House of Representatives

Supplementary Explanatory Memorandum

Circulated By the Authority of the Treasurer, the Hon Wayne Swan MP

Explanation of amendment

1.1 The amendment ensures that the Tax Practitioners Board (the Board) is able to register all entities that have transitioned into the new regime as registered BAS agents under item 5 for a period of at least 12 months if they seek a further period of registration without having the necessary qualifications (as permitted under item 14).

1.2 Item 5 allows entities that have been providing BAS services before commencement of the new regime to be taken to be BAS agents for the period of two years from commencement.

1.3 Under subitem 14(2) the Board can only impose the 12 month minimum registration period on those entities that are, at the time of seeking to rely on item 14, taken to be a registered BAS agent by virtue of item 5. It would not extend to those entities who had been registered under item 5 but whose registration had subsequently lapsed. Consequently, entities that allow their registration to lapse could get up to a further three years minimum to practice, without the necessary qualifications. This result is unintended.

1.4 This amendment will ensure that entities accessing the transitional provisions do not gain an unintended advantage over other entities by allowing their registration to lapse after the end of the two-year period and then reapplying for registration shortly thereafter.