Confusion reigns as the Albanese government’s bizarre new laws requiring tax professionals to disclose mental health issues to their clients come into force.
The chairman of the Tax Practitioners Board (TPB), the body that will assess these matters on behalf of the government, has said mental health “could possibly be relevant” as a matter to disclose to clients.
But the minister responsible – Deputy Treasurer Stephen Jones – claims otherwise, telling the Daily Mail Australia that chairman Peter de Cure is wrong.
“Some silly things have been suggested, like mental health, that were clearly not intended or in scope,” Jones says.
It is not surprising that there is confusion among tax professionals, parliamentarians and the general public.
The head of the law enforcement agency says one thing: mental health “could possibly be relevant” as a disclosure issue.
The minister responsible for introducing the change says the TPB’s interpretation is “nonsense.”
Anthony Albanese’s government has introduced bizarre new rules that could force accountants to declare their mental health problems to their clients. Above, the Prime Minister with his fiancée Jodie
One tax professional affected by the changes, who did not want to be named, told Daily Mail Australia: “If you’re that stupid, then rule out mental health in the determination.” File image
However, the Minister refuses to amend the resolution to make this clear.
One accountant affected by the changes, who did not want to be named, told Daily Mail Australia: “If you are that stupid then rule out mental health in the determination and list exactly what you expect agents to reveal.”
On Tuesday, when the Prime Minister’s Office was asked directly whether the TPB chairman was wrong to include mental health as a disclosable condition under the new laws, it declined to answer the question.
Despite objections from the 13 bodies representing tax professionals – and concerns from the Coalition and independent groups – the government tabled the ministerial determination in the Senate on Monday.
This means that it is now formally in force, as there is no need for Parliament to vote on a ministerial determination for it to come into force.
So now it’s the law of the land, even though no guidelines have been developed on how mental health matters should be disclosed, if at all.
The opposition has filed a motion to dismiss aimed at eliminating or modifying the new law, which as currently written requires tax professionals to disclose “any” matter that might influence a client to hire their services.
Critics say that means accountants could have to disclose everything from personal health issues to mental health problems and sexual orientation.
It may even be necessary to disclose your religious denomination if such details could influence a client’s decision to engage your services.
The profession wants the meaning of what should be disclosed to be made clear, not only in any guidance provided but in the law itself.
The broad wording of the new laws has the potential to force accountants to make disclosures that other professionals are not required to make, which is why the industry is united in its call for change.
All this uncertainty is causing serious anxiety among tax professionals, who are waiting to find out what will happen next in this confusing debate.
Daily Mail Australia understands that a number of mental health bodies are writing to the Minister, asking him to withdraw or amend the changes made because they are likely to cause harm.
Deputy Treasurer Stephen Jones has dismissed claims about the consequences of the rule as “nonsense”.
Australian of the Year and mental health expert Professor Patrick McGorry has already expressed concern about Jones’ ministerial decision, saying he “supports clarification” of disclosure requirements.
But the mental health disclosure requirements could be just the tip of the iceberg of this poorly drafted new law, which was submitted to parliament without any consultation, according to the sector it affects.
Because the new rules state that “any” matter that might influence whether or not a client hires a tax professional must be disclosed, opponents are concerned that such broad terminology could, for example, include married same-sex accountants needing to disclose their sexual orientation to religiously conservative clients who opposed the introduction of SSM.
“The new laws are a mess and the minister responsible for them simply doesn’t listen when told about the risks. He has pressed ahead as if he knows more than anyone else, without taking into account our concerns,” another accountant told Daily Mail Australia.
Mr Jones said: “Our concern is the failure of an agent to comply with the Code and the Tax Services Act.
“It is in the public interest that this be made public. We are working with the associations to make it very clear.”
Daily Mail Australia understands that a growing number of senators are planning to support the motion to reject the bizarre new rule.
But it is not yet clear where the figures will ultimately fall. A vote is required within 15 parliamentary days.
The combined organizations opposing the new laws represent more than 500,000 members.
They say they plan to make this an issue in the next elections unless the government sees its mistake and sorts out the messy situation it has created.