Important Update: New Engagement Letters & Additional Compliance Obligations
Recent legislative reforms to the Tax Agent Services Act 2009 (TASA) now require all clients to acknowledge updated engagement terms before we can continue assisting with your tax affairs.
These updates stem from a 2019 independent review into the Tax Practitioners Board (TPB) and have been enacted by the government to enhance the Code of Professional Conduct, reinforcing obligations around recordkeeping, communication, compliance, and now, additional governance around “disqualified entities.”
What’s Changed?
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From 1 January 2024, the Minister is empowered to impose new obligations for tax practitioners via legislative instruments.
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On 2 July 2024, the Tax Agent Services (Code of Professional Conduct) Determination 2024 was registered. Amendments were later made on 8 October 2024 to provide further clarity following public consultation.
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New Code Items 15 and 16 came into effect 1 January 2024, addressing risks of engaging with so-called disqualified entities—these rules prohibit employing or entering into certain arrangements with individuals or entities the TPB considers unsuitable to provide tax services.
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These “disqualified entity” rules require practitioners to conduct reasonable checks and, if necessary, seek TPB approval before engaging such entities.
You can access a helpful summary and practical checklist from NTAA here: [NTAA Disqualified Entity Checklist & Summary]
What This Means for You
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1 on 1 Tax will provide you with a simple one-page engagement letter at the time of completing your tax return in our office.
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This letter includes a prompt to visit our website to review the full engagement terms, your obligations, and details about the updated Code—including the new requirements on disqualified entities.
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For those interested in more detail up front, the comprehensive versions are available below:
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Shortform Engagement Letter – for individuals not in business – Download Now
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Standard Engagement Letter – for businesses, groups, and entities – Download Now
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These documents cover:
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Scope of services
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Your client obligations
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Our obligations to you, the ATO, and the TPB
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Administrative and compliance requirements, including disqualified-entity safeguards
Why It Matters
At 1 on 1 Tax, we are committed to maintaining the highest professional and ethical standards. These changes are designed to protect both you and our practice—and ensure we all meet the updated legal and regulatory expectations. We’ll continue to keep you informed of any further developments that may impact your obligations or our service process.