Stronger Penalties for Tax Misconduct: What PAYG Employees Should Know
The government is cracking down on dodgy tax advisors with criminal penalties and tougher sanctions. Here's what it means if you're using a novated lease.
The Albanese Government has announced it's legislating tougher sanctions against tax advisor misconduct — including criminal penalties for unregistered tax preparers and new civil penalties for breaches of professional conduct codes. According to the Treasury Ministers release [Source 1], these reforms directly respond to issues raised by the PwC tax leaks scandal and recommendations from a review of the Tax Practitioners Board (TPB).
The changes include doubling the maximum duration of registration termination to 10 years, new powers for the TPB to issue infringement notices, and the ability to impose interim registration suspensions. In plain English: the bar for who can legally give you tax advice is going up, and the consequences for crossing the line are getting a lot steeper.
What this means for novated lease customers
If you're a PAYG employee using — or considering — a novated lease, this is broadly good news. Novated leasing sits at the intersection of tax law, FBT, and salary packaging. That complexity has historically made it a space where operators with loose credentials could get away with giving questionable advice.
These reforms, as outlined in the Treasury announcement [Source 1], mean the professionals involved in structuring your lease arrangements face real consequences if they're not registered or if they breach conduct standards. For customers, that means a stronger floor of accountability across the industry.
At millarX, we operate under ACL 569484, are AFCA-registered, and are a member of the FBAA — so proper licensing isn't new to us. But tighter industry-wide standards are a net positive for anyone trying to work out who to trust with their salary packaging. The point is: credentials matter, and now there are sharper teeth behind them.
Common questions
Does this change how my novated lease works right now?
No. These reforms target the conduct and registration standards of tax advisors and preparers — not the underlying tax treatment of novated leases or salary packaging. Your existing arrangement is unaffected.
How do I know if my novated lease provider is properly licensed?
Ask for their Australian Credit Licence (ACL) number and check it on ASIC's register. Membership of the FBAA and AFCA registration are additional markers of accountability. Any provider that can't produce these on request is a red flag.
What is the Tax Practitioners Board (TPB) and why does it matter to me?
The TPB is the national body that registers and regulates tax agents, BAS agents, and tax financial advisors in Australia. When someone structures your salary packaging or FBT calculations, the TPB is the oversight body ensuring they're qualified to do so.
Were these changes triggered by the PwC scandal?
Partly, yes. The Treasury release [Source 1] explicitly states these amendments address issues raised by the PwC tax leaks scandal, alongside earlier TPB review recommendations. The intent is to restore confidence in the integrity of the tax system broadly.
Does this affect the FBT exemption for electric vehicles?
Not directly. The EV FBT exemption is a separate policy and remains in place. These reforms are about advisor conduct standards, not the tax concessions themselves.