is it me as a registered BAS Agent that needs PI, or is it the company that needs PI, or is it both?

Further – what sort of cover is required? I can’t find that out anywhere – all I know is that I need PI Insurance (I think)! The ICB answer: The entity that provides the bas agent services must be registered. In your case that would appear to be the company you are now using to provide the bookkeeping service. As of (before) 28 January 2012 that company will need to renew its registration (I am making an assumption here that you registered under the notify provisions). For that renewal under the normal act the company must have a satisfactory number of individuals to provide supervision. So, you personally must register as well. I am not sure about your comment ―all entities that I work for as a BAS Agent as well‖. If that means each of your clients, then no. If that means you bill for BAS services through a variety of entities to, I am thinking that you only bill through one entity therefore you and that entity need to be registered. It is not necessary for the directors to be registered agents. For PI each billing entity needs to have a PI policy, if you are a registered agent. But an employee of that billing entity then ensure the billing entities policy also covers remotes and contractors and then you are coved by that entities PII. So, one policy that covers your work as an individual under that entities policy is acceptable. If you personally do BAS service work as a BAS Agent yourself and bill from you personally to clients (ie excluding the company entity) then you personally would require a PII policy that co-vers your personal work.

Have a look at our insurance details web page (www.icb.org.au/Insurance_Details) for

description of what you need.



It‘s law: now what? Only registered ―BAS Agents‖ may provide ―BAS Services‖ for a fee or reward. ―for a fee‖ means the law does not apply to employees of the business whose BAS is being considered or the business owners themselves. This law only applies to contract bookkeepers etc. Therefore people or entities providing service to clients that fall within the definition of a BAS Service must have registered BAS Agents working with them. An Individual must either be, or be supervised by, a registered BAS Agent (or tax agent). Entities must have a sufficient number of BAS Agents involved in its supervision, systems and review. Employees of an entity who provide BAS Services to clients where that entity/business is providing the BAS Services to the client must either be BAS Agents themselves or supervised by BAS Agents.

WHAT is a BAS Service?

Sn. 90-10 Meaning of BAS service (1) A BAS service is a *tax agent service: (a) that relates to:

(i) ascertaining the liabilities, obligations or entitlements of an entity that arise, or could arise, under a *BAS provision; or

(ii) advising an entity about the liabilities, obligations or entitlements of the entity or another entity that arise, or could arise, under a BAS provision; or

(iii) representing an entity in their dealings with the Commissioner in relation to a BAS provision; and

(b) that is provided in circumstances where the entity can reasonably be expected to rely on the service for either or both of the following purposes:

(i) to satisfy liabilities or obligations that arise, or could arise, under a BAS provision; (ii) to claim entitlements that arise, or could arise, under a BAS provision..

(2) A service specified in the regulations for the purposes of this subsection is not a BAS service.

BAS Provisions can be understood to be completion of the payable amount boxes on the BAS.

GST amount collected or paid FBT Instalment amount or credit claim

WET payable or refundable amounts Luxury Car Tax amounts

Fuel Tax Credit amounts PAYG Withholding amount payable

PAYG Instalments amount payable Classroom or onsite training

general training on the use of software is NOT a BAS Service

general training around how GST works or is reported in the software is NOT a BAS service

training that relates to exactly how GST works for a specific business – IS a BAS service

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ABN: 20 115 901 945

What is a BAS Service? Continued

Install and configure software

general software / bookkeeping / accounting configuration – No

specifically determining what GST codes apply when – Yes

advising on legal compliance of the business tax invoice – Yes

configuring how a BAS like report is to be produced – Yes

implementing a default GST code list provided by a registered Agent to the business – No

If the client is relying on this install and configuration service to help that client ascertain their future GST/BAS obligations then it is a BAS Service. Bookkeeping

following instructions – No

transfer data onto a computer program - No

enter data – No

code transactions (based on instructions) – No

process payments – No

prepare bank reconciliations - No Advanced Bookkeeping

If the client is relying on another registered BAS/Tax agent – No otherwise

preparing an approved form – Yes

lodging an approved form – Yes

giving advice about a BAS provision – Yes

―transacting‖ with the ATO on behalf of a client – Yes

Anything and everything where work is reviewed by another registered BAS agent – No

Reconciling facets of the accounting records for a period – No

Providing generic reports – No

Preparing a report that is used to prepare the BAS – Yes



What is a BAS Agent allowed to do?

A BAS Agent is issued a licence that says they can: Advise a client, provide certainty to a client or represent that client to the tax office in relation to:

All GST matters

Wine Tax, Fuel Tax, Luxury Car Tax matters

Payment of FBT

All aspects of Payroll that relate to the withholding of tax amounts and the reporting of that amount to the employee and the Tax office

All aspects of other PAYG Withholding amounts: ie no ABN, Interest & Dividend

All aspects of the payment of income tax via PAYG Instalments A Tax Agent can also do these and then other areas of tax also. What does this mean? A registered Agent may:

Design and set up compliance systems

Advise the client on how the above areas of law affect them

Review a client‘s operations in relation to these areas of law and provide certainty to that client that they are getting it right.

These tasks cannot be done by a bookkeeper who is not a registered Agent. So, what can a Bookkeeper do who is not a BAS Agent?

They can follow systems designed by others

They can process

They can reconcile and produce results but not if the client is relying on those, without further action to be certain that they are meeting their obligations

They should raise questions and not answer them A BAS Agent can be a business with one or more qualified persons (registered BAS Agent/s) and others working, performing BAS Services, being supervised and controlled by the qualified person. This is legal!

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ABN: 20 115 901 945

A BAS Agents approach to clients What should your obligations be? As bookkeepers attempt to grapple with what it might mean to be a registered BAS Agent (as well as being a professional competent bookkeeper) various conversation topics are raised:

"but we have to sight all the TAX invoices otherwise we can’t prepare the BAS” "I have to check past periods BAS to ensure nothing has changed ” "a client does not know the range of responsibilities of what is required to be done by the bookkeeper ”

So what are the obligations upon a professional in dealing with a client?

Especially when there becomes a legal obligation upon that professional! Especially when another professional (in our case an accountant) may end up reviewing or seeing our work!

ANSWER

It is an absolute obligation on the professional to have a comprehensive discussion with the new or existing client about what the professional is being engaged to consult on, or what work they are being engaged to perform. Document that understanding in an engagement letter.

Likewise it is important for that professional to ensure the client also understands what the professional is not being engaged to do.

A future BAS Agent may hold a full BAS Agent registration and therefore in theory is able to be relied upon by the client for the entire range of BAS services: ascertaining, advising, liaising and representing the taxpayer in relation to all BAS Provisions.

However if the client is not willing to or possibly not able to pay the BAS Agent for all services IT REMAINS correct and likely that you can and should be engaged for a limited scope of services. ie you can‘t do everything if the client can‘t pay you to do so.

What is important is to ensure that you have documented and understood between yourself and the client at the start and again from time to time what your range of services are and are not.

If you have not been asked to sight all tax invoices nor to check that they have them - then don‘t spend the time to do so. You may not be paid for it. What is important is to ensure that the client knows they have an obligation to have the tax invoices in their possession that they must be of the right form and inform them that you have not checked.

A registered BAS Agent that is doing any work for a client must ensure that they have stated the work they have done. To be absolutely clear you could then state the potentially enormous list of all the things you haven‘t done, (however it probably isn‘t appropriate marketing).

PRACTICAL IMPLEMENTATION

A professional will let a client know everything that the client should be doing in order to comply and to have effective books and records. (in writing)

A professional will agree with a client what services the professional is being engaged to perform (in writing)

A professional will not process something to an incorrect account but may place items in suspense accounts if they need further information of work done before the correct posting can occur.

A professional will document and inform the client, and potentially, the accountant of that client, in writing of decisions made in processing that should be highlighted and potentially warrant review. SUMMARY

It is your responsibility to agree with the client what you are being paid to do.

It is your responsibility to notify the client of their legal obligations.

It is NOT your responsibility to adopt all the clients‘ legal obligations as your own.

It is your responsibility to comply with the law therefore you must not process or prepare forms that you

know is in contravention of the law.



ICB Guide to becoming a BAS Agent

BAS AGENT INFORMATION

DATES TO REMEMBER – your action checklist

BEING COMPLIANT WITH THE LAW

CERTIFICATE IV (How to complete and how to fast track), APPROVED COURSE IN BAS/GST,

1400 RELEVANT EXPERIENCE HOURS, FIT AND PROPER PERSON

BAS AGENT BENEFITS – PORTAL ACCESS, LODGMENT EXTENSION,

PRIORITY PHONE NO

PROFESSIONAL INDEMNITY INSURANCE

SAFE HARBOUR

REGISTRATION ISSUES – includes an explicit guide to the form, notifying twice, what will happen

after

DATES TO REMEMBER

Action Checklist

Embrace the system – NOW!

TASA2009 Registration

You may not provide BAS Services until your application has been approved.

An agent who is renewing remains registered unless told otherwise

Qualifications

Fit and proper

Academic Qualifications (Cert IV & Approved BAS/GST Course)

Relevant Experience (1000 hours RBAA Member or 1400 Hours if not)

TASA2009 Registration is:

Online at www.tpb.gov.au

$100 for ―in business‖ bookkeepers (otherwise $50) 2 year registration

3 Years

same status as for other registration types

Not valid until the Board has notified you of a successful application

By 29 February 2012 – Review the Boards requirements in relation to the approved course in basic GST/BAS principles. Renewals and new registrations may need to upgrade their accreditation in this area. 29 February 2012 – All bookkeepers who have notified for transitional registration prior to 31 August 2010 will be required to renew their registration. Either as a Transitional Registration or TASA2009 Registration. 28 February 2013 – All Transition / all registrations end

28 February 2013 – in order to renew or register for the 1st time, FULL TASA2009 Registration requirements must be met (Cert IV and approved GST/BAS Course and Relevant Experience)

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ABN: 20 115 901 945

WHO HAS TO BE REGISTERED?

TASA2009 will require all entities (including sole trader individuals) who provide BAS Services to a client, that are relied on, to be registered. Entities (Company, partnerships & trusts) will be required, under TASA2009, to have a sufficient number of registered individuals (owners, directors, employees or contractors). What is a sufficient number? How many qualified people do you require to ensure that reasonable care is taken and reasonable steps performed to ensure competent provision of BAS Services by your entity.

BEING COMPLIANT WITH THE LEGISLATION To be a BAS Agent, you must meet certain criteria. The TASA 2009 outlines five key criteria that must be

met before an individual is granted BAS Agent registration status;

Certificate IV in Bookkeeping or Accounting OR Higher (Degree, diploma etc)

Completion of an Approved Course in BAS/GST

1400 Relevant hours of Experience over a three year period

Fit and Proper person

Professional Indemnity Insurance

CERTIFICATE IV IN BOOKKEEPING The regulations have stipulated that the Certificate IV in Bookkeeping or Accounting is the minimum qualification that bookkeepers must hold in order to be eligible to be a BAS Agent. This does mean that similar qualifications may be accepted. Accounting degrees, advanced diplomas and diplomas are all relevant to this criterion. Furthermore, the age of the qualification is mostly irrelevant (so long as there is evidence of current work experience); there is no reason why an Accounting degree from 1985 will not be accepted should you meet the other criteria. However, this does not mean that you can assume that a Commerce degree from 1990 is relevant. Remember, the qualification must be relevant to the position – BAS Agents focus on bookkeeping and accounting principles. If you have not yet attained any qualifications, it is the time to start looking into it.

The Certificate IV in Bookkeeping is offered by numerous Recognised Training Organisations around

Australia. The Certificate IV in Bookkeeping is made up of the following units:

Keep in mind that a number of these units are electives, so depending on where you study you may study

a slightly different curriculum.

Deliver and monitor a service to customers Implement customer service standards

Prepare financial reports Work within a franchise

Manage relationship with franchisor Design and produce business documents

Develop and use complex spreadsheets Contribute to OHS hazard identification and risk

assessment

Monitor and manage small business operations Manage personal work priorities and professional

development

Write simple documents Administer subsidiary accounts and ledgers

Perform financial calculations Prepare financial statements for non-reporting entities

Maintain inventory records Set up and operate a computerised accounting system

Develop and implement policies and procedures

relevant to bookkeeping activities

Establish and maintain a cash accounting system

Establish and maintain an accrual accounting system Carry out business activity and instalment activity statement

tasks

Establish and maintain a payroll system Apply principles of professional practice to work in the

financial services industry



APPROVED COURSE IN BAS/GST On 22 April 2010, the TPB released a document detailing the ‗Approved Course in BAS/GST‘. This outlined that ―until 29 February 2012, the Board will accept that the BAS unit ‗FNSBKPG404A Carry out Business Activity Statements and Instalment Activity Statements‘ in the Certificate IV Financial Services (Bookkeeping) and Certificate IV Financial Services (Accounting) courses is an approved course for the purposes of a course in basic GST/BAS taxation principles‖. This means that everyone who completes the Certificate IV in Financial Services (Bookkeeping) will have also completed an Approved course in BAS/GST. Please note that for those wishing to complete the Certificate IV in Financial Services (Accounting) will need to include the unit ‗Carry out Business activity and Instalment activity statement tasks‘ to the curriculum as it is an elective. For the new complete requirements refer to page 17 of this guide 1400 HOURS RELEVANT EXPERIENCE (over a three year period). You will be able to gain credible hours if you are working under the direction of a registered BAS or Tax Agent or if you are working for an employer. How to prove these hours? Refer to pages 39-40 of this guide FIT AND PROPER PERSON This is the criterion that ensures you are of good character and have no criminal/tax offence history. The board released an information sheet outlining all of the key aspects of a ‗fit and proper‘ person:

Whether the individual is a person of good fame, integrity and character; and

Whether any of the following events have occurred during the previous 5 years:

the individual has been convicted of a serious taxation offence;

the individual has been convicted of an offence involving fraud or dishonesty;

the individual has been penalised for being a promoter of a tax exploitation

Scheme;

the individual has been penalised for implementing a scheme that has been

Promoted on the basis of conformity with a product ruling in a way that is

Materially different from that described in the product ruling;

the individual has had the status of an undischarged bankrupt; and/or

the individual has served or been sentenced to a term of imprisonment in

whole or in part.

If you can answer ‗no‘ to all of these terms then you are compliant with this requirement

of BAS Agent‘s.

Please note that your application may not be accepted if you have any BAS or Tax returns outstanding – whether it be your company or your own.

PROFESSIONAL INDEMNITY INSURANCE

Professional Indemnity Insurance is required by all BAS Agents as of 1 July 2011. This requirement was

released by the TPB on 25 February 2010.

Refer to page 22 in this guide

If you do not yet have Professional Indemnity Insurance in place and are interested in obtaining it, contact

Insurance Made Easy on (03) 9757 8181.

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ABN: 20 115 901 945

SAFE HARBOUR

Safe Harbour is a provision of the legislation and more specifically the Code of Conduct that protects the client from penalties. The Safe Harbour provision is administered by the ATO (Commissioner of Taxation) rather than the Tax Practitioners Board. The Safe Harbour provision will apply to:

false of misleading statement penalties under subsection 284-75(1) of the Taxation

Administration Act 1953 (TAA) and;

failure to lodge on time penalties under subsection 286-75(1) of Schedule 1 to the TAA.

In summary, if a registered BAS or Tax Agent submits a lodgement late or gives misleading information in the form of a BAS, and it is not the fault of the client (as they had submitted their ‗books‘ to the BAS Agent and relied on them to lodge the statement(s)) and the BAS Agent did not a) show intentional disregard of a taxation law; or b) show recklessness as to the operation of a taxation law – then the client will not be penalised. For example, keystroke errors will not be penalised.

BAS AGENT BENEFITS

As a BAS Agent you will receive your own BAS Agent number – for those who need to complete two reg-istrations/notifications you will receive two BAN‘s. This will enable you to register for access to the ATO Portal, ECI and AUSKey. Furthermore, BAS Agents will also receive a 4 week electronic BAS lodgement extension, as well as cementing a professional status within the Australian Taxation system.

LODGEMENT EXTENSIONS

You have probably heard by now that registered BAS Agents do receive a 2 week extension for the lodgement of each quarters BAS if it is lodged electronically and through your Portal or ECI.

So for each quarterly BAS, a registered BAS Agent who‘s client has been added to their BAS Agent portal will now have 8 weeks for March, June and September BAS‘s. NOTE The Portal and the printed form and every where else will state that the BAS is due on the 28th of the month following the quarter or electronically it may state the 2 week extension BUT

NOTE nothing will ever state the extended date which includes all four weeks.

However once the BAS is lodged electronically then the date will be updated on the system to allow the 4 week extension. HOWEVER When you receive the paper form or look on the portal, or for that matter ring the ATO and ask about what is the due date? The date you will be told is the NORMAL 28th of the month (ie: 4 weeks).

The stated required date will always show as the 4 weeks as this is the legally required lodge-ment date. When you have lodged the BAS electronically for your client the lodgement required date will update once it is "received" by the ATO to the extended date per the lodgement pro-gram. Not the best logically from our point of view but it is the system.



Education Requirements—ICB Guidance

Future Education requirements of all BAS Agents Did you get your ―Activity Statement‖ unit by RPL after 1 October 2010? Then you probably have more work to do! If you didn‘t do the ―Payroll‖ Unit or you did it by RPL then you may have more work to do! Context The TPB has informed us of recent communication to all RTO‘s delivering the Cert IV. A copy of their communication to us and also the letter to RTO‘s are attached. Part of this information appears to be the TPB‘s final position and some of it is definitely infor-mation that is being released for further consultation. Summary (An ICB explanation of what the TPB is now saying and what it means) 1. The education sector course description for Cert IV Bookkeeping and Cert IV Accounting has

been changed 2. BAS Agents may have registered or may still register without the formal qualifications that will

ultimately be required (up until 28 Feb 2013) For each new BAS Agent after 1 March 2013 and for each existing BAS Agent that needs to renew as from that date must:

Have a Cert IV Bookkeeping or Cert IV Accounting or higher, and

Have completed the ―approved course‖ as specified by the Board which is the subjects

FNSBKG404A Carry out business activity & instalment activity statement tasks (the ―Activity Statement‖ unit)

FNSBKG405A Establish and maintain a payroll system (Note that a BAS Agent with a higher qualification (ie a degree) must also now qualify with this ―approved course‖)

Any achievement by RPL after 1 October 2010 of the ―approved course‖ subjects must include formal assessment

My registration expires on 28 Feb 2012…not 2013 In #2 above, it talks about you requiring the formal qualifications after February 2013. For those that need to renew by the end of February 2012 you can apply using a ―standard application‖ ie you are fully qualified per #3 above. Otherwise there is the option of applying under the remaining Transitional Registration; proving you have been providing BAS Services to a ―Competent Stand-ard‖ for a ―reasonable period‖. Competent Standard: certificate or reference from your employer or from tax agents of the cli-ents for whom the work is done. Reasonable Period: 700 hours in the last two years. Using this ―Transitional Registration‖ the TPB can grant you another year in which you need to

obtain the formal qualifications.

If you are qualified then we suggest NOT using this ―Transitional‖ year.

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ABN: 20 115 901 945

What qualifications must I have in the future?

These are the requirements when you apply to register for the first time, or to renew your registration. Requirement 1: Must have Cert IV Bookkeeping or Cert IV Accounting or higher Issued by an RTO, this requirement is the same as before. Requirement 2: ―Activity Statement‖ and ―Payroll‖ units possibly from within the Cert IV, but with enhanced conditions described below: This is best clarified by answering: Did you complete your ―Activity Statement‖ unit and/or your ―payroll‖ unit via RPL? If NO then you have no further qualification requirement. If YES then answer the following: When did you complete your ―Activity Statement‖ Unit and your ―Payroll‖ Unit?

1. Before 1 October 2010: Then you do not need to do any further qualifications, unless your first application to be a BA is after 29 February 2012 (see note 2)

2. After 1 October 2010: If your ―Activity Statement‖ or ―Payroll‖ unit was achieved through RPL the RPL must include ―formal assessment‖

3. ―Activity Statement‖ unit before 1 October and the ―Payroll‖ unit after 1 October Then nothing further for the ―Activity Statement‖ unit (see note 2) If the ―Payroll‖ unit is through RPL then ―formal Assessment‖ is required,

4. ―Payroll‖ unit before 1 October and the ―Activity Statement‖ unit after 1 October Then nothing further for the ―payroll‖ unit (see note 2)If the ―Activity Statement‖ unit is through RPL then ―formal Assessment‖ is required

Notes 1. the ―Payroll‖ Unit has been added as a new requirement for all but it is not ―required‖

until applications or renewals lodged after 29 February 2012. 2. Any new applications (not renewals) after 29 February 2012 that have achieved the

―Activity Statement‖ unit and/or the ―Payroll‖ unit through RPL must have achieved both with formal assessment.

Formal Assessment may include one or more of the following:

tests and examinations (oral and written);

problem based assignment;

essays and reports; and

computer based assessment tasks.

The Proof: where RPL has been formally assessed in some way, a statement of assurance or similar documentation must be provided. Information that is likely to be required in these documents include:

name of course provider and student;

details of qualification/award;

a certification to the Board by an appropriately qualified officer of the course provider;

and the method by which RPL has been formally assessed



Future Education Requirements—From the TPB

Education: What it means for you This applies to:

current BAS agents who will need to renew online when their current registration expires

anyone planning to lodge a new standard application for BAS agent registration, and anyone planning to lodge a new transitional application for BAS agent registration.

After extensive consultation with industry experts, associations, tax academics, BAS agents and training organisations, the TPB has now finalised its education requirements for BAS agent registration. There are 2 education requirements for full standard BAS agent registration. To be eligible you need to meet both requirements (1+2), they are:

1. to have been awarded at least a Certificate IV in Financial Services (Bookkeeping) or (Accounting), and;

2. to have successfully completed a course in GST/BAS taxation principles that is Board approved.

Please note that there are other eligibility criteria, such as ‗relevant experience‘ and ‗fit and proper person requirements‘ that also need to be met as part of the standard application for BAS agent registration. You should start considering the different options available for meeting educa-tion requirements, so that you meet all eligibility requirements and are ready to renew online when your current registration expires

http://www.tpb.gov.au/TPB/legislation/Terms_explained/TPB/Legislation/Terms_explained.aspx



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ABN: 20 115 901 945

Financial Services Certificate IV There are two of them mentioned in the TASA2009

Which one should I do?

Certificate IV (Bookkeeping) has been around for a couple of years and has been specifically created

for the Bookkeeper / BAS Agent.. We believe this course is better suited for bookkeepers.

Certificate IV (Accounting) has been around for a lot longer and sits in the stream of education relating to Accounting. If you are wishing to further advance your education through diploma/degree levels etc. in this field then the Accounting qualification is currently immediately more suited as it directly feeds into the further accounting course of study. However the Accounting certificate contains some units that are less

relevant to the field of bookkeepers.

Certificate IV - By when?

You will need to obtain Certificate IV Bookkeeping or Accounting or better in order to renew your registration. All BAS Agents require Certificate IV or greater for renewal after 29 February 2012

For new bookkeepers, following the start date (March 1, 2010) of the new law, you will require the

Certificate IV in order to obtain your first registration.

Certificate IV - How?

Registered Training Organisations (RTO) are designated in the TASA2009 as the appropriate issuers of

the qualification. The RTO provision is consistent with the entire Australian Education Framework.

RTO‘s provide their courses in a number of different ways:

Classroom (varying styles over varying times over varying periods)

Distance (at home – or wherever you like, they send material and you work through it and then various assessment techniques)

Assessment (different techniques of assessing that you have the skill or identifying gaps for fur-ther education)

Recognition of Prior Learning (RPL) or recognition of prior competence (a variation on Assess-ments, it requires you to put together proof that you already have the skills required within each

of the subjects)



We are being asked the question ―How should I do the course?‖

The answer depends on your personal thoughts and objectives that you wish to achieve out of the

process!

1) If your aim is to learn everything from the base up: then ―Classroom‖ or ―Distance‖ would be the way to walk through the material in the course and have the RTO check that you learnt it. If you wish to do it at your own pace as time (and motivation!) permits then ―Distance‖ If you wish the discipline of having classes to attend and more rigorous deadlines to meet then ―Classroom‖

2) If your aim is to check your own knowledge and ensure for yourself that you do know what you think you know: then ―Assessment‖ or an Assessment based RPL would test you, find any gaps, provide

an education pathway to learn the gaps before reassessment

3) If your aim is to simply qualify because you do know: then ―Assessment‖ is the way to prove it and

be awarded the certificate

4) If you would like to get through the material quickly and be assessed then consider the Intensive workshop approach (ICB will be working with RTO‘s to bring intensive workshops to any location where we establish a sufficient number of candidates, you will find further details at on the ICB website

Certificate IV - Who? For a complete list of providers of the Certificate IV Bookkeeping and information on their respective courses refer to the ICB Guide to providers of the Certificate IV Bookkeeping which can be accessed on

the ICB‘s Education and Training page.

ICB have found a number of RTO‘s prepared to engage with experienced bookkeepers in a creditable and understanding manner. While this number is increasing, unfortunately, many do not appear to be

interested in embracing the experienced bookkeeper.

For a list of questions to ask potential providers of your Certificate IV, ICB has developed a set of questions to ensure you obtain most of the information you require, a copy can be found on the ICB

website on the Certificate IV page.

A number of progressive RTO‘s have joined with ICB in a program of positive promotion of the Certificate IV Bookkeeping (and other bookkeeping training), you will find their details at www.icb.org.au/Education_and_Training

Certificate IV - What about me? - I have an old Certificate IV or old degree?

It appears to be policy within the education sector that a qualification that is more than 5 years old is not considered relevant.

This is slightly clarified with concepts that, if evidence of continuing education or continuing practice of the skills is available then, the old qualification would be taken into account as part of the consideration of

your current competence.

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ABN: 20 115 901 945

Professional Indemnity Insurance (PII)

Do you need PII? The TPB notice appears to deal with so many legal intricacies that it is hard to work out whether you are in or not.

Let us keep it simple: If you personally, or you are in a business where you, provide BAS Services to external clients then

you MUST be covered by a PII policy and you will need to tell the TPB. If you are a BAS Agent but you only provide BAS Services to your employer then you are not re-

quired to have PII so just tell the TPB. If you are a BAS Agent but provide BAS Services through someone else's business then either you

must be covered by your own policy or specifically covered by that other persons policy. You still need to tell the Board.

You do not need two policies. Some have been worried that they need a policy for themselves and another policy for their company because both are registered - this is not necessarily the case. If the one business policy covers both then one policy is fine.

"Covered by a PII policy" means that; if it is just you then the policy would be in your name, if it is for a business then it may be in the business name but must include coverage of at least all registered Agents providing services.

When do you need it? If you have an existing policy that covers you, then that policy is fine until its renewal. However, you must have PII and it must comply with the TPB requirements from its renewal date.

Does your PII comply with the Boards requirements? Your cover must be "adequate" see the TPB paper for what this is about but now that we have that said. There are minimums set.

The TPB notice, talks about "Turnover from BAS Services" (presumably distinguishing it from other revenue but we suggest you just get cover for all your turnover).

Turnover up to $75k (ex GST) then minimum cover is $250k including legal costs Turnover $75k to $500k (ex GST) then minimum cover is $500k including legal costs Turnover over $500k (ex GST) then $1m....

The Excess: The level of excess cannot exceed the greater of $1000 or 4% of turnover Does your policy comply?

The ICB Preferred broker policy through IME certainly complies. In other cases you will need to refer to the above, the TPB papers and probably speak to your broker about their opinion. What do you have to tell the Administrative Appeals Tribunal?

Nothing! The Tribunal would be contacted if you wanted to launch an appeal against the requirement now imposed on you to have PII as a BAS Agent. Given the logic of the requirement and given the exemptions that are allowed we don't understand why you would appeal and we don't see any need for it. More detail Refer to the TPB papers and their website, refer to www.icb.org.au/insurance_details It is a policy that makes sense, the limits make sense, the excess makes sense, the types of business activity make sense. And it complies with the TPB requirements for BAS Agents. You may be at the minimum level or you may require a greater level of cover. $400 might be your total cost. Checkout the differences in any other policy as the excesses and terms are very different especially the cheaper ones. Insurance Made Easy, as the broker behind this Chubb Insurance policy, is what ICB has found as the BEST for you and your business.

A policy that DOES COMPLY with all the requirements of the TPB. A policy that does work for you!

A policy that is about bookkeepers in business for themselves and is priced accordingly.

http://www.icb.org.au/insurance_details



What do I do now? Keep experience records

Various provisions in the law require a record of ―Relevant Experience‖.

Quoted from the Act:

Relevant experience is:

Work in the role of a BAS agent (or tax agent) or

Work under the supervision and control of another registered ―agent‖ or

Work of a type approved by the ―Tax Practitioners Board‖ (―Board‖)

All of which includes substantial involvement in BAS Services

Bookkeepers wishing to apply for registration or renewal will need evidence of 1400 hours of Relevant Experience. Enhancing your record keeping behind the work you are doing for your clients, especially in relation to the BAS, is now essential. Members of ICB (as a recognised BAS Agent Association) only

require 1000 hours in each three years.

What types of experience can I use? Relevant experience is work that you perform for a client or employer that leads up to and relates to the provision of BAS services. However the 'relevant experience' must include substantial involvement in BAS services. This means that the work includes calculation or consideration of a BAS provision. Most work in preparing the books and records of a business for the purposes of that business completing their BAS obligations, including their payroll obligations, would be considered appropriate relevant experience.

How can I build up my 1400 hours?

work for a BAS Agent or Tax Agent doing BAS Services

work under the Direction of a BAS Agent or Tax Agent while providing BAS Services

work for a client in accordance with the ATO guidelines as to using computer accounting systems to assist clients with the GST & BAS bookkeeping and reporting leading to the preparation of the

BAS (ICB opinion that this service should be allowed)

Keep records of your client work

Document your ―Directed by BAS Agent or Tax Agent ‖ relationships

Does this include everything I do for a client?

There is a fair chance that it may include everything you do for a client if a significant part of that work

results in that clients BAS form being prepared.

Where is the line?

I am not sure there will be a precise definite distinction between what is in and what is out as all the types of work you do and how you go about it will be taken into account in

the Tax Practitioners Board making their assessment.

Refer to pages 39-40 of this guide for all the details on

Relevant Experience

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ABN: 20 115 901 945

TAX AGENT SERVICES ACT 2009 BAS Agent

DECISIONS & ACTION TREES

Remember not all bookkeepers need to be BAS Agents and not all bookkeeping means you have to be a BAS Agent. Bookkeeping remains valid & necessary. Bookkeeping continues to be a creditable profession.



Be over 18

Remain a Fit & Proper person

Have Professional Indemnity Insurance

Act with honesty & Integrity

Including:

- personally comply with tax law

- account for money in trust properly

Maintain independence from your client & between clients

Including

- acting lawfully in the best interests of your client

- manage conflicts of interest

Maintain confidentiality of information

Not obstruct the administration of tax law

&

Advise client of their rights & obligations under tax law

Respond to requests and directions from the Board in a timely, responsible & reasonable manner.

Advise changes in your circumstances

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ABN: 20 115 901 945

Do you do

bookkeeping only for

your own employer? YES Employees whose BAS

Service work is only for

their own employers BAS

do not need to be

registered BAS Agents No I do bookkeeping work on the

books of my clients or clients of my

employer.

In your business

is there another person who is a registered BAS Agent?

Is your work supervised by

that registered BAS

Agent? YES

NO

NO YES

If you are not registered

but your work is supervised

by a registered BAS Agent

to ensure competence then

you do not need to be

registered.

If you are not being relied

on by the client, typically

because someone else is

the BAS expert, then you

do not need to be

registered.

If you only provide

data entry

coding transactions based on instructions provided

processing payments

paying the tax bill

record keeping

bank reconciliations

then you do not need to

be registered

Does the client

rely on someone else to help

them comply with their BAS

obligations?

NO

Do you

LIMIT

your work to normal

bookkeeping?

NO

YES

YES



NO

NO

Do you only

provide training in a

classroom or of a

general nature?

Do you prepare

the BAS form or provide

the results that go onto the

form?

Do you

lodge the BAS

form for the

client?

YES General classroom trainers do

not need to be registered BAS

Agents. If the training begins

to be specific to a business

situation then this exception

does not apply

NO

NO

The services you offer the

clients fall under the BAS

Services definition of the Act

and you ARE REQUIRED TO

REGISTER AS A BAS AGENT

Refer to ―www.icb.org.au/

BAS_Agent‖

YES

YES

Do you

advise about GST, tax

on payroll or other

BAS related taxes?

YES

Do you

set up how a software

system default codes

GST or the format of

Tax Invoices?

YES

NO

It is likely you are not required

to register. For any further

questions of clarification

contact us at [email protected]

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ABN: 20 115 901 945

Are you

Over 18 NO

You are not eligible to register

You are not eligible to register

Refer to ―Career pathway to become a BAS Agent‖


YES

Are you ―A fit and

proper person‖ as

defined?

NO

YES

Yes means that at all times within the last 5 years you have been a person of:

- Good fame, integrity & character

- not an undischarged bankrupt

- not been in imprisoned at any time

And you have not been convicted of

- a serious tax offence

- of an offence involving fraud or dishonesty

You have not been penalised for being a promoted of a tax exploitation scheme

(full details in the Act)

Do you already have a formal

qualification of, or above, Certificate IV Financial

Services (Bookkeeping) or (Accounting)?

NO

Did it include an approved unit of

study in GST / BAS principles?

YES

YES

Study the BAS / GST unit 28/2/12, then the BAS & Payroll unit with an approved training organisation

NO

Transitional Registration until 28-2-13

‗Competent Standard & Reasonable Period‘

(refer www.icb.org.au/BAS_Agent)



Do you Have 1400 hours relevant

experience within the last 3 years?

Transitional Registration until 28-2-13

‗Competent Standard & Reasonable Period‘

(refer www.icb.org.au/BAS_Agent)

NO

Yes is Work that is

- as a BAS Agent (not possible) - under supervision and control of a Tax Agent - of a type approved by the Board

Including substantial work in relation to BAS & GST.

YES

You are eligible to register as a BAS Agent.

Apply to the Board

- their form

- with payment

You are considered registered until decision made

Board must process within 6 months

Application

Successful?

NO Contest decision through Admin Appeals

Tribunal? NO YES

First Registration will be for 3 years

Refer to ―Requirements of being a BAS Agent‖


(Continued)

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ABN: 20 115 901 945

Work for a BAS Agent

Obtaining (1400 hours) relevant experience and knowledge

Formal study to obtain:

Certificate IV in Bookkeeping or Accounting

Including unit of study in BAS / GST principles & Payroll

Apply to the Board

You are not considered registered until decision is made

Board must process within 6 months, or application is rejected

Application Successful?

YES

Board may impose conditions on registration or issue a restricted (―Specialist‖) registration

You are subject to the provisions of the law.

NO

Contest decision through Admin Appeals

Tribunal.

Successful?

YES

NO

Work for someone else or choose another career



As an employee of the business the Tax Agent Services Act 2009 does not apply.

Obtain instructions from the client or their advisors

Follow the instructions while processing

Raise questions or issues with your client

Provide information / reports for others to use to determine obligations or entitlements in relation to the BAS

Noting that the law says normal bookkeeping is not considered a BAS Service and therefore you do not need to be a Registered BAS Agent to provide:

- data entry

- processing

- reconciliation

- reporting

Do not be the final say on:

- whether GST applies or not

- the format of Tax Invoices Issued

- the amount to pay on a BAS

Do not advise the clients

- on matters of tax interpretation

- of how much BAS taxes to pay

Do not liaise with the tax office on behalf of the client

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ABN: 20 115 901 945

Be over 18

Remain a Fit & Proper person

Have Professional Indemnity Insurance

Act with honesty & Integrity Including:

- personally comply with tax law

- account for money in trust properly

Maintain independence from your client

&

between clients including

- acting lawfully in the best interests

of your client

- manage conflicts of interest

Maintain confidentiality of information

Not obstruct the administration of tax law

&

Advise client of their rights & obligations

Respond to requests and directions from

the Board in a timely, responsible &

reasonable manner.

Advise changes in your circumstances

Things to consider:

For all updates, news and the history of the evolution of the BAS Agent go to

www.icb.org.au/BAS_Agent

To keep updated, subscribe to the ICB monthly newsletter, email [email protected]

with your request

For all your bookkeeper training needs visit www.icb.org.au/Education_and_Training



Understanding the TASA 2009 code of conduct

Background concept:

This legislation has been brought in on the basis of providing better ―Consumer Protection‖. The

concept is that as a result of a better registration regime over who is able to provide what ―tax‖ services

(including ―BAS‖ services) we will have an environment where the client is being provided with better

advice and better service and there is a consistent obligation on providers of these services. The code

of conduct is part of the legislation and is a key component of delivering the ―consumer protection‖.

Honesty & Integrity:

An agent can‘t help a client avoid tax or make fraudulent claims. An agent must act with integrity, still

act on behalf of the client with providing services to the clients for their best interest but not at the cost

of being dishonest, acting in opposition to the law or in any way that diminishes the integrity of the

agent themselves.

An agent must comply with their own tax obligations in every sense. It has been argued that if an

agent cant comply with their own (and all their related entities) compliance, lodgement and payment

obligations then they are unlikely to be able to keep their clients in line.

An Agent needs to hold their integrity (and therefore their agent status) as a higher value than keeping

a dishonest client happy.

Client money must be held in trust accounts.

Independence:

An agent must act lawfully in the client‘s interests:

This type of independence links in with Honesty and integrity but the concept is that you are not so

close to the client that you are prepared to allow claims to be made (GST credit claimed back) that is

not really allowed. You must ―independently‖ provide the legal and correct advice to the client and

stand ―independent‖ of any bad decisions of the client. You must not knowingly allow that claim to be

made if you know it is wrong.

In practice you prepare the quarterly information for the BAS. There are a number of transactions that

cause you concern and you request further information or even better that you understand to be a

private purchase and hence you don‘t claim back the GST. The client instructs you to claim the GST

anyway: if you know the claim is wrong then ―You must not!‖. Post the transaction to a query account

and finish your reports without claiming the GST and tell the client. If the client alters the report you are

not a party to the incorrect claim and you have stood independent of the client.

Avoid conflicts of interest:

At a minimum you should inform clients if you believe there is a potential or could be a perceived

conflict of interest between you and the client or between 2 or more of your clients.

Between you and the client: if you take equity or profit share in your client then you have a conflict of

interest. This must be well documented and agreed to and noted by the other equity holders etc. You

must act with integrity and honesty in provision of any service to this client (as though you had no

interest). The ultimate best position is to have others review/sign off on anything that you have

provided that may be seen as benefitting or effecting you.

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ABN: 20 115 901 945

Between clients: it is often used as a marketing advantage to claim expertise in an industry, however it may

also be perceived as a conflict of interest. You will need to document and inform clients of situations where

you may work for conceptually their competitors.

Competence:

Are you competent/qualified/experienced/knowledgeable to provide that service to the client?

How to be competent?

Take reasonable care! Ask questions on anything you aren‘t certain about? Seek clarification of

information. Seek expert opinion on areas that you are certain about. This would include issues where you

question some of the information provided to you ie Stock level looks too low.

Raise issues with the client: If you some across a transaction or situation that you believe the client should

be seeking advice or assistance to comply then you are obliged to advise the client. If the client does not

ask you to provide that assistance then you must not be a party to acting without that advice but we don‘t

believe that you must provide advice or assistance when you are not engaged to do so.

Take Reasonable Steps! Review the information provided by the client. Review and raise issues about

that information (areas of concern, areas to research to become certain about), seek expert assistance or

clarification on the issue, advise the client of the issues, advise the client of the research and view.

Undergo Continuing Professional Education

Keep up to date, talk to others, research and be trained – details of exactly what the Board requires are yet

to be issued. There is an obligation to undergo 15 hours education per year. ICB will continue to issue lists

and connections to relevant Education providers. ICB will continue to provide Education through its regional

network meetings and also the Annual Conference.

Other Responsibilities:

You must comply with the administrative provisions of the law.

Keeping records, comply with demands (Sn 263) notices.

Help clients know and comply with tax obligations!

Agents must agree with clients the areas that they have been engaged by that client to be ―responsible‖ to

assist that client. Specifically note in writing what you are doing and what you aren‘t doing. Then for the

areas that you are engaged you must be advising and helping the clients in those areas. Help them

understand, advise them when you need to, not just when they ask!

Professional Indemnity Insurance:

Under the legislation the Board ―may‖ require PI insurance. They do and they have prescribed it. As an

ICB member in practice you or the bookkeeping business you are working for must have PI insurance in

order to be providing services as an outsource bookkeeping service provider. ICB requirements and the

TPB requirements overlap and do not conflict (Refer PI section of ICB Website—www.icb.org.au/

Insurance_Details)

Follow Board directives:

If you become a registered Agent then you are obliged to comply with Board directions or requests.

What happens if you breach the code?

The Board has the ability to: Caution, require an agent to undergo a form of training, require an agent to

work under the supervision of another agent, restrict the services that the agent is allowed to provide,

suspension or cancellation of the agents registration.

Understanding the TASA 2009 code of conduct



Renewing your BAS Agent registration Renew early and beat the rush The Facts (as of August 7, 2011) 1. Notifying BAS Agents who expire on 28th Feb 2012, 29 Feb 2012 or 1 March 2012 MUST

lodge their complete renewal before 29 January 2012 (30 days before expiry)

2. Individuals who work for themselves or as the "supervising Agent" in a Business must either A. Be qualified

i. Certificate IV Accounting or Bookkeeping or Higher in Accounting / Commerce stream

and

ii. the Approved Course: as defined for the 2012 renewal: being the Activity Statement unit within Cert IV (or similar)

and

iii. Relevant Experience (see guidance notes) or

B. Transitional method no 2 i. Prove they provide BAS Services to a "competent standard" proven by letters from

2 clients or accountants

and

ii. for a "reasonable period" which is taken to be 700 hours in the last 2 years 3. Companies or partnerships must have

i. a "sufficient number" of supervising individual registered BAS Agents

and

ii. "fit and proper" Directors or Partners1

4. If you lodge your renewal before 29 January 2012 then your registration continues until the Board tells you otherwise

IMPORTANT Whereas at registration in 2010 you may have been told that you only required ONE registration, many of you will now require TWO.

Those operating their BAS Agent business through a company or partnership:

MUST have the Company or Partnership registered as an Agent - it should now register using a standard registration process

That Company or Partnership MUST have at least one Registered Individual Agent (this is the problem area that many of you were told not to register the individual - this individual MUST now register ASAP, i.e. 6 months before the company/partnership expires, which means before 29 September 2011.

The individual may now be able to register for the first time in accordance with 2A above or Transitional in accordance with 2B above.

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The Explanations

Is this about you? To check whether you have to renew soon: www.tpb.gov.au and check the register - when do you expire? If it is 2012, then this applies to you. Check both, you as an individual and your billing entity.

Copies of the notifications from the TPB BAS Agent Renewal letters

Company—refer www.icb.org.au/BAS_Agent Partnership—refer www.icb.org.au/BAS_Agent Individuals—refer www.icb.org.au/BAS_Agent

Why now?

The TPB are offering an incentive for early renewers.

15000 renewers all at the same time might melt a few systems.

Note the incentive: get in early and your next registration period might be longer.

Education requirements:

ICB Guidance Pages 16-17 of this guide

TPB Documents Page 18 of this guide

Relevant Experience:

ICB Guidance Pages 39-40 of this guide

TPB explanation Page 40 of this guide

Approved Course: ICB Directory of providers - refer to: www.icb.org.au/certificate_iv_in_financial_services_bookkeeping

Certificate IV: ICB Directory of providers - refer to: www.icb.org.au/certificate_iv_in_financial_services_bookkeeping

Obtain the Statement of Relevant Experience (SORE)

ICB Example form Page 42-45 of this guide

TPB Download—http://www.tpb.gov.au/TPB/

BAS_agents/Renew_your_registration_online/TPB/BAS_agents/

Registration_renewal_BAS_agent.aspx

How to fill in the renewal form

ICB Guidance—refer www.icb.org.au/BAS_Agent

TPB Portal login refer—www.tbp.gov.au



Explanation of the TPB process for renewal of BAS Agent Registration This paper is prepared to inform you of what the process entails and prepare you for what to ex-pect. Note: the program and the requests allow flexibility for you to save and return into the process later. What you need to do before you go into the online form

Download the TPB ―Statement of Relevant Experience‖ form and complete it manually (See ICB separate explanation paper) or www.tpb.gov.au then ―BAS Agents‖

Obtain two letters from clients about your ―Relevant Experience‖ (Refer to ICB explanation and templates in relation to these letters - note this is a TPB concept and not ICB)

Scanned image copies of your Qualifications. The system will require both: Certificate & the Academic

transcript. Specifically include proof of completion of the Activity Statement Unit and if

completed the Payroll Unit (refer ICB website for guidance on the education)

Obtain contact details of TWO other personal character referees. (Name, phone number and email) These people may be contacted to verify that you are a FIT & PROPER person.

Scan and save images of these documents to then upload into the TPB website Be prepared to answer Fit and Proper questions

If you have breached any of the fit and proper conditions you may not be able to renew, however be prepared to provide details to explain why you should still be considered Fit & Proper

Ever been an undischarged bankrupt or been in external administration Served or been sentenced to term of imprisonment Been convicted of a serious tax offence Been convicted of an offence involving fraud or dishonesty Been penalised for being a promoter of a tax exploitation scheme Been penalised for implementing a scheme…… Ever had a prior Agent registration cancelled, suspended, terminated Have a outstanding personal tax obligation (debt or returns) Any other reason you don‘t have good fame, integrity and character

What information you need before you start the online form: Your agent number and password to log in Your basic details of address etc Scanned images of

the ―Statement of Relevant Experience Form‖ the two letters from clients Qualification verification

Contact details of character referees

EXPLANATORY LINKS

www.icb.org.au/BAS_Agent - Education requirements of BAS Agents - Relevant Experience explanation and guidance - Directory to providers of the BAS Agent Skill Set www.tpb.gov.au

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TRANSITIONAL REGISTRATION – it continues

If you have not finished your qualification of Cert IV and the approved course: The TPB have determined that you may be able to gain an additional year of Transitional Registration. This ―Competent Standard‖ for a ―Reasonable Period‖ transitional method has been around since the law was first brought in. Previously it was a 3 year transitional registration. It now allows a further 12 months. Prove to the board by client or accountant reference that you are competent and have done 700 hours relevant experience in the last 2 years.

ICB Suggested answer: I have been providing the range of BAS Services as described in the regulation to the TASA2009. I work with GST, BAS, FTX, PAYG Withholding, PAYG Instalments, FBT & WET as required for my range of clients. I work with X no of clients. I am involved in the preparation and/or lodgement of Y no of Activity Statements. I have worked for client on these matters for approximately Z no of hours in the last 2 years.

For further details refer with the TPB website or ICB and search for Transitional Registration



Relevant Experience—ICB Guidance

ICB endeavour to obtain guidance on ―What is relevant experience? & What proof does the Board really require?‖ 2/8/11 Sent: Tuesday, 2 August 2011 12:30 To: Maskell, Mark

Tax Practitioners Board c/- The Secretary Dear Mr Maskell,

RELEVANT EXPERIENCE

We note the improved SORE form.

Further to our previous correspondence we note from your recent system requirements and process the following instruction to BAS Agents: "Attach a completed copy of your Statement of relevant experience at the end of the form. If you have completed your own statement, you must provide independent verification of your experience. This may include a reference from a registered agent or reference from two clients who are in a position to know what and how much experience you have had." We note that our recent survey of this community (817 responses) indicated the following:

76% work by themselves 20% have 1 - 5 clients, 20% 6-10, 33% 11- 30 and 21% over 30

Accordingly most BAS Agents will not have one or two clients who are able to 'know what and how much experience they have had". Given the 1000 hour (1400 hour) requirement this Relevant Experience is not able to be substantiated from one or two clients. Would you please advise what evidence it is realistic for such a profile of BAS Agent to provide in order to satisfy the Board's requirement? We ask the Board to clarify the information they are seeking in regards to client verification of relevant experience. While it may be reasonable to ask the client to confirm the length of time they have been associated with the BAS Agent, we do not believe that they will be able to elaborate on the intricacies of the work performed by the BAS Agent - therefore relevant experience is still questionable. What are you expecting from the client letters? The amount of hours? Are you expecting enough "client" evidence to substantiate 1000 hours? Would you also please provide guidance on what is to be considered "Relevant Experience"? Does "Work by an individual as a....BAS Agent" includes all manner of preparation and duties related to the role of that individual in the actual performance of BAS Services? We would anticipate that the requirement for "Substantial Involvement" would mean that the work performed does in fact lead up to and include the actual performance of the BAS Service for the client, but also it may be where another agent is also involved. Is there any work that a BAS Agent would be doing with a client that the Board would not consider forming part of the relevant experience? --------------------------- Institute of Certified Bookkeepers

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>>The reply 2/8/11 Subject: RE: Updated SORE form [SEC=UNCLASSIFIED] Thank you for the email. You may be aware that the Board has provided some information on this already which can be found at http://www.tpb.gov.au/TPB/BAS_agents/BAS_Relevant_Experience.aspx. The Board is currently considering what additional information can be provided to assist BAS agents on what it would consider relevant experience. Once the Board has considered this we will advise you on the outcome. As usual the Board would welcome any contribution from your association (or others) on what you believe would be appropriate evidence. In the meantime if agents have a problem meeting some of the recommended approaches in our advice to substantiate relevant experience then I would encourage them to identify any other mechanisms that they believe would provide evidence of relevant experience and include these, as best they can, in their renewal application. The Board will consider each of these on its merits and Board staff can contact the agent if the Board believes that additional evidence is required. Regards Mark Maskell | Secretary | Tax Practitioners Board ICB Comment: The additional information on the website does not yet provide adequate guidance. Given the incentive to renew early we are hoping that the Board will provide additional assistance sooner rather than later. In the meantime we encourage our members to;

Sign their own SORE (Statement of Relevant Experience)

Due to the Board information: obtain letters from two clients that state you have been performing BAS Services for them for whatever period of time

Alternatively if you have Tax Agents who do supervise you then get them to sign similar letters or a SORE.

Provide additional information on your SORE or in accordance with the draft Renewal submission template

Remember that this is about RELEVANT EXPERIENCE and not the qualification you may have



Relevant Experience—TPB Information

(August 1, 2011)

If you are applying to be registered as a BAS agent, or are applying to renew your registration as a BAS agent, you will need to have relevant experience with substantial involvement in providing BAS services.

You need to have 1400 hours of relevant experience in the past 3 years. However, if you are a voting member of either a recognised BAS agent association, or a recognised tax agent association you need to have 1000 hours of relevant experience in the past 3 years.

‗Relevant experience‘ for BAS agents means work by an individual that has included substantial involve-ment in one or more types of BAS services. This includes work:

as a tax agent or BAS agent registered under the Tax Agent Services Act 2009 (TASA), as a tax agent registered under the Income Tax Assessment Act 1936 (ITAA), under the supervision and control of a tax agent or BAS agent registered under the TASA, under the supervision and control of a tax agent registered under the ITAA, or of another kind approved by the Tax Practitioners Board (TPB).

A Statement of Relevant Experience* form will need to be completed and attached to the application for reg-

istration as an individual BAS agent, or for renewal of registration as an individual BAS agent. The information contained in the Statement should provide evidence of your substantial involvement in one or more types of BAS services. ‗Substantial‘ in this context means that the experience is real and is of an ample or considerable quantity. If you believe that you have relevant experience of ‗another kind‘, you should make a written submission in your application to the TPB. Experience of another kind might be experience which is not directly as a BAS agent but might have been in this field. This might include work as a training or IT consultant or as an aca-demic teacher. The TPB will need to consider any submission you make about your experience before it makes a decision about your registration application having regard to individual circumstances. What types of experience can you use to become registered? Relevant experience is work that you perform for a client or employer that leads up to and relates to the pro-vision of BAS services. However the ‗relevant experience‘ must include substantial involvement in BAS ser-vices. This means that the work includes calculation or consideration of a BAS provision. Most work in preparing the books and records of a business for the purposes of that business completing their BAS obligations, including their payroll obligations, would be considered appropriate relevant experi-ence. *The Statement of Relevant Experience can be downloaded from the TPB website

http://www.tpb.gov.au/CMDownload.aspx?ContentKey=0fe94eaf-448a-4b40-92a7-68b1299461e7&ContentItemKey=d9a8037f-6da4-4980-8df5-42d52988db0d

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Statement of Relevant Experience—ICB Example (page 1)




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Proving you are who you say you are to the ATO (and that you are allowed to be who you say you are) The ATO and the associations and the BAS Agents Advisory Group have spent considerable time and considerable iterations of development (and it probably hasnt stopped yet) around the process of the ATO identifying who they are talking to on the phone and whether they are al-lowed to talk to you.

When the ATO calls you! One of the wonderful ironies has always been that if you ring the ATO then you go through hoops to identify that you are allowed to talk to them about the client (See below for the current system) but when the ATO rings you, you don't really know it is from the ATO.

When you call the ATO! The ATO policy is that when you call, you go through a multistage identification to prove you are permitted to talk to the ATO about the client.

Ring the ATO Agent special number: 13 72 86

Provide your registered agent number

Identify the client by ABN, TFN, name

POI document ie details from a recent ATO notice sent to the client - ie a paper BAS has a DIN (Document Identification Number)

As an aside, please be careful of scam emails and phone calls pretending to be from the

ATO and offering refunds as long as you provide the bank account details.

Bob ATO



The ATO proving who they say they are

When the ATO call YOU

Agents can call the ATO on 13 72 86 and use the FKC they are given. Calls to this number are

charged at your local call rate.

The ATO have a BAS Agent Services guide with phone numbers, fast key codes, and areas within

the ATO available on their website.

These phone numbers are only available for Agents.

Alternatively, the normal phone number listed under ATO in the White Pages for Directory

Assistance is 13 28 69, you can use this to verify that the person actually is from the ATO.

Further details can be obtained at http://www.ato.gov.au/content/00245673.htm

Step 1

If the ATO identify the name of your practice at the beginning of the call without any

prompting, we will not ask for any further POI. However, if they don‗t, they will ask for your

registered agent number and the name of your practice.

Step 2

The ATO officers will continue to identify themselves clearly by providing their full name and

the section they work in. If at any stage you have doubts about the caller being an ATO

employee or you want more formal confirmation:

ask for the officer‗s contact details

the officer‗s full name

their extension number, if available

the name of their team leader and their extension number

return their call on 13 28 69 between 8.00am and 5.00pm, Monday to Friday.

You could also ask the person calling to confirm their identity by either faxing you a letter on

ATO letterhead or emailing you.

ATO

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What GST codes to use where? There are a number of types of transactions requiring classification around GST & the BAS;

1) Sale where GST has to be charged *GST registered business that is selling an item that requires GST to be charged, then has to charge and collect GST and report this at G1 on the BAS. (Software tends to use ―GST‖ as the code to record and report these)

2) Sale where GST is not charged *If you are not registered for GST then don‘t bother reading this as you don‘t have to code anything as anything. No GST is charged on your sale and you don‘t need to report on a BAS. *GST registered business: the item you are selling is not subject to GST ie fresh food then report this at G1 but no GST to be charged. It is also reported at G3 (Software: ―Fre‖)

3) Sale where GST is buried in the price (Input taxed) *most business earn or would like to earn interest income. This is valid reportable income as is residential rent. It is reportable at G1. What it means is that the sale price may have GST buried in the price charged due to the way expenses are handled (see #7 below). You do not have to pay the GST to the tax office. GST is buried in the price because your supplier ie the bank has dealt with the GST in your expenses. (Software: ―ITS‖) Note it really doesn‘t matter if this is coded as ―Fre‖ as it makes no difference to the ultimate GST amount

REMEMBER: The GST status of a sale normally has nothing to do with claiming back GST on expenses.

4) Purchase of an expense item where you paid GST and you are allowed to claim GST back. *This item together with #1 above applies to most items and services of most GST registered businesses. Must be reported at G11. (Software: ―GST‖ or ―NCG‖ (the latter being Non Capital GST)

5) Purchase of an expense item where you did not pay GST. *Some like to split this into two parts: ―a‖ being where you buy from a business that is not registered and ―b‖ being where the item you buy ie medical supplies, water or education has no GST charged to you. *In either case it is reported at G11. On the full GST worksheet it is also reported at G14. (Software: ―a‖ GNR, ―b‖ FRE.)

6) Purchase of an expense item where you paid GST and you are not allowed to claim GST as an input tax credit – the GST is part of the cost of the expense.

*This applies when you buy items which are used towards making ―Input Taxed Sales‖ such as resi-dential rent. It also applies if you make significant interest income or other investment income ie10% of your turnover. You are required to absorb GST as part of the cost of your expenses. *It is reported in G11 and on the worksheet at G13.

7) Purchase of a capital asset where GST is paid and you are allowed to claim it back *Government wants to know the Capital Expense amount of items over $1000 in value. *report this at G10 (Software: ―GCA‖ or ―CAG‖, prefer CAG as it doesn‘t start with ―G‖)

8) Purchase of a capital asset where GST is not paid and therefore no GST to claim back

Similar to #9 above it is reported in G10 but would also be included at G14 on the worksheet. (Software: ―CFR‖ or ―CAF‖

9) Transactions that are not reportable. *Mostly these are transactions to do with the shifting of money from one account to another. ie you are repaying a loan then it is shifting money from one bank account off the loan account – don‘t report this. If the owner is taking money out of the business then it is shifting money from the bank account to his personal loan account – don‘t report this. *Depreciation entries – no body paid money to anybody but it is an accounting entry to adjust the value for book purposes – no GST effect and not reportable. *Payroll is not reportable for GST (Software: ―N-T‖ or ―No Code‖)

ULITMATE REQUIREMENT: Ignoring all the above for a moment, a business is obligated to report and pay a net amount of GST. It is this requirement that you are penalised for getting wrong or you are charged interest for

underpaying.



Authority to act on a clients behalf

AUTHORITY FOR BAS Agent (named below) to act on behalf of the Taxpayer (named below) in

respect to the taxpayers dealings with the Australian Taxation Office.

This authority extends to all areas agreed between the Taxpayer and the BAS Agent which the

BAS Agent is permitted to undertake by law, including but not limited to;

Adding the Taxpayer to the Client List of the BAS Agent with the ATO ECI lodgement

facility

Adding the Taxpayer to the Client List of the BAS Agent on the ATO BAS Agent view

of the Portal

Representing the Taxpayer in their dealings with the Commissioner in relation to a

BAS Provision

Preparing and Lodging Activity Statements

Having access to activity statement and related information that may be provided via

access to ECI or Portal

Taxpayers Details

Type of taxpayer Individual / Trust / Partnership / Company

Name:

Individuals: Date of Birth: Male / Female

Tax File Number: ABN: (if applicable)

Contact Phone numbers:

Home Address:

Business Address:

Postal Address:: It is agreed that the Activity Statements will be mailed to:

BAS Agents Details

BAS Agent Name (Company or trading name):

Primary Authorised Individual of that Agent:

BAS Agent Number: Contact Name:

Contact Phone Number:

Taxpayer Authorisation

I hereby provide the above authorisation until revoked in writing, I am authorised to make this

declaration

Signed___________________________ Name:

Capacity: (Self / Director / CEO / Partner)

BAS Agent Consent

I declare I am authorised under the TASA2009 to act as or for a Registered BAS Agent and am

able and permitted to provide the above services:

Signed__________________________ Name:

Capacity: (Self / Director / CEO / Partner)

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Authority to lodge a BAS on a clients behalf

Activity Statement Details

Entity Name:

ABN:

BAS Period: Bas for period commencing / / to / /

Document Identification Number (DIN):

Entity‘s Declaration I declare that;

• the information provided to the BAS Agent for the preparation of the activity statement is

true and correct,

• to the best of my knowledge all relevant information has been provided to the BAS Agent

• that we have valid tax invoices for all amounts of GST Input Tax Credits being claimed in

this Activity Statement, and that

I am authorised to make this declaration.

I authorise the BAS Agent to give this activity statement to the Commissioner of Taxation.

Signed___________________________ Name:

Capacity: (Self / Director / CEO / Partner) Date:

BAS Agents Details I declare that:

I have prepared this activity statement in accordance with the information supplied by

the entity;

I have received a declaration made by the entity that the information provided to me

for the preparation of this activity statement is true and correct; and

I am authorised by the entity to give the information in this activity statement to the

Commissioner.

Signed__________________________ Name:

Capacity: (Self / Director / CEO / Partner) Date:

BAS Agent Name (Company or trading name):

BAS Agent Number: Contact Name:

Contact Phone Number:



Appendix

Tax Agent Services Act 2009 (TASA2009) - The History

Start of the New Law – The Timetable

Wednesday 26th November

House of Reps debates two elements of the new system – likely to pass it through to the senate

March 2009

Senate to consider the Bill

April 2009

Law enacted and receive Royal Assent – The clock starts ticking on 9 months before start date

Late 2009

The Transitional Bill and the Regulations to be tabled and processed by Parliament (these bills contain the detail that really effect the next 5 years)

April till December 2009

New Tax Board appointed and undertakes all implementation work

January 1, 2010 (estimated) – Start Date

Transitional period starts (see below)

First date that new ―BAS Agent‖ exists

Applications to register as a BAS Agent able to be lodged (possibly earlier but I doubt it)

Code of Conduct as prescribed by the new law must be adhered to by all bookkeepers acting as

transitional or actually registered BAS Agents

Must have Professional Indemnity Insurance

Government embarks on an advertising and information program to businesses about the new law (hopefully)

January 2010 till December 2011

Act as a transitional bookkeeper

Apply for your initial registration (see below)

Before December 2014

Be certified to obtain educational qualification of at least Financial Services Certificate IV (Bookkeeping)

or (Accounting) including a GST BAS taxation principles unit (refer below)

Renew your registration Please note, if the passing through parliament slips at any point then all other dates are likely to delay by the same period. The 9 months to start date is the maximum period of time, however our information is that nobody expects to be ready before that date.

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Appendix


TAX AGENT SERVICES LAW – Update July 2009

―Creation of the BAS Agent!‖ (This article concentrates on the law as applied to bookkeepers and the future BAS Agents. We have not discussed Tax Agents in the context of the comments below.) What is the idea behind the new Tax Agent Services law? It has been recognised that a portion of the business community relies on an external bookkeeper to assist with various aspects of the Business Activity Statement. The legislation does not affect the employee bookkeeper. It is recognised that in order to properly, correctly and effectively assist business with preparation of their BAS that such ―help‖ should be provided by people who are accredited to help. The creation of the Registered BAS Agent seeks to provide protection to the consumer in that the consumer can now know who is registered (accredited to a skill set and experience level) and can therefore be ―RELIED ON‖ to assist them with the preparation of the BAS. It will create a differentiation between bookkeepers who can be ―Relied on‖ to assist with the preparation of the BAS, whom will be able to be called ―BAS Agents‖, and bookkeepers who may still provide bookkeeping services (data entry, reconciliation and reporting) but are not able to be relied on to provide assistance to a business client in respect to the actual completion and certification of the BAS.

This law helps define the career and potential development path of a bookkeeper to BAS Agent

What are the advantages of the new system? BAS Agents become a more formalised and recognised part of the Tax Services industry; enabling ATO to provide enhanced services and assistance to BAS Agents. Clients/Consumers are being provided a level of ―consumer protection‖ in that they can now know they can engage a BAS Agent to assist them whom has met the legislative requirements. Taxpayers who engage a BAS Agent have access to ―safe Harbour provisions‖ which remove penalties for misstatement or late lodgement if incurred due to a mistake of the agent.

What does it mean for bookkeepers? Bookkeepers need to decide their style of business. A viable business model is to provide bookkeeping ser-vices but NOT provide a BAS Service where they are relied on as providing authoritative or final sign off on matters relating to the BAS. Typically this style of business would be providing information for review by another Agent.

Alternatively the bookkeeper may decide to structure their business so that they are able to position them-selves as the BAS Agent; providing BAS Services to clients with authority and legally. An individual must be registered as a valid BAS Agent and working with that business in order for the business to

comply.



Appendix

Tax Agent Services Act 2009 (TASA2009) - The History A person seeking to develop themselves to be eligible for registration as a BAS Agent would first need to work with a BAS agent to gain the appropriate experience.

What must you do if you are a BAS Agent? Once you become a BAS Agent you must meet the ongoing requirements of adhering to the Code of Conduct as prescribed in the legislation including; continuing education, independence, competence, honesty. A registered BAS Agent will be subject to the rulings of the Tax Practitioners Board. You will be required to have Professional Indemnity Insurance. The yet to be appointed tax board will need to further refine the guiding information around these matters.

How to become a BAS Agent? Once the system is up and running; to first gain BAS Agent registration a bookkeeper must have the re-quired education and the required relevant experience (both of these requirements are yet to be finalised however a Certificate IV Financial Services (Bookkeeping) or (Accounting) or similar is likely to be the ed-ucation requirement and 1400 hours of relevant BAS Service work over 3 years is likely to be the experi-ence requirement.) There are further requirements but these are the two main ones. In the early days a bookkeeper may be able to gain Transitional status (2 years of continuing to act within the new law) or gain the first registration without meeting the above two requirements.

Which course? Your selection of Certificate IV Bookkeeping or Accounting depends on your career path intentions. If you are aiming to develop further into an accountant then the core and elective subjects of the Accounting qualification maybe more relevant for you. If you are aiming to be an effective bookkeeper/BAS Agent then the Bookkeeping course contains more relevant subjects for the performance of those tasks. Both courses provide credits towards further study if you so choose.

What is the Professional Indemnity Insurance requirement likely to be and what is valid PI Insurance? The new tax board will hopefully provide guidance and quickly, as to appropriate level of insurance that they will require of BAS Agents. The level of risk of most BAS Agents is substantially less than the typical accounting practice hence the ICB guide is for $250,000 level of cover with $5,000 excess and that legal costs MUST also be covered with the same minimal level of excess. The Willis policy recommended by ICB covers $250,000 of in-demnity plus $250,000 costs with only $5000 excess – details on our insurance web page. Be careful of some of the policies being marketed to bookkeepers, some policies are cheap for very inter-esting reasons and we do not believe they will meet the requirements of the new board. One policy being sold to bookkeepers does not meet the requirements that would be accepted by the accounting bodies own requirements of their members.

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Appendix


How to make the most out of the new environment? The development of the registered BAS Agent helps define the bookkeeper industry and will help designate the type of service being provided. It will remove any confusion by the client as to whether a bookkeepers work is allowed to be the final say in; preparation of the business BAS & the application of GST. Bookkeepers can therefore market their business specifically and with the appropriate credibility. If you are to become a BAS Agent – tell your existing and any new clients that you can ―do the BAS legally‖ for them. With the great development of the Cert IV Financial Services (Bookkeeping) as a course that is relevant to the bookkeeper / BAS Agent and with the general improvements in the number and quality of training providers, the course is becoming more relevant, more cost effective and better quality. So bookkeepers can now avail themselves of more appropriate study. Refer to the ICB ―Bookkeepers guide to Cert IV (Bookkeeping) providers‖.

Where to get help? The ATO website provides information on the current compliance with Sn. 251L which is the law in effect until the future start date of the new law. The ATO may increase their resources around the impending system but this is more likely to be provided by the new Tax Practitioners Board when it comes into being (which should be late July to Mid August.) The ICB aims to provide all bookkeepers and others with current information on how the system will be implemented, its effects and how to be involved. www.icb.org.au ICB will seek to become recognised under the new legislation – the new system allows for recognition of BAS Agent Associations that may then assist the new board with their role in many facets.

When it‘s law: Action items from now - until - start date In preparation for the new law but also in order to comply with the current law Sn. 251L(6) BAS Services

may only be provided by:

1) Registered Tax Agents

2) Members of Recognised Professional Accounting Associations

3) If you are ―Directed by a tax agent‖

However various BAS like services are able to be provided by ―Bookkeepers‖ who don‘t meet the above

under current law (the requirements change under the new law):

4) Installing & configuring commercially available accounting software

5) Using commercially available accounting software to generate a BAS like report

6) Ordinary bookkeeping services

(for clarification refer to www.ATO.gov.au/bookkeeper or www.icb.org.au)

http://www.icb.org.au



It‘s law: Action items from start date - until - you register How to keep doing BAS Service work during the Transition. There are two transitional methods of you being legally allowed to continue providing BAS Services after the start date: A 2 year period is called the ―Transition Period‖ during which you could be called a ―Transitional BAS Agent‖ until you gain your registration.

1) If you comply with current law Sn. 251L(6) as at start date (Member of a Recognised Professional Association, Payroll service, Customs broker or Bookkeep-ers working under the direction of a registered tax agent)

or 2) If you currently ―legally‖ provide a BAS service according to current law, including:

Installing and configuring software including GST codes Using software to generate a BAS like report And you provide these BAS services during the next 2 years

then for either (1) or (2) you are considered as though you were registered in the new system and you may legally continue doing that same BAS work for 2 years.

HOWEVER you must notify the Tax Practitioners Board of your status as a transitional BAS Agent within 6 months. Alternatively

3) If neither of the above, you need to immediately apply for registration: a. Within 3 years of start date (including straight away) b. You may not yet have the required education qualification c. You are a fit and proper person d. You convince the board that you provide BAS services to a competent standard and have

done so for a reasonable period. Then you are eligible to be registered, but you have to apply before you do any BAS Service work.

It‘s law: Action items during transition or after

1) Register immediately when possible if you are not able to be a ―Transitional BAS Agent‖ If you cant qualify under any of the above provisions during the 3 year transition period or following the expiry of the transition period then you are subject to the normal registration requirements.

2) Register within 2 years if you are able to be a ―Transitional BAS Agent‖

REFER TO www.ICB.ORG.AU/BAS_Agent for all things BAS Agent

How to be legal today

Resources, explanations and updates

Bookkeepers guide to ALL Cert IV Bookkeeping providers

Professional Indemnity Insurance – information and access to creditable providers

Appendix


The Institute of Certified Bookkeepers

Proudly supported by:

Phone: 1300 85 61 81

Fax: 1300 85 73 93

Email: [email protected]

Web: www.icb.org.au

Level 27

Rialto South Tower

525 Collins Street

Melbourne Vic 3000