TAX AGENT & ACCOUNTNAT
When it comes to professional help, it’s clear that accountants and tax agents handle thousands of individual tax returns each year. Their experience and expertise make them more adept at this task than the average individual. If you’re considering preparing your tax return on your own, it’s crucial to ensure you’re well-versed in all aspects, including allowable deductions and record-keeping requirements. However, the benefits of professional assistance, such as ensuring accuracy and maximising your refund, should not be overlooked.
DIFFERENCES
Let’s clear up the jargon first. No doubt you have heard the terms tax agent and accountant in the past, and like most everyday people who are not in the industry, you are more than likely wondering what the difference is between the two. Tax agents are professionals who hold relevant licences issued by the Tax Practitioners Board, which allows them to process and lodge your tax returns on your behalf. In most cases, they are not university-qualified, and their speciality is exactly what the title says: Tax Agents. On the flip side, qualified accountants are your strategists and go to people for generally more complex matters than just lodging your return. They are considered trusted advisors and respected business partners for the right reasons. By definition, a qualified accountant is a person who is a member of either CA, CPA & IPA, being the only three regulatory bodies for accountants in Australia. In order to achieve membership status, prospective accountants would typically need to complete additional training and study requirements in addition to their university degree.
Section 88B paragraph (2) of the Corporations Act 2001 empowers ASIC to declare that all members of a specified professional body, or all persons in a specified class of members of a specified professional body, are qualified accountants for the purposes of the Corporations Act.
On 28 September 2016, under Section 88B of the Corporations Act, ASIC made the legislative instrument the ‘ASIC Corporations (Qualified Accountant) Instrument 2016 / 786’ to define who is a Qualified Accountant. It states:
5. All persons in the following classes of members of the following professional bodies are Qualified Accountants for the purposes of the Act:
(a) any member of CPA Australia (CPAA) who:
(i) is entitled to use the post-nominals “CPA” or “FCPA”; (ii) is subject to CPAA’s continuing professional education requirements; and (iii) at or about the time of the member’s most recent renewal of membership, has confirmed in writing to CPAA that he or she complies with CPAA’s continuing professional education requirements;
(b) any member of Chartered Accountants Australia and New Zealand (CA ANZ) who:
(i) is entitled to use the post-nominals “CA”, “ACA” or “FCA”; (ii) is subject to CA ANZ’s continuing professional education requirements; and (iii) at or about the time of the member’s most recent renewal of membership, has confirmed in writing to CA ANZ that he or she complies with CA ANZ’s continuing professional education requirements;
(c) any member of the Institute of Public Accountants (IPA) who:
(i) is entitled to use the post-nominals “AIPA”, “MIPA”, or “FIPA”; and (ii) is subject to the IPA’s continuing professional education requirements; and (iii) at or about the time of the member’s most recent renewal of membership, has confirmed in writing to the IPA that he or she complies with the IPA’s continuing professional education requirements;
Are accountants registered tax agents? The simple answer is yes; accountants can be and, in most cases, are registered tax agents in addition to their qualified accountant title; however, the reciprocal arrangement would not apply to tax agents who do not have accounting qualifications.
When it comes to managing your business finances, it’s crucial to choose the right professional to help you achieve your goals. While tax agents can handle payroll and tax returns, qualified accountants offer much more than that. With their expertise and strategic approach, they work with you to analyse financial reports and identify areas of improvement. By suggesting amendments to your financial strategy, they can help you create further wealth and long-term security for your business. So if you want to maximise your potential for success, consider working with a qualified accountant who can help you make informed financial decisions.
Both, tax agents and accountants are experts in the own field and using one or the other would depend on your circumstances and business as well as individual needs.
Please keep in mind that this post is intended to serve as a guide only and does not consider your individual circumstances. It does not constitute accounting or legal advice. If you’re interested in optimising your individual tax refund, you can contact Ivan, a qualified accountant and registered tax agent, on 0449252750.
Start your individual tax return lodgement process by completing our FORM.