ABN BAS

ABN BAS will be another future offering of ABN that will assist bookkeepers once the new BAS Agent laws take effect, which is expected to be some time in 2010.

In short, ABN BAS will provide a valid pathway for bookkeepers who are unwilling or unable to seek BAS Agent registration in their own right.

This page provides a brief background on the current and proposed BAS laws before painting a picture of the future role that ABN BAS will take.

Existing Section 251L laws

ABN's BAS Wizard Partner Program has been in place since 2001 and is used by over 500 of ABN's members Australia wide. It enables bookkeepers to legally comply with the existing Section 251L laws, qualify for transitional relief under the BAS Agent legislation and meet the experience requirements for registration as a BAS agent. Click here for further information.

Proposed BAS Agent laws

The proposed BAS Agent laws are contained within the Tax Agent Services Act 2009 which recieved Royal Assent on 26 March 2009. It calls for the introduction of a national Tax Practitioners Board who, among other things, will oversee and regulate the supply of BAS Services to the public. Only bookkeepers who have applied to the Board for registration as a BAS Agent will be permitted to render BAS services to their clients.

BAS services have been more broadly defined and capture the majority of services provided by most bookkeepers. Importantly, a bookkeeper may be deemed to be providing a BAS Service even if, under current law, that service did not amount to being a BAS Service. The legislation imposes a range of civil penalties ranging from $5,500 to $137,500 (per offence) for illegally providing, representing that you provide, or advertising that you provide, BAS services.

In order to become registered as a BAS Agent, a bookkeeper will need to satisfy the Board that they meet a number of criteria. Firstly, the applicant must be a "fit and proper person". Secondly, the applicant must satisfy an educational criterion, which at a minimum requires the attainment of a Certificate IV Financial Services (Accounting) or Certificate IV Financial Services (Bookkeeping). Thirdly, the applicant must demonstrate some 1400 hours of "relevant experience" in BAS preparation in the past three years.

Transitional relief, which relies on a number of key conditions being met, provides an opportunity for bookkeepers who are already providing exempt BAS services under the existing s.251L to continue to do so for up to two years after the transition date, subject to notifying the Board. It also provides an avenue to attain a BAS Agent registration by meeting fewer requirements than would ordinarily be the case. The Transition Regulations are, however, still to be finalised.

Likely Impact of the New BAS Agent Laws

When the BAS Agent laws do take effect, some time in 2010, it is likely to polarise the bookkeeping industry and will create two distinct strata of bookkeepers. One stratum will comprise those who can legally provide BAS services to the public; the other will comprise those who cannot. This is expected to lead to differences across the bookkeeping industry in terms of what services can be provided and at what cost. While it will likely result in some industry flight or, at the very least, the reshaping of some bookkeeper's business models, it may also attract new entrants to new opportunities in what will be a forever changed industry.

However, when the new BAS Agent laws commence, not all bookkeepers will necessarily be seeking BAS Agent registration. This may be because:

  • They do not wish to accept the additional liability that comes with being a BAS Agent;
  • They do not wish to incur the additional costs associated with being a BAS Agent such as registration, insurance and continuing professional development;
  • They do not wish to attain a Certificate IV Financial Services (Accounting) or Certificate IV Financial Services (Bookkeeping);
  • They may not be able to meet the experience requirements due to their part-time status or the type of bookkeeping ;
  • They may not be able to meet the experience requirements due to being new to the industry;
  • They may fail the "fit and proper" person criterion;
  • They may be contemplating a future change of career, or retirement, and thus may not inclined to go to great lengths to seek out a BAS Agent registration.

For these bookkeepers, they will be faced with the choice of either:

  1. No longer providing bookkeeping services to those clients requiring BAS preparation;
  2. Providing bookkeeping services other than BAS preparation, and sending the client to their accountant to have their BAS prepared;
  3. Providing bookkeeping services other than BAS preparation, and sending the client to another bookkeeper (who is a BAS Agent) to have their BAS prepared;

In many cases, all three of these options will be unappealing to bookkeepers.

The Future Role of ABN BAS

ABN BAS will itself become a BAS Agent. Bookkeepers will be able to prepare BASs and will be able to submit these BASs to ABN BAS for checking. The bookkeeper will maintain the relationship with the client, however the legal burden stemming from the client's reliance is shifted from the bookkeeper to ABN BAS as the BAS Agent.

It is likely that the approach taken, which will be centred around the exercise of supervision and control, will be modelled on ABN's existing BAS Wizard Partner Program although there will be a greater rigour than is currently required by Section 251L. It is not yet clear whether the bookkeeper or ABN BAS will be the lodging party.

ABN BAS will provide a valid means by which bookkeepers can continue to offer BAS Services if they are unwilling or unable to register as BAS Agents in their own right.

If you are not already an ABN Member but would like to be kept apprised on this exciting development, please click here to launch an email that will be directed to ABN Director, Darren Hagarty.