Tax

Regulation of tax agents continues to dominate the work of the Australian tax team. CA ANZ has successfully lobbied government to change the Tax Agent Services (Code of Professional Conduct) Determination 2024 significantly. The start date has been delayed. Section 45 has been completely rewritten and now lists a few specific matters to be reported to current and prospective clients, instead of requiring ‘any matter’ to be reported. In addition, the threshold to ‘dob in’ a client has been aligned to the non-compliance with laws and regulations provisions of the Accounting Professional and Ethics standard and only applies where there is substantial harm.

Reporting and assurance

Welcomed by CA ANZ, the Australian Accounting Standards Board’s (AASB) Tier 3 accounting requirements exposure draft proposes simplifications to presentation, recognition and measurement. The move from special purpose reporting to Tier 3 will be the most significant accounting change in a generation for many smaller and medium-sized not-for-profits and charities.

It is essential the AASB strikes the right balance on comparability, transparency and cost to deliver an outcome that will be practical and meaningful for the organisations and their stakeholders. The proposals are on the way to achieving this balance, but there are still complexities and implementation challenges ahead.

CA ANZ is carefully considering the report of the Parliamentary Joint Committee (PJC) inquiry into Ethics and Professional Accountability: Structural Challenges in the Audit, Assurance and Consultancy Industry, tabled in November 2024. Our media release offered a view that is both welcoming and cautionary.

Skills, workforce and migration

CA ANZ is continuing to address the critical shortage of audit and accounting talent. We successfully advocated with Jobs and Skills Australia for the inclusion of auditors and accountants on the 2024 Occupation Shortage List, which informs training, funding and policy decisions.

We also advocated successfully for the inclusion of 10 accounting, audit and finance occupations on the final Core Skills Occupation List, to enable employers to continue to hire workers on temporary skilled visas to fill domestic talent gaps.

CA ANZ has also contributed to revision of the Australian and New Zealand Standards Classification of Occupations (ANZSCO).

Climate-related financial disclosures

Mandatory climate-related disclosures commenced for group 1 entities on 1 January 2025. The AASB has issued the relevant standards for the disclosures, which are closely aligned to the international standards. The disclosures will also be assured by the same auditor as the financial statements, and the Auditing and Assurance Standards Board (AUASB) has published a timeline for the phasing in of assurance.

CA ANZ has produced some guidance notes to help explain key concepts to reporting entities new to climate disclosures. We are also continuing to engage closely with regulators and standard setters to support the development of appropriate guidance to support adoption.

Anti-Money Laundering

Legislation to mandate anti-money laundering and counter-terrorism financing (AML/CTF) requirements for those providing certain designated professional services, including many of our members in practice, has recently passed parliament. There will now be consultation on the accompanying rules and guidance.

Together with other accounting bodies, we are engaging with the Australian Transaction Reports and Analysis Centre (AUSTRAC) through industry advisory forums to advocate for the rules and guidance to recognise the existing professional obligations of our members. We are also advocating for complementary legislation to be enacted, such as the establishment of a beneficial ownership register.

Federal Budget and Election

CA ANZ’s next pre-budget submission will contain our ideas and priorities for the federal budget and the election. While the outlook for the next federal election is unclear, housing and cost of living are key issues that will need to be addressed.