Complaints about an accountant or tax agent: where to go and what each body can do

Start with the firm: put the complaint in writing, refer to the engagement letter, and ask for a response by a date. If that fails, where you go next depends on what kind of problem it is. Concerns about a registered agent's conduct, such as dishonesty, incompetence or breach of confidentiality, go to the Tax Practitioners Board (TPB). If the practitioner belongs to CPA Australia, Chartered Accountants ANZ or the Institute of Public Accountants, that body has its own complaints and disciplinary process. Fee disputes and contract disputes between small businesses and their providers can be taken to the Australian Small Business and Family Enterprise Ombudsman (ASBFEO) or your state or territory small business commissioner for help and mediation, and ultimately to a tribunal or court. Complaints about the ATO itself go to the Inspector-General of Taxation and Taxation Ombudsman.

This guide is part of the accounting mistakes overview.

Which body handles what

Step 1: Complain to the firm

Write a short, factual complaint:

• What was agreed (quote the engagement letter).
• What happened, with dates.
• The loss or problem it caused (penalty notices, extra fees).
• What you want: a fee reduction, correction at no cost, release of records, an apology.
• A reasonable deadline for a reply, for example 14 days.

Many firms have a complaints process and professional indemnity insurance. If the error caused a financial loss, ask the firm to notify its insurer. See the engagement letter guide for the clauses that help here.

Step 2: The Tax Practitioners Board

The TPB regulates registered tax agents and BAS agents under the Tax Agent Services Act 2009. It can investigate breaches of the Code of Professional Conduct and impose sanctions such as a written caution, an order to undertake education, suspension or termination of registration, and it can seek civil penalties in court. It also deals with unregistered preparers; see unregistered agent risks.

What the TPB generally does not do is resolve fee disputes or order compensation for you. Use it for conduct, and other avenues for money.

Step 3: The professional body

If the accountant is a member of a professional body, you can complain to that body. Professional bodies set ethical and professional standards for members, generally based on the APES standards issued by the Accounting Professional and Ethical Standards Board, and can discipline members. Some also have processes for fee disputes. Check the member's status on the body's website.

Step 4: Small business dispute help

• ASBFEO is a Commonwealth body that assists small businesses with disputes with other businesses and government agencies, and can refer to alternative dispute resolution.
• State and territory small business commissioners or equivalent bodies offer information and low-cost mediation for business-to-business disputes, including in New South Wales, Victoria, Queensland, South Australia and Western Australia. Names and services differ between jurisdictions; search for your state's small business commissioner or agency.

Mediation is often the cheapest way to settle a fee dispute.

Step 5: Tribunals and courts

If mediation fails, a small claim may be possible in your state's tribunal or local court small claims division, depending on the amount and the jurisdiction. Larger claims for professional negligence need legal advice. If the firm belongs to a professional standards scheme, its liability may be capped.

Worked example (illustrative)

A firm quoted $2,800 for a company's annual work and invoiced $4,600 without warning, citing clean-up. The engagement letter required a quote for extra work over $300.

1. The owner writes to the firm quoting the clause and offers to pay $2,800 plus a reasonable amount for documented clean-up.
2. The firm does not reply in 14 days.
3. The owner contacts the state small business commissioner, which arranges mediation; the parties settle at $3,300.

Because the letter had the clause, the owner had a clear basis. Without it, the dispute would have been harder.

Complaints about the ATO

If your problem is with the ATO, for example a penalty you think is wrong or delays in processing, first use the ATO's complaints process. If unresolved, the Inspector-General of Taxation and Taxation Ombudsman can investigate complaints about ATO and TPB administration. Penalty remission requests are made to the ATO; see ATO penalties.

Frequently asked questions

Can the TPB get my money back?

Generally no. The TPB deals with conduct and registration. Compensation is through negotiation, the firm's insurer, mediation or the courts.

My bookkeeper is not registered. Who can I complain to?

If they did work that needs registration, report them to the TPB. For fee or contract disputes, use small business dispute bodies or a tribunal. A bookkeeping association may also accept complaints about members.

Is there a time limit?

Different bodies have different time limits, and legal claims are subject to limitation periods. Act promptly.

Should I stop paying the invoice?

Pay any undisputed part and dispute the rest in writing. Refusing to pay everything can complicate the release of records.

Sources and where to check

• Tax Practitioners Board — complaints about registered agents and unregistered preparers
• Australian Small Business and Family Enterprise Ombudsman — dispute assistance for small businesses
• Inspector-General of Taxation and Taxation Ombudsman — complaints about the ATO and TPB
• Office of the Australian Information Commissioner — privacy complaints
• Accounting Professional and Ethical Standards Board — professional standards for members of accounting bodies
• CPA Australia, Chartered Accountants ANZ, Institute of Public Accountants — member complaints