New Rules for Bookkeepers coming Very Soon

New Definition of “Tax Practitioner”

Under proposed new legislation, a wider definition of “tax practitioner” has been formulated to encompass bookkeepers offering BAS services. BAS Service Providers will be governed in the same way as tax agents, but will provide a limited range of services relating to BAS.New Definition of “BAS Services” Will Capture Most Bookkeepers BAS services have been more stringently defined and this definition will capture the majority of services provided by most contract or self-employed bookkeepers. Payroll services are also caught as the definition extends to matters involving PAYG Withholding.

Example (taken from Treasury’s Explanatory Memorandum)

Penny operates a mobile bookkeeping service for clients. She charges a fee for entering and coding clients’ transactions into a commercial accounting programme. Penny produces a variety of reports, including reports that assist clients in determining their BAS liability.

Penny’s clients rely on these reports to complete their BAS. The act of coding transactions into the accounting software constitutes interpretation or application of a BAS provision.Similarly, providing reports constitutes ascertaining liabilities or entitlements under a BAS provision. In undertaking either function, Penny has provided a service that her client can expect to rely on and, as such, she would be required to register as a BAS Service Provider.

Registration of BAS Service Providers
Bookkeepers who meet a ‘fit and proper person’ test, as well as stringent education
and experience requirements will be able to register as a BAS Service Provider.