Tax governance30 July 202626 min read

The Tax Practitioners' Code

A plain-English guide to the Code of Professional Conduct applying from 1 July 2025.

Last reviewed: 30 July 2026

The Code of Professional Conduct sets the minimum professional and ethical standards that every registered tax agent and BAS agent must follow.

The Code is law. It is not optional guidance.

For practitioners with 100 or fewer employees, including sole practitioners, eight additional Code obligations started applying on 1 July 2025. Larger practices became subject to those obligations from 1 January 2025.

This guide brings the original and additional obligations together in one place. It explains them in plain English, without replacing the legislation or official guidance.

The Code in one sentence

A registered tax practitioner must:

Act honestly, put lawful client interests first, protect information, provide competent services, keep proper records and operate a professional practice that people can trust.

How the Code is structured

The legislation contains 17 Code items.

The first 16 items contain direct professional obligations. Item 17 requires practitioners to comply with eight additional obligations contained in the Tax Agent Services (Code of Professional Conduct) Determination 2024.

For ease of understanding, this guide explains the combined Code as 24 practical duties, grouped under five areas:

Honesty and integrity
Independence
Confidentiality
Competence
Other professional responsibilities

The Code applies to all registered tax agents and BAS agents, including sole practitioners, companies and partnerships.

Part 1: Honesty and integrity

1. Act honestly and with integrity

You must tell the truth and behave in a way that is fair, open and trustworthy.

You must not:

deliberately mislead a client, the ATO or the TPB
hide important facts
alter records to create a false result
claim deductions or positions you know cannot be supported
sign declarations you know are incorrect
help a client break the law.

Acting with integrity means doing the right thing even when it is difficult, inconvenient or may cost you a client.

2. Keep your own tax affairs in order

You must comply with the tax laws in your own personal and business affairs.

This includes properly managing matters such as:

your income tax returns
business activity statements
PAYG withholding
superannuation guarantee
tax payments
practitioner registration obligations.

Having financial difficulties does not automatically mean you have breached the Code. However, you should lodge required documents on time and take proper steps to deal with tax debts, such as entering into an agreed payment arrangement where appropriate.

A tax practitioner who repeatedly ignores their own tax obligations may lose the community’s trust and may also place their registration at risk.

3. Properly account for client money or property

This obligation applies when you receive money or other property from or for a client and hold it on trust.

You must:

keep it safe
keep accurate records
use it only for its intended purpose
follow the client’s lawful instructions
account to the client for how it was handled.

You must not mix client money with your own money or use it for your personal or business expenses.

This obligation may not affect practitioners who never hold money or property on behalf of clients.

4. Uphold the standards of the tax profession

You must support and promote the Code, both through your own conduct and when working with other tax practitioners.

You must not behave in a way that you know, or should reasonably know, may:

damage public trust in the tax profession
damage public trust in the tax system
bring the tax profession into disrepute
protect practitioners from being held responsible for misconduct
undermine the work of ethical tax practitioners.

This obligation is broader than simply avoiding fraud. It requires tax practitioners to support a professional culture where poor conduct is identified, addressed and not covered up.

For example, a practice should not ignore, hide or destroy evidence of possible misconduct by a practitioner or staff member.

5. Do not make false or misleading statements

You must not make, prepare, permit or direct another person to make a statement to the following bodies if you know, or should reasonably know, that the statement is materially false or misleading:

the Tax Practitioners Board
the Commissioner of Taxation
another Australian government agency.

This includes statements made:

for a client
about your own affairs
as a registered tax practitioner
in another professional or personal capacity.

A statement can be misleading because it contains incorrect information. It can also be misleading because it leaves out an important fact.

“Material” generally means the incorrect or missing information is important enough that it could affect a decision, outcome or understanding.

When you later discover an incorrect statement

Discovering a mistake does not automatically mean you have breached the Code.

What matters is:

what caused the error
whether reasonable care was taken
how serious the error is
what you do after discovering it.

Where you later have reasonable grounds to believe that a statement given to the TPB or ATO was materially false or misleading because of a failure to take reasonable care, recklessness or intentional disregard of the law, you may need to take action.

Depending on the circumstances, this may include:

taking reasonable steps to correct your own statement
telling the client that their statement should be corrected
explaining the possible consequences of not correcting it
withdrawing from the client relationship in serious cases
notifying the TPB or ATO in limited, serious circumstances
taking further action reasonably required in the public interest.

The requirement to notify the TPB or ATO is not an automatic reporting rule for every client error.

Notification generally arises where all of the following apply:

the statement was connected with recklessness or intentional disregard of the tax law
the client has not corrected the statement or properly explained it within a reasonable period
the practitioner reasonably believes the client’s actions have caused, are causing or may cause substantial harm to other people or the public.

There are also limited exceptions where taking certain action would be unlawful or create an unreasonable safety risk.

Practical rule

When you identify a possible false or misleading statement:

stop and review the facts
assess whether the error is material
consider how the error occurred
advise the client in writing
recommend correction
document the client’s response
record your decision and reasons
obtain legal or professional advice where the matter is serious or uncertain.

Part 2: Independence

6. Act lawfully in your client’s best interests

You must act in the best interests of your client, but only within the law.

This means you should:

understand what the client is trying to achieve
provide advice that is appropriate to their circumstances
explain lawful options
avoid allowing your personal interests to influence your advice
tell the client about important risks and consequences.

Acting in a client’s best interests does not mean doing whatever the client asks.

You must not:

lodge information you know is incorrect
create false records
backdate documents
hide income
claim amounts without a reasonable basis
help a client avoid their lawful obligations.

Where a client instructs you to act unlawfully, the lawful course is to refuse the instruction and consider whether you should continue acting.

7. Identify and manage conflicts of interest

A conflict of interest arises when your personal interests, duties or relationships could affect—or appear to affect—your professional judgment.

Examples may include:

acting for both parties to a dispute
acting for separating spouses
advising several business partners who no longer agree
receiving a benefit for recommending a product or service
having a financial interest in a client transaction
holding confidential information from a former client that is relevant to a new client.

You must have arrangements to:

identify conflicts
assess their seriousness
disclose them clearly and promptly
obtain informed consent where appropriate
manage the conflict
stop acting where the conflict cannot be properly managed.

Disclosure should be specific and meaningful. Simply including a general conflict clause in an engagement letter may not be enough.

You should document:

the conflict
who was affected
what was disclosed
any consent received
the safeguards applied
why you decided to continue or stop acting.

8. Manage conflicts when doing work for government

This additional obligation applies when you undertake professional activities for an Australian government agency, whether paid or unpaid.

For example, it may apply where you:

advise a government department
take part in a confidential government consultation
sit on a government panel
help design policy
provide specialist feedback or assistance to government.

You must take reasonable steps to:

identify and document any material real or apparent conflict
disclose it to the government agency as soon as you become aware of it
manage or reduce the conflict
avoid the conflict where appropriate and possible.

A conflict is not automatically prohibited. The government agency may decide that you can continue, subject to appropriate safeguards.

Part 3: Confidentiality

9. Protect client information

You must not disclose information about a client’s affairs to another person unless:

the client has given permission, or
you have a legal duty to disclose it.

Client information includes more than tax returns and financial statements. It can include:

names and contact details
tax file numbers
identity documents
income and expense information
family information
business information
emails and correspondence
verbal discussions
information held in software or cloud systems.

You should obtain clear permission before sharing client information with:

contractors
offshore service providers
bookkeepers
consultants
related businesses
software providers, where the provider can access or use the information
family members or business associates of the client.

Permission should be informed. The client should understand what information will be shared, with whom and for what purpose.

You should also use reasonable security controls, including secure storage, access restrictions, passwords, backups and safe methods of sending sensitive information.

10. Protect information received from government

You must protect information received directly or indirectly from an Australian government agency when dealing with the agency in your professional capacity.

You must not disclose the information unless:

you have a legal duty to disclose it, or
it is reasonable to conclude that the agency authorised the disclosure and you use the information consistently with that authority.

You must also not use government information for:

your own advantage
the advantage of an associate
the advantage of your employer
the advantage of an employee
the advantage of a client,

unless the government agency authorised that use.

This obligation can apply to dealings with an agency on behalf of a client. However, information received about a client will often be understood as authorised for disclosure to that client.

Publicly released government information and general information provided to the tax profession are not normally restricted in the same way.

Practical rule

When government information appears confidential, restricted or sensitive:

check how it may be used
check who may receive it
do not assume it can be shared within your whole firm
consider cloud storage and offshore access
seek written permission where there is uncertainty
keep a record of the authority relied upon.

Part 4: Competence

11. Provide services competently

You must provide tax agent services to a proper professional standard.

This includes services you provide personally and services provided on your behalf.

Competence means having and applying the knowledge, skill, care and judgment reasonably needed for the work.

You should:

accept work only where you have the required competence
understand the relevant facts
apply the correct law
meet relevant deadlines
communicate clearly
obtain specialist assistance where needed
properly review work before it is given to the client or lodged.

You do not need to know everything. A competent practitioner recognises when a matter is outside their experience and seeks help, researches the issue or refers the client to an appropriate specialist.

12. Keep your knowledge and skills up to date

Tax laws, systems and professional requirements change regularly.

You must maintain knowledge and skills relevant to the services you provide.

This includes:

completing required continuing professional education
monitoring important law changes
understanding the services you offer
keeping software and procedures current
learning how new technology affects your work
avoiding work where your knowledge is no longer sufficient.

Completing the minimum number of CPE hours is important, but competence is broader than simply recording hours. Your training should be relevant to the work you actually perform.

13. Take reasonable care to understand the client’s facts

Before making a statement or doing something for a client, you must take reasonable care to understand the relevant facts.

You should not simply accept every figure or explanation without thinking about whether it appears reasonable.

Reasonable care may include:

asking appropriate questions
comparing information with earlier years
investigating unusual amounts
asking about missing information
checking relevant documents
following up inconsistencies
recording important assumptions.

The Code does not require you to audit every client or independently verify every document.

However, you must make further enquiries where information appears:

incomplete
inconsistent
unusual
unreasonable
different from previous years
unsupported in circumstances where evidence would normally be expected.

What is reasonable depends on the client, the service, the risk and the complexity of the matter.

14. Take reasonable care when applying the tax law

Once you understand the facts, you must take reasonable care to apply the tax law correctly.

This includes:

identifying the relevant law
checking that the law is current
applying it to the client’s actual circumstances
considering relevant ATO guidance and court decisions
recognising uncertainty
explaining important assumptions or risks
seeking specialist advice where needed.

A practitioner does not necessarily breach the Code merely because an interpretation is later found to be wrong.

The question is whether a competent practitioner, acting reasonably in the same circumstances, would have taken similar care in researching and applying the law.

15. Keep proper client records

You must keep records that correctly show the tax agent services provided by you or on your behalf to each current and former client.

The records must:

be in English, or be easily converted into English
be kept for at least five years after the service is provided
show the nature of the service
show the scope of the service
show the outcome
refer to the information considered
include advice received from the client
include advice provided to the client.

For complex matters, the records must also explain:

the relevant facts
important assumptions
the reasoning used
how calculations were made
how estimates or determinations were reached.

Records may include:

engagement letters
checklists
working papers
client emails
file notes
telephone discussion notes
information requests and responses
advice from lawyers or other specialists
ATO correspondence
calculations
lodgment approvals
copies of advice provided
records relating to client money held on trust.

Where important advice is given verbally, create a written record as soon as practical.

The practical file test

Another competent practitioner should be able to review the file and understand:

what you were engaged to do
what information you received
what questions you asked
what decisions you made
what advice you gave
what was lodged or completed
how the final result was reached.

16. Make sure people working for you are competent

You remain responsible for tax agent services performed on your behalf.

This may include work performed by:

employees
contractors
bookkeepers
offshore workers
consultants
related service businesses.

You must ensure each person:

has knowledge and skills relevant to the work
receives appropriate training
understands their role
knows when to ask for help
is properly supervised
has their work reviewed at an appropriate level.

The amount of supervision will depend on:

the person’s experience
their qualifications
the complexity of the work
the risk involved
whether they work remotely
the quality controls in the practice.

Work should receive substantive review and approval before it is sent to a client or lodged where review is needed to ensure competent service.

A sole practitioner with no staff will have fewer obligations in this area. However, the obligation becomes relevant as soon as another person provides tax agent services on the practitioner’s behalf.

Part 5: Other professional responsibilities

17. Do not obstruct the tax laws

You must not knowingly obstruct the proper administration of the tax laws.

This means you must not deliberately interfere with the work of the ATO or TPB.

Examples may include:

intentionally withholding relevant information
destroying documents
deliberately providing irrelevant or incomplete answers
repeatedly ignoring lawful requests
causing unreasonable delays without a genuine reason
preventing access to records that must lawfully be provided.

You may still:

protect your client’s lawful rights
challenge an ATO or TPB position
request additional time for a genuine reason
claim legal professional privilege where it properly applies
object to or appeal a decision.

Lawfully disagreeing with the ATO or TPB is not obstruction. Deliberately preventing them from carrying out their legal duties may be.

18. Explain the client’s important rights and obligations

You must advise clients about rights and obligations under the tax laws that are materially connected with the services you provide.

Depending on the work, this may include explaining:

what records the client must keep
relevant lodgment and payment dates
the need to provide complete and accurate information
amendment periods
objection and review rights
possible penalties and interest
the consequences of an incorrect statement
the client’s responsibility for declarations they approve
the need to correct identified errors.

You do not have to explain every part of the tax law. You must explain the matters that are important to the particular service and client.

19. Maintain suitable professional indemnity insurance

You must maintain professional indemnity insurance that meets the TPB’s requirements.

The policy should be suitable for matters such as:

the size of your practice
the services you provide
the number and type of clients
the level of risk
the value of possible claims.

You should regularly check:

the insured entity and practitioner names
the policy period
coverage limits
exclusions
retroactive cover
run-off cover
whether new services are covered.

Holding a policy is not enough if the policy does not properly cover the practice or the services being provided.

20. Respond properly to the TPB

You must respond to requests and directions from the TPB in a timely, responsible and reasonable manner.

This means you should:

read TPB correspondence promptly
respond by the due date
provide complete and accurate information
ask for more time before the deadline where genuinely needed
comply with lawful directions
keep records of your response.

Ignoring the TPB, providing misleading answers or repeatedly delaying without a genuine reason may breach the Code.

21. Do not use a disqualified entity without approval

You must not employ or use a disqualified entity to provide tax agent services on your behalf if:

you know, or should reasonably know, that the person or entity is disqualified, and
the TPB has not approved the arrangement.

A disqualified entity is generally an unregistered person or entity that has experienced certain serious events specified in the law.

Before allowing a new employee, contractor or service provider to perform tax agent services, you should make reasonable enquiries about whether they are permitted to do that work.

Keep evidence of:

questions asked
declarations received
checks completed
any TPB approval.

This does not mean every administrative worker must be registered. The key question is whether the person is providing a tax agent service on your behalf.

22. Do not act as a front for a disqualified entity

You must not provide tax agent services through an arrangement with a disqualified entity where you know, or should reasonably know, that the entity is disqualified.

This rule is intended to stop disqualified or unregistered people from controlling a registered practice or using a registered practitioner’s name, registration or access credentials.

Warning signs may include situations where another person:

controls the clients
controls the fees
makes the important tax decisions
performs the tax work without proper supervision
uses your agent credentials
asks you to sign or lodge work without reviewing it
presents themselves to clients as the real tax practitioner.

Your registration must not be rented, lent or used to provide cover for someone who is not legally permitted to provide the service.

23. Maintain a quality management system

Every registered tax practitioner must establish and maintain a quality management system.

This includes sole practitioners.

The system must be designed to give you reasonable confidence that you are complying with the Code. Its policies and procedures must be:

documented
used in practice
monitored
updated
enforced.

A document that is saved in a folder but never followed is not an effective quality management system.

The system should cover areas such as:

governance and professional responsibility
compliance with the Code
client acceptance and continuation
engagement letters
conflicts of interest
client confidentiality
client identity checks
performance of engagements
staff competence and supervision
client records
complaints
false or misleading statements
monitoring
correction of identified weaknesses.

The size and complexity of the system should match the practice.

A large firm with complex clients will need detailed controls. A sole practitioner can have a simpler system, but it must still be written, suitable and operational.

A sole practitioner without staff does not need policies about staff reporting lines or recruitment. However, the practitioner should still consider matters such as:

client acceptance
engagement scope
file completion
confidentiality
conflicts
record keeping
technical competence
complaints
correction of errors
annual review
illness or incapacity.

The TPB specifically recognises that a sole practitioner’s controls may be tailored and scaled to their circumstances.

A simple quality management cycle

A practical system should follow four steps:

Decide — Write down how the practice will meet its obligations.
Do — Follow those procedures in everyday client work.
Check — Review files and processes to see whether the procedures are working.
Improve — Correct problems and update the system when laws, services, staff or risks change.

24. Keep current and prospective clients informed

You must give current and prospective clients certain information in writing, in a way that is prominent, clear and easy to understand.

The information must include:

TPB Register

Tell clients:

that the TPB maintains a public register of tax agents and BAS agents
how the register can be accessed and searched.

Complaints

Tell clients:

how they can make a complaint about a tax agent service
how the TPB complaints process works.

Practitioner and client responsibilities

Provide general information about:

your rights, responsibilities and obligations as a registered practitioner
your obligations to the client
the client’s obligations to you.

A client’s responsibilities may include:

being truthful
providing complete information
providing documents on time
telling you when circumstances change
keeping required records
responding to reasonable questions
reviewing information before approving lodgment.

Registration conditions

Tell clients if your TPB registration is currently subject to conditions.

Prescribed events

Tell clients if any of the following events occurred during the relevant five-year period:

your registration was suspended or terminated by the TPB
you were an undischarged bankrupt or entered external administration
you were convicted of a serious taxation offence
you were convicted of an offence involving fraud or dishonesty
you served, or were sentenced to, imprisonment in Australia for six months or more
you were subject to certain penalties, injunctions or orders connected with promoting a tax exploitation scheme
you were subject to certain penalties, injunctions or orders connected with implementing or promoting a scheme that was materially different from a ruling relied upon
the Federal Court ordered you to pay a civil penalty under the Tax Agent Services Act.

The five-year disclosure requirement does not reach back to events before 1 July 2022 under the transitional rule.

When information must be given

Information about the TPB Register, complaints and general responsibilities must be provided:

when a client engages or re-engages you, or
when you receive a relevant request.

Information about registration conditions or prescribed events must be given:

when a person asks to engage or re-engage you, and
to an existing client who has not already been told, generally within 30 days of the event.

The information must be in writing and presented prominently, clearly and without ambiguity.

A practical way to comply

The Determination gives an example of a practitioner who:

publishes the information on a publicly accessible practice website
includes it in engagement and re-engagement letters
gives clients the TPB’s client information factsheet when they engage or re-engage.

This is not the only way to comply, but it is a practical model for many practices. A practitioner without a website can provide the information through engagement documents and the TPB factsheet.

Important ideas used throughout the Code

“Reasonable care”

Reasonable care means the level of care expected from a competent tax practitioner in the circumstances.

It does not require perfection.

It does require you to:

use professional judgment
ask appropriate questions
investigate warning signs
apply current knowledge
document important work.

What is reasonable depends on the complexity, risk, client and service.

“You know or ought reasonably to know”

You cannot avoid responsibility simply by saying that you did not know something.

The question may also be whether a reasonable tax practitioner with appropriate knowledge, skill and experience should have known it.

Deliberately avoiding information or ignoring obvious warning signs will not normally protect a practitioner.

“Material”

A matter is generally material when it is important enough to influence a decision, result or understanding.

A small spelling mistake may not be material.

Incorrect income, omitted transactions, false deductions or missing information that changes a government decision may be material.

Materiality depends on both the amount and the nature of the matter.

“Document”

Where the Code requires you to make a judgment, ask:

Could I later show what I knew, what I considered, what I decided and why?

Good documentation may include:

emails
file notes
checklists
working papers
advice letters
signed authorities
conflict records
client declarations
review notes.

Documentation does not replace sound professional judgment. It provides evidence that professional judgment was used.

What every small practice should have

A sole practitioner or small practice should ordinarily maintain, at a minimum:

A written quality management manual
A current engagement letter
A TPB client information notice
A client acceptance and identity-check process
A conflict-of-interest process and register
A standard client file structure
A file-completion checklist
A five-year record-retention process
A process for identifying and correcting false statements
A complaints and breach register
A CPE record
Current professional indemnity insurance
Contractor and staff supervision procedures, where relevant
Secure information and technology controls
A business continuity and incapacity plan
A process for reviewing and updating the system.

The documents should match the size, services and risks of the practice. They should not be longer or more complicated than needed, but they must be used consistently.

The practitioner’s final test

Before completing an engagement, ask:

Honesty

Is the information truthful and complete?
Am I comfortable putting my name to this work?

Client interests

Is the advice lawful?
Is it appropriate for this client?
Have I disclosed any conflict?

Confidentiality

Is the client’s information protected?
Do I have authority for any disclosure?

Competence

Do I understand the facts?
Have I applied the correct law?
Do I need specialist help?
Has work performed by others been properly reviewed?

Records

Does the file explain what was done and why?
Have important conversations and advice been recorded?
Could another competent practitioner understand the file?

Practice management

Have I followed the practice’s written procedures?
Have I given the client the required TPB information?
Is there anything that should be corrected, escalated or reported?

When the answer to one of these questions is “no”, pause and deal with the issue before completing or lodging the work.

What happens if the Code is breached?

The TPB may investigate a possible breach.

Depending on the seriousness and circumstances, the TPB may impose sanctions including:

a written caution
an order requiring education, supervision or another action
an order requiring clients to be notified
suspension of registration
termination of registration.

Sanctions other than a caution may also appear on the public TPB Register.

The purpose of the Code is not simply to punish practitioners. It is to protect clients, support ethical practitioners and maintain public confidence in the tax system.

Final message

The combined Code can be understood through six simple rules:

Be honest.
Act lawfully for your client.
Protect information.
Know what you are doing.
Keep evidence of your work.
Run a practice that people can trust.

A practitioner who consistently follows these six rules, supports them with written procedures and keeps proper records will be well placed to meet the Code.

Important notice

This guide provides general information and a plain-English summary of the Code of Professional Conduct. It is not legal advice and does not replace the Tax Agent Services Act 2009, the Tax Agent Services (Code of Professional Conduct) Determination 2024 or official Tax Practitioners Board guidance.

Where there is any difference between this guide and the legislation, the legislation applies.

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