The Hon. Dr Jim Chalmers, Treasurer of Australia; The Hon. Dr Daniel Mulino, Assistant Treasurer and Minister for Financial Services; The Hon. Dr Andrew Leigh, Assistant Minister for Productivity, Competition, Charities and Treasury, Joint Media Release, 2 July 2026
The Albanese Government is legislating tougher sanctions in response to misconduct by tax advisors.
This is all about making our taxation system stronger, driving better behaviour and deterring misconduct.
We’re introducing a stronger sanctions framework including criminal penalties for unregistered tax preparers, new civil penalties for breaches of the Code of Professional Conduct, and increased penalty amounts.
We’re doubling the maximum duration of termination of registration to 10 years and giving the Tax Practitioners Board new powers to issue infringement notice penalties, enter into enforceable voluntary undertakings and impose contingent and interim registration suspensions.
These amendments to the Tax Agent Services Act address issues raised by the PwC tax leaks scandal, and recommendations from an earlier review of the Tax Practitioners Board (TPB).
These reforms are part of a range of actions to increase community confidence in the integrity of the tax system, including the Government’s consultation on the regulation of accounting, auditing and consulting firms in Australia.
The Treasury Laws Amendment (Strengthening Accountability for Tax Adviser Misconduct and other Measures) Bill 2026 also strengthens the foreign resident Capital Gains Tax (CGT) regime, makes improvements to competition policy and supports charitable giving.
The reforms to foreign resident CGT will ensure foreign residents pay a fair share of tax in Australia while providing generous concessions for investments in renewable energy.
The legislation brings Australia’s tax laws into closer alignment with the OECD Model Rules for the taxation of foreign residents and brings the tax treatment of foreign investors into closer alignment with the treatment of Australian residents.
The legislation protects existing revenue by ensuring that taxpayers cannot re-open settled CGT liabilities. These limits will apply from the time the exposure draft legislation was released in April 2026. The wider reforms to foreign resident CGT apply from commencement.
The Bill includes amendments to Australia’s new merger control regime to ensure that it continues to be efficient, transparent and risk-based while protecting the interests of Australian consumers and minimising regulatory burden on industry.
It also implements a recommendation of the Productivity Commission’s Future Foundations for Giving report by renaming ancillary funds as giving funds, to better communicate their purpose in supporting the work of charities.
The Government is strengthening the integrity of Australia’s tax system and improving competition settings and this legislation is an important part of those efforts.
