The TPB's penalty powers just got bigger. Here's what every tax agent needs to know.

On 10 September 2026, the Senate passed the Treasury Laws Amendment (Strengthening Accountability for Tax Adviser Misconduct and Other Measures) Bill 2026. Schedule 1 of the Bill expands the Tax Practitioners Board's regulatory powers, and it is Stage 3 of the Government's response to the PwC tax leaks matter announced on 6 August 2023. It also implements some recommendations from the 2019 Independent Review of the TPB. The Bill has passed both Houses and awaits Royal Assent.

Seven things every tax agent needs to know.

1. Individual civil penalty maximums have gone up tenfold

The maximum civil penalty for an individual under the Tax Agent Services Act has risen from $91,000 to $910,000. That increase applies across every existing civil penalty provision, not only the new ones added by this Bill. The steepest increases apply to unregistered advertising provisions.

2. The TPB can now suspend a registration for 90 days without an investigation

A new interim suspension power lets the TPB immediately suspend an agent's registration for up to 90 days without commencing or finalising an investigation. Two conditions apply. The TPB must be satisfied on reasonable grounds that the practitioner has engaged in conduct that may constitute an offence against a taxation law or a contravention of a civil penalty provision, and there must be a significant risk of material loss to clients, Commonwealth revenue, or the integrity of the tax system.

The natural justice hearing rule is expressly excluded for the initial decision. Extensions beyond 90 days require an investigation to have commenced. Any extension is reviewable by the Administrative Review Tribunal.

3. A separate power lets the TPB pause, rather than terminate, in less urgent cases

A new contingent suspension power lets the TPB suspend an agent's registration on the grounds specified in Subdivision 40-A of the Tax Agent Services Act 2009, rather than terminate it. Grounds include breaching a registration condition, ceasing to meet eligibility requirements, or an event affecting continued registration. The practitioner must be notified within 14 days, given the reasons for the decision, and told what action is required to lift the suspension.

4. Breaching the Code of Professional Conduct now carries civil penalty exposure

A new civil penalty provision targets registered practitioners who breach the Code of Professional Conduct. It is available alongside existing administrative sanctions where the TPB has investigated and found a breach. This puts Code compliance into the same enforcement category as other civil penalty provisions under the Act.

5. Unregistered preparers face new criminal offences and civil penalties

Five new criminal offences target unregistered preparers who provide tax agent or BAS services for a fee, advertise such services, or falsely represent themselves as registered agents. The maximum penalty for each offence is 40 months imprisonment. Strict liability applies to the registration status element. A separate new civil penalty also targets unregistered preparers who make false or misleading statements to the Commissioner or the TPB.

6. The TPB gains infringement notice and enforceable undertaking powers

The TPB can now issue infringement notices for certain straightforward contraventions, including specified Code breaches, providing or advertising services while unregistered, and signing of declarations. Infringement notices for Code breaches can only be issued after the TPB has conducted an investigation and is satisfied a breach has occurred. The TPB can also accept enforceable undertakings for compliance with any provision of the Act, with the Federal Court as the enforcement forum.

Following termination of registration for misconduct, the maximum prohibition on re-application has also doubled from five to ten years.

7. Professional bodies broadly supported the reforms, with two exceptions worth noting

Chartered Accountants Australia and New Zealand, CPA Australia, the Institute of Public Accountants, the Australian Bookkeepers Association, the Institute of Certified Bookkeepers, the Financial Advice Association of Australia, the National Tax & Accountants' Association, the SMSF Association, and The Tax Institute all supported the TPB "having an appropriate range of sanctions to enable more proportionate and effective regulatory action."

The National Tax & Accountants' Association raised concerns about the interim suspension power specifically, arguing that setting aside the rules of natural justice would entail "the risk of getting it wrong" and that reputational damage could persist even if a suspension is later lifted. The Law Council of Australia argued in response to the consultation paper that a civil penalty was an "inappropriate response to a breach of a standard of professional conduct." Neither concern prevented the Bill's passage.

What comes next

The TPB has indicated it will undertake further consultation on administrative policies and guidance following passage. Firms should watch for that guidance, particularly on how the interim suspension power will be applied in practice and how the new civil penalty for Code breaches will interact with existing administrative sanctions.

The full Bill text, Explanatory Memorandum, second reading speeches, and Bills Digest are available on the Parliament of Australia Bill page.