Mistakes, Penalties and Official Sources
Unregistered tax agents and BAS preparers: the risks and how to check the TPB register
Why using an unregistered person to prepare your tax return or BAS for a fee is risky in Australia, how to check the Tax Practitioners Board register, red flags and what to do if it happens.
In Australia, a person who charges a fee to prepare your income tax return, give tax advice, or prepare and lodge your BAS must be registered with the Tax Practitioners Board (TPB) as a tax agent or BAS agent. Using someone who is not registered means you lose the protections that come with registration: the Code of Professional Conduct, professional indemnity insurance requirements, competence standards and a regulator you can complain to. You also remain responsible for whatever they lodge in your name. Checking takes a minute on the free TPB register, so do it before you pay anyone.
This guide is part of the accounting mistakes overview.
What the law says
The Tax Agent Services Act 2009 sets up the registration system. It includes civil penalty provisions for providing tax agent services or BAS services for a fee while unregistered, for advertising such services when unregistered, and for representing yourself as a registered agent when you are not. The TPB can investigate and apply to the Federal Court for penalties and injunctions.
Registered agents must comply with the Code of Professional Conduct in the Act. The Code requires, among other things, honesty and integrity, acting in the client's best interests, competence, reasonable care, confidentiality, and managing conflicts of interest. The Code's obligations were expanded by a determination made in 2024, which added requirements such as upholding the integrity of the tax system and keeping proper client records. Check the TPB's guidance for the current obligations.
Why it matters to a small business
| With a registered agent | With an unregistered preparer |
|---|---|
| Must meet qualification, experience and fit and proper person tests | No checks |
| Must hold professional indemnity insurance meeting TPB requirements | Possibly none; little recourse for errors |
| Bound by the Code of Professional Conduct | No professional standard enforced by the TPB |
| Access to agent lodgement programs, which may give later due dates | Usually lodges as you, at standard dates, or uses your credentials |
| Safe harbour from some penalties if the agent caused the problem | Generally no safe harbour |
| You can complain to the TPB about conduct | The TPB can act against the person, but not resolve your losses |
| Fees for managing tax affairs are generally deductible | Deductibility may be affected |
Common patterns to watch for
- The friendly bookkeeper who "just lodges" the BAS. An unregistered bookkeeper may do your data entry, but if they prepare and lodge the BAS for a fee, that is a BAS service requiring registration. See bookkeeper vs BAS agent vs tax agent.
- Refund promises. Someone offering a guaranteed refund amount before seeing your records.
- Login sharing. Asking for your myGov or myID credentials instead of being nominated as your agent through the ATO's systems.
- Refunds paid to their account. A registered agent may use a trust account in some arrangements, but an unregistered person directing your refund to their account is a serious warning sign.
- No written terms. No engagement letter, no ABN on the invoice, cash only.
- Overseas or online services that prepare Australian returns but cannot show a TPB registration.
How to check the TPB register
- Go to the TPB website and open the public register search.
- Search by the individual's name, the company or partnership name, or the registration number.
- Check the registration type (tax agent or BAS agent), that it is current, and whether there are conditions or recorded sanctions.
- If the person works at a firm, check whether they are individually registered or working under the supervision of a registered agent at that firm.
Write the registration number on your engagement letter or file. The selection checklist includes this step.
If you have used an unregistered preparer
- Get copies of everything lodged in your name. You can view lodged returns and BAS through ATO online services.
- Have a registered tax agent review recent lodgements. Errors can be corrected by amendment or voluntary disclosure; see ATO penalties.
- Change passwords for myGov, myID, banking and software if you shared credentials.
- Report the person to the TPB. The TPB accepts tip-offs about unregistered preparers.
- Tell the ATO if you think your identity or credentials have been misused.
Expect to pay for the review. It is usually much cheaper than an ATO audit years later. Compare the cost with the estimates in the fee estimator.
Unregistered does not always mean illegal
Some people can help with tax matters without registration because the Act exempts them or because they are not providing the service for a fee. Examples can include employees preparing their employer's BAS as part of their job, or someone working under the supervision of a registered agent. Lawyers giving legal advice on tax law are also generally outside the registration requirement for that advice. If you are unsure, ask the person to explain how they are covered and check with the TPB.
Frequently asked questions
Can my accountant's assistant do my return?
Yes, if they work under the supervision and control of a registered tax agent who takes responsibility for the work. Ask who the supervising agent is.
Is a member of CPA Australia automatically registered?
No. Professional body membership and TPB registration are separate. Check the register.
What penalties can an unregistered preparer face?
Civil penalties under the Tax Agent Services Act, and in serious cases criminal consequences under other laws. The TPB publishes outcomes of its enforcement actions.
Will I be penalised for using one?
You remain responsible for your own lodgements. Penalties depend on the errors and your conduct; correcting them voluntarily usually helps.
Sources and where to check
- Tax Practitioners Board — public register, Code of Professional Conduct guidance and how to report an unregistered preparer
- Federal Register of Legislation — Tax Agent Services Act 2009
- Australian Taxation Office — nominating an agent, reporting misuse of your identity
- Scamwatch — tax-related scams
