How does the New Legislation affect
employers & business owners?

Bookkeepers have not been governed by any industry standards such as a minimum education qualification, minimum standards of experience or the need to abide by a code of ethics as they do if they are an AAT Australia member. This has resulted in a number of inexperienced, unqualified practitioners calling themselves bookkeepers.

Given the importance of ensuring financial information upon which BAS and tax returns rely upon is accurate, there has been a call within the industry to make sure bookkeepers are registered with a Board that they are accountable to. Under the new Tax Agents Legislation all bookkeepers wanting to prepare and lodge BAS for a fee must be registered and abide by certain standards to remain registered such as having: a minimum qualification of Certificate IV Financial Services (Accounting) or Financial Services (Bookkeeping), 1400 hours of relevant industry experience; professional indemnity insurance; and abide by the Board’s code of professional conduct.

Also under the new legislation the ATO will waive penalties for genuine error or omission where the BAS is prepared and lodged by a registered bookkeeper. All businesses employing an external bookkeeper should be aware of this change and how it will affect their business. Businesses can avoid taking a compliance risk and engage/employ an AAT Australia member. For more information please email legislation@aat.org.au