Funding for integrity within the Australian tax system

In a move intended to reinforce the integrity and effectiveness of Australia’s tax system, the Government has announced a plan to enhance compliance and regulation within the tax profession.

Strengthening compliance and oversight

The Government is strengthening the Tax Practitioners Board (TPB) with sanction capabilities that will be supported by funding to allow the TPB to execute targeted compliance actions focused on high-risk tax practitioners. Over the four-year period starting from 1 July 2025, the TPB will look to intensify its oversights, specifically cracking down on unlawful tax advice and misconduct.

Financial impacts

This measure is projected to increase receipts by $47 million and payments by $27.4 million over five years from 1 July 2025. This funding allocation is set to rise sharply from 1 July 2026 onwards, reflecting the compliance activity as follows:

• Receipts grow from $2.1 million in 2026 to $28.7 million in 2028
• Related payments to the ATO will rise from $5.6 million in 2025 to $8 million by 2028.

Supporting the tax profession

This reform also focuses on sustainability within the tax profession. Measures will be introduced to ease re-entry for both tax agents and BAS agents who return after career breaks, supporting workforce continuity.

Response to recent controversies

Additionally, this reform forms part of the Government’s broader response to public concerns about tax practitioners’ ethical practices. This initiative also draws from recommendations from the 2019 Independent Review of the Tax Practitioners Board, reinforcing increased regulations and improved standards.