New Code of Conduct Guidance
The Tax Practitioners Board (TPB) has released updated guidance related to the reforms of the Code of Professional Conduct (Code). These materials clarify the application of the eight new Code items outlined in the Tax Agent Services (Code of Professional Conduct) Determination 2024 (Determination). Firms employing over 100 tax practitioners have been subject to this Determination since January 1, 2025, while smaller firms will need to comply starting July 1, 2025.
The new guidance includes:
- TPB(I) 46/2024 Handling conflicts of interest while engaging in government activities and ensuring confidentiality in government interactions.
- TPB(I) 44/2024 Promoting and maintaining the ethical standards of the tax profession.
- TPB(I) 43/2024 Breach reporting under the Tax Agent Services Act 2009
- TPB(I) 48/2024 Supervision, competency and quality management under the Tax Agent Services Act 2009
- TPB(I) 47/2024 Obligation to maintain proper client records of tax agent services provided
- TPB(I) 45/2024 False or misleading statements
- TPB(I) 49/2024 Keeping your clients informed
Reforms to Donations and Philanthropic Giving
The Government is proposing to eliminate the requirement that a gift be worth $2 before a donor can apply for a tax deduction and reform how philanthropic funds work. To better reflect their role in supporting charitable giving, ancillary funds will be renamed to “giving funds.” The Government will also seek input on raising its annual distribution rate.
Additionally, there are plans to allow giving funds to spread their annual distributions over three years, offering more flexibility for funding capital projects or large initiatives for charities. No draft consultation or legislation has been released yet; this announcement follows recommendations from the Productivity Commission and the Blueprint Expert Reference Group as part of the Not-for-Profit Sector Development Blueprint.
Build to Rent Affordability Standards
The Income Tax Assessment (Build to Rent Developments) Determination 2024 has been issued by the Government, which establishes the initial affordability standards for Build to Rent developments. The Build to Rent tax incentives are part of the Government’s broader plan to establish 1.2 million well-located homes by 2029. As part of the plan, 10% of dwellings in the Build to Rent development should be ‘affordable dwellings’. As per the determination, the dwellings must be rented at 74.9% or less of the market rate and income thresholds for tenants who are eligible.
Digital Asset Regulatory Regime
The Government is collaborating with the regulators and industry to develop a digital asset regulatory regime. The Australian Securities and Investments Commission is also suggesting stakeholders to make improvements in its guidance on how current financial product definitions apply to digital assets and related products.
Feedback from ASIC’s consultation will help inform exposure draft legislation for the Government’s ‘payment stablecoin’ and ‘digital asset platform’ reforms, which will be issued in 2025. This legislation will create a licencing regime for businesses that offer clients digital assets and hold them, and clarify the regulatory framework for stablecoins.
Extension of Charity Transitional Reporting
The government has issued the draft Australian Charities and Not-for-profits Commission Regulations 2025, which proposes to extend the reporting exemption that applies for some entities up to the 2029 financial year.
Under the Australian Charities and Not-for-profits Commission Act 2012, some not-for-profit entities must report each year to the Australian Charities and Not-for-profits Commission (ACNC). Under some current transitional regulations, charities are considered to have met this reporting requirement when they submit appropriate documents to other Australian government agencies. The Australian Charities and Not-for-Profits Commission Regulation 2016 set this exemption for the 2015 to 2024 financial years. The draft regulations propose to extend the transitional reporting exemption up to the 2029 financial year.
Miscellaneous Amendments to Legislation
Exposure draft materials have been released by the Government to make miscellaneous and technical changes to Treasury portfolio legislation. The draft changes correct technical or drafting mistakes, identify unintended results, and remove anomalies. Among the measures:
- Notifying ASIC about authorised representatives – the Corporations Act offers that an individual authorising a representative to offer a financial service needs to notify ASIC within 15 business days of that authorisation. As per Subsection 916F(3) of the Corporations Act, an individual who has authorised a representative to offer a financial service needs to notify ASIC within 10 business days if the representative’s details change. The changes or amendments extend the timeline in both provisions to 30 business days.
- GST-free disability services – updates references to the Act to ensure the supply of disability services funded under the Disability Services and Inclusion Act 2023 is GST-free.