BAS Agent Law

Under the current Income Tax Act (ITAA 1936) s251L legislation (referred to as the "current law") a bookkeeper may not take a fee for giving GST advice or lodging a BAS return unless they are working under the direction of a Registered Tax Agent or are a member of one of the seven (7) recognised professional accounting associations (referred to as the "RPA's") .

Under the new Tax Agent Services Legislation as detailed in the Revised Exposure Draft (referred to as the "new law") there is provision for a person to register as a BAS Agent providing they are a 'fit and proper person', hold at least a Certificate IV Financial Services (Bookkeeping) and have had at least 1400 hours of relevant experience in the past three years.

The new law includes transitional provisions that provide a two-year transitional period for individuals who are currently legally providing BAS services under the current law, and those that currently do not need to be registered, but who will be required to register under the new law.

In order to determine what options you have we suggest that you go through the following questions which have been written like 'decision boxes' on a flowchart in that each question has a YES or NO answer. If your answer is NO go onto the next step and read the NEXT question. If your answer is YES then read the answer to the RIGHT of the question and if directed go on to the specified step.

A PDF copy of all of the parts of the new law can be viewed and/or downloaded in their entirety by clicking here

Step

Question

Answer if Yes

if No GoTo step 2

Do you wish to work as an employed bookkeeper or do you want to be a contract bookkeeper and work for yourself running your own bookkeeping business?

Yes: An employed bookkeeper does not need any qualifications and can do any type of BAS work as the legal responsibility rests with the business owner.

However we recommend that you become a qualified bookkeeper by taking the Certificate IV in Financial Services (Bookkeeping) as it will not only increase your employment chances but will also ensure that you are competent in your work.

if No GoTo step 3

Are you currently a Registered Tax Agent?

Yes: A Registered Tax Agent can perform all BAS services under both the current and new laws. No further action is required.

if No GoTo step 4

Are you currently a member of one of following recognised professional accounting associations (RPA's)?

CPA Australia (CPA)
Institute of Chartered Accountants in Australia (ICAA)
National Institute of Accountants (NIA)
Association of Taxation & Management Accountants (ATMA)
Taxation Institute of Australia (TIA)
Chartered Institute of Management Accountants (CIMA)
Association of Chartered Certified Accountants (ACCA)

Yes: You can perform all BAS services under the current law but in order to provide such services under the new law you will have to register as a BAS Agent. According to Part 2, Division 1 of the Tax Agent Services Regulations 2008 revised exposure draft you can register as a BAS Agent under the new law if you are an individual who:

(a) is a voting member of an RPA; and

(b) has undertaken at least 1400 hours of relevant experience in the preceding 3 years.

However be aware that the Revised Exposure Draft defines "Relevant experience" as:

(a) work by an individual as a tax agent registered under the
Act or a BAS agent registered under the Act; or

(b) work by an individual under the supervision and control of
a tax agent registered under the Act or a BAS agent
registered under the Act; or

in the course of which the individual’s work has included substantial involvement in one or more of the kinds of BAS services described in section 90-10 of the Act.

GoTo Step 9.8.

if No GoTo step 5

Have you recently been awarded a degree from an Australian university with an accounting major? . . . or

Have you recently been awarded an Advanced Diploma in Accounting from an Australian RTO or TAFE?

Please note that if you only hold a Diploma in Accounting you must up-skill to an Advanced Diploma in Accounting to take this option.

Yes: You can join either the:

• National Institute of Accountants (NIA) or the

• Association of Taxation and Management Accountants (ATMA)

as an associate member if you hold an Advanced Diploma in Accounting; or if you hold a University Degree majoring in Accounting you can join either association as a full member, provided you meet their experience criteria.

As a member of either the ATMA or NIA a bookkeeper can perform all BAS services under the current law.

However please read the answer in step 3 (above) as you will still have to undertake at least 1400 hours of relevant experience in order to provide such services under the new law.

GoTo Step 9.8.

if No GoTo step 6

Have you recently been awarded a Diploma in Accounting or a Certificate IV in Financial Services (Accounting) from an Australian RTO or TAFE?

Yes: Part 2 Division 1 of the Tax Agent Services Regulations 2008 revised exposure draft details the following requirements for registration as a BAS Agent under the new law:

Accounting qualifications

section 201 A requirement is that the individual:

(a) has been awarded at least a Certificate IV Financial Services (Accounting), or a Certificate IV Financial Services (Bookkeeping, from:

(i) a registered training organisation; or

(ii) an equivalent institution;

that required the successful completion of a course in basic GST/BAS taxation principles; and

(b) has undertaken at least 1400 hours of relevant experience in the preceding 3 years.

To meet this requirement you must hold the bookkeeping unit NSBKPG404A - Carry out Business Activity and Instalment Activity Statement tasks in addition to your Diploma or Cert IV Accounting.

Please call BIA on 1300 729 844 if you wish to study this unit.

Once obtained you can GoTo Step 9.1.

if No GoTo step 7

Have you recently been awarded a Certificate IV in Financial Services (Bookkeeping) from an Australian RTO or TAFE?

Yes: Great! You meet all of the Accounting Qualification requirements of Part 2 Division 1 of the Tax Agent Services Regulations 2008 revised exposure draft (see Step 5 above).

You can now GoTo Step 7

if No GoTo step 9

Are you currently running a contract Bookkeeping business taking a fee for providing BAS services?

Note: Section 90-10 of the Tax Agent Services Bill 2008 defines the “Meaning of BAS service” to be a tax agent service:

a) that relates to:

• ascertaining the liabilities, obligations or entitlements of an entity that arise, or could arise, under a *BAS provision; or

• advising an entity about the liabilities, obligations or entitlements of the entity or another entity that arise, or could arise, under a BAS provision; or

• representing an entity in their dealings with the Commissioner in relation to a BAS provision [e.g. lodging a BAS return]; and

b) that is provided in circumstances where the entity can reasonably be expected to rely on the service.

Yes:

You can now GoTo Step 8

if No GoTo step 9

Are you currently working under the direction of a Registered Tax Agent or using the BAS Wizard Program offered by ICB and ABN (who are also Registered Tax Agents)?

Note: The registered tax agent(s) that you work under must have a risk-based quality assurance process in place to review the BAS services you provide for accuracy and completeness. Refer to the guidelines recommended by the ATO.

Yes:

You can now GoTo Step 9.4

You now need to take the following course of action:

Unless you already hold an equal or higher qualification obtain a Certificate IV in Financial Services (Bookkeeping) from the Bookkeeping Institute of Australia or another Registered Training Organisation.
Join the Australian Bookkeepers Network (ABN). Note — the BIA Start Your Own Bookkeeping Business program includes one whole years FREE membership to ABN worth $420.
As an ABN member you can sign on to ABN BAS Wizard Program so that you are now legally working under the direction of a Registered Tax Agent (ABN). ABN acts as the registered tax agent and assumes responsibility for a quality assurance framework. Bookkeepers operate under the ABN quality assurance framework and are then “working under our direction” for the purposes of Section 251L.
Visit the "BAS Service Provider self assessment tool" on the ATO website at http://ato.gov.au/businesses/content.asp?doc=/content/70651.htm&page=4#P29_3488 and ensure that you meet the criteria under the current law.
Complete the "Working under the direction of a registered tax agent" assessment tool at http://ato.gov.au/businesses/content.asp?doc=/content/70651.htm&page=7#P83_7473
Lodge BAS returns by using the ATO Electronic commerce interface (ECI) - refer to the ATO's "Guide to online services for BAS service providers: Lodging, reporting and interacting with us" at http://www.ato.gov.au/onlineservices/content.asp?doc=/content/71504.htm&mnu=34949&mfp=001/010
This action should entitle you to to be "taken to be a registered BAS agent within the meaning of the new law for the 2 year period" from commencement date of the new law as detailed in Schedule 2 Part 2 of the Tax Agent Services (Consequential and Transitional Provisions) Bill 2008.
You then have two years during which you need to build up 1400 hours of relevant experience (see the definition in step 3) so that you are eligible for re-registration at the end of the transition period. Make sure you start keeping a log of your bookkeeping and BAS activities right away.

A PDF copy of all of the parts of the new law can be viewed and/or downloaded in their entirety by clicking here