Accounting bodies unite over ALP’s ‘rort’ accusation

The Australian Labor Party (ALP) has failed to understand and respect the role of accountants, according to the Institute of Public Accountants (IPA).

In a sign that the Federal Opposition’s proposal to reduce the tax deductibility of accounting advice has served to united the major accounting bodies, the IPA has warned that by declaring tax deductions for accounting fees as a rort, “Labor has not only attacked the accounting profession, it has attacked millions of hard working taxpayers who are doing the right thing in paying their fair share of taxation”.

Further the IPA said it had received a letter from the Prime Minister, Scott Morrison and the Treasurer, Josh Frydenberg expressing concerns over the proposed Labor move which it was disseminating to its members.

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“To be clear, we support the fact that all Australians should pay their due share of tax but they should also be able to access the appropriate tax deductions available to them to ensure they are not overpaying,” IPA chief executive, Andrew Conway said.

“Labor’s views on this matter shows a lack of understanding about, and respect for, what it takes for an accountant to appropriately manage an individual’s tax affairs.  It is not always a matter of a simple tax return; there may be many other factors associated with our highly complex tax system,” he said.

Conway said that for some clients there could be considerable time spent in areas of tax audit, litigation, dispute and other interactions with the Australian Taxation Office and that further complexities existed with the formation of partnerships, trusts, property acquisitions and disposals.

“Simply put, genuine taxpayers are not rorters,” he said. “They should be seeking the right tax advice from their trusted adviser, the accountant, to make sure they continue to claim their rights and pay the correct amount of tax.”

“Labor’s proposed measure is genuinely and obviously a revenue grab. If you cap it at $3,000 the likelihood of a person engaging appropriate tax advice is reduced.  This could have disastrous impacts on the community.”

 

 




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Of course the IPA, CPA and CAANZ and their accountant members aren't conflicted at all are they.

what will be really funny is if FASEA gives all three of them a negative assessment and 0 credit for prior studies. although IPA may get 1 or 2 as their members have to complete an AQF 9 rated qualification being a master of commerce.

however, one might argue what relevance a master of commerce with a concentration in accounting have for financial planning is probably the question FASEA will raise

what a lot of people don't know is that all three bodies have accountants who have been grandfathered, and fair enough too but many don't have a degree and have a current AR status

they are gonna find out soon ha ha, then they will really hit the roof when they have to do 7 subjects of a grad dip to remain licensed ..... boom

Des Tutu, I guess it's the same as a Union member getting their free tickets to the Corporate box at sporting events.

The accountants were very happy to side with the socialists when they began their attacks on financial planners and now that financial planners are destroyed the accountants are the next target. Socialists use rhetoric to demonizes their target as a way to grant themselves moral superiority so that they can justify their oppressive equal outcome legislation agenda.

Accounting is a trade, not a profession.

The term 'accountant' is not protected by law and anyone can use the term (it would be protected if it was valued by the community). There are zero education, ethics and experience requirements when using the term 'Accountant'.

If you instead want to use an actual protected term (under law), such as 'qualified accountant' or 'registered tax agent', both of these terms have a minimum education pathway of a DIPLOMA. What a joke! This 'trade' is a product of bureaucracy (mandated tax returns).

Labor wouldn't have proposed a cap on accounting deductions if this was an ethical trade. Instead these 'tradesman' cannot be trusted, often bloating the Federal Budget with dodgy deductions. Just last week, another 'dodgy accountant' was banned for having clients claim their household pet as a guard dog!

Accounting needs to undergo a FASEA type reform (mandating certain minimum requirements for all - not just those who choose join a particular lobby group). It is also time to remove the DIPLOMA minimum education pathway to become a 'qualified accountant' or 'registered tax agent'. As it currently stands, accounting has the lowest education entry requirements of all 'white collar jobs'.

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