Standard Terms of Engagement

STANDARD TERMS OF ENGAGEMENT 

These are the Terms of Engagement (“Terms”). This Agreement is constituted by these Terms and any other later document that we advise you becomes part of, or varies this Agreement. These Terms confirm our understanding of the nature and the limitations of the services we will provide. 

For more information about your rights and obligations when engaging a registered tax agent, please refer to the Tax Practitioners Board (TPB) client factsheet: Information for Clients of Tax Agents (TPB)

AT A GLANCE - KEY POINTS

This summary highlights the most important aspects of our engagement. Please refer to the full document for complete details.

Services: We will provide accounting, taxation, and advisory services as outlined in Section 3, with the understanding that specific services may be engaged as needed during our professional relationship.

Exclusions: This engagement does not include services as detailed in Section 4.

Fee Structure: We offer both fixed-price agreements and hourly billing options, as detailed in Section 11.

Your Responsibilities: Provide complete, accurate information at least 7 days before deadlines, review documents before lodgment, and maintain appropriate records.

Termination: Either party may terminate with 7 days' written notice. Outstanding fees remain payable immediately upon termination.

TABLE OF CONTENTS

1. Purpose and Introduction
2. Term of Engagement
3. Scope of Services
4. Services Specifically Excluded
5. Our Professional Obligations
6. Your Responsibilities
7. Self-Assessment and Your Rights
8. Information and Disclosure
9. Third-Party Involvement
10. Communication Protocols
11. Fee Structure and Billing Philosophy
12. Payment Terms
13. Debt Collection
14. Limitation of Liability
15. Confidentiality
16. Privacy and Data Protection
17. ATO Portal Access Authorisation
18. Client Identification
19. Software and Subscription Arrangements
20. Record Keeping Requirements
21. Changes in Legislation
22. Digital Economy Activities
23. Related Entities or Family Groups
24. Force Majeure
25. Succession Arrangements
26. Service and Price Guarantee
27. Termination of Engagement
28. Dispute Resolution
29. Client Acknowledgment

1. PURPOSE AND INTRODUCTION

This engagement letter confirms our understanding of the services we have agreed to provide and outlines the terms and conditions that will govern our professional relationship. It sets out the scope of our services, our respective responsibilities, and other important terms. Please read this document carefully before accepting.

The Tax Practitioners Board (TPB) maintains a register of tax and BAS agents that can be accessed at www.tpb.gov.au. You can search this register to verify our registration. If you have any concerns about our services, you may lodge a complaint with the TPB through their website.

2. TERM OF ENGAGEMENT

This engagement will commence on the date you indicate acceptance by signing this letter and will continue until either party terminates it in writing or it is replaced by a new engagement letter.

If there is a change in the scope of services, your circumstances, management, ownership, structure, or the laws applicable to the scope of our work, a new engagement letter may be required.

We will review this engagement at least annually to ensure it remains aligned with your current circumstances and any changes in legislation.

3. SCOPE OF SERVICES

The services will be conducted in accordance with professional and ethical standards issued by the Accounting Professional & Ethical Standards Board, the Tax Agent Services Act 2009 (Cth), and applicable taxation laws.

Services Available Under This Engagement

We can provide the following services, which may include but are not limited to:

• Preparation and lodgment of income tax returns
• Preparation and lodgment of Business Activity Statements (BAS)
• Preparation and lodgment of Instalment Activity Statements (IAS)
• Bookkeeping and accounting services
• Financial statement preparation
• General taxation and accounting advice

The specific services we will provide to you will be agreed upon during our initial consultation and may be adjusted by mutual agreement during our engagement.

Additional Services Available Upon Request

The following services are available upon request and will be charged at our standard rates or as separately quoted:

• ATO audit assistance
• Detailed tax planning advice
• Capital gains tax advice and planning
• Other specialised taxation compliance services

We will notify you in advance if any service you request falls outside the scope of this engagement and requires additional fees.

4. SERVICES SPECIFICALLY EXCLUDED

Our engagement is strictly limited to standard tax compliance, Business Activity Statement (BAS) preparation services and administrative data entry. We provide these services exclusively on a non-transactional, historical reporting basis.

To ensure compliance with our Tax Agent Registration and our decision not to offer any designated services under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth), we explicitly do not provide any of the following services:

• Audit and assurance 
• Fringe benefits tax, Self-Managed Super Fund or not-for-profit returns or lodgements
• Due diligence for business acquisitions
• Forensic accounting and investigations
• Detailed business valuations
• Financial planning or investment advice
• Legal services 
• Centrelink or Child Support Agency advice
• Assisting with business loan/finance applications, equity or debt refinancing
• Liquidation or insolvency 
• Business succession planning
• Payroll-related services, including payroll tax, award interpretation and Fair Work compliance
• Financial management or control of clients' funds
• Advice regarding the creation, restructuring or termination of companies or trusts
• Provide registered office or business address services.
• Transactional intermediation
• Handling client money, accounts, securities, virtual assets or other property

5. OUR PROFESSIONAL OBLIGATIONS AND RESPONSIBILITIES

We will:

• Conduct all work in accordance with the professional standards and ethical requirements of the accounting profession and the Tax Practitioners Board.
• Take reasonable care in ascertaining your state of affairs to the extent relevant to the work undertaken.
• Ensure taxation laws are applied correctly to the circumstances in relation to which we are providing advice.
• Advise you of your rights and obligations under the taxation laws materially related to the services we provide.
• Act lawfully in your best interests, with honesty and integrity.
• Take all reasonable steps to ensure services provided on your behalf are provided competently.
• Maintain knowledge and skills relevant to the services we provide.
• Maintain confidentiality regarding your affairs and do not disclose information without your permission unless required by law.
• Take reasonable steps to ensure our quality management systems satisfy relevant professional standards.
• Uphold and promote the ethical standards of the tax profession.
• In relation to a false or misleading statement that could cause substantial harm, we may be required to advise you to correct such a statement and notify relevant authorities if it is not corrected within a reasonable time.
• Maintain adequate arrangements for managing conflicts of interest.
• Keep you informed of matters relevant to the services we provide.
• Notify you of any significant issues discovered during our engagement that might affect the services we provide.

6. YOUR RESPONSIBILITIES

You are responsible for:

• Providing complete, accurate, and timely disclosure of all relevant information. Your disclosure should include all sources of income from any geographical location.
• The reliability, accuracy, and completeness of the accounting records, particulars, and information provided to us.
• Maintaining adequate records to substantiate the underlying transactions of your activity, including retaining paperwork for at least 5 years.
• Meeting statutory lodgment deadlines, which requires the provision of complete information at least 30 days before deadlines.
• Checking returns and information we provide before submission to ensure accuracy and completeness.
• Ensuring your affairs are conducted in compliance with applicable laws.
• Advising us of changes in your circumstances that may affect the services we provide.
• Making a timely payment of all properly rendered invoices.
• Securing and protecting any login credentials provided for access to our client portal or other digital services.
• Advising us on a timely basis if you become aware of any conflict of interest or potential conflict of interest.
• Advising us immediately if you believe any information submitted to us was incomplete or inaccurate.

Your Disclosure and Record Keeping Obligations

The Taxation Administration Act 1953 contains specific provisions that may provide you with "safe harbours" from administrative penalties for incorrect or late lodgment of returns if, amongst other things, you give us "all relevant taxation information" promptly. Accordingly, it is to your advantage that all relevant information is disclosed to us, as any failure by you to provide this information may affect your ability to rely on the "safe harbour" provisions and will be considered in determining the extent to which we have discharged our obligations to you.

In relation to your financial records, you will be specifically responsible for retaining copies of all financial records and source documents for a period of 5 years and providing to us all financial information we have requested within 10 working days of our request.

Please note that if you do not provide us with your financial information properly reconciled and in the format requested by us, any up-front or fixed quotes we have provided to you may no longer be applicable, and the cost of our services may be higher.

7. SELF-ASSESSMENT AND YOUR RIGHTS AND OBLIGATIONS

Under the self-assessment system:

• You are responsible for the accuracy and completeness of returns lodged with the ATO.
• The Commissioner of Taxation may amend an assessment within prescribed time frames (generally 2-4 years from the date of the original assessment, or unlimited in cases of fraud or evasion).
• You have the right to:
  • Seek a private ruling from the ATO.
  • Object to an assessment
  • Appeal against an adverse decision by the Commissioner
  • Seek a review of, or appeal against, an adverse decision

These rights are subject to time limitations. Please contact us promptly if you wish to exercise any of these rights.

8. INFORMATION AND DISCLOSURE

Any advice we provide is only an opinion based on our knowledge of your particular circumstances. You remain responsible for the accuracy of your tax returns and compliance with taxation laws.

Our advice is based on the information you supply. We cannot be held responsible for consequences arising from incomplete or inaccurate data provided to us, or from changes in legislation after the date of our advice.

You confirm that details retrieved from the ATO pre-fill service reflect your actual circumstances. Any discrepancies must be reported to us immediately before lodgment of returns.

You acknowledge that the ATO may later match information with third-party data sources, which could result in adjustments to your tax position. We will assist with responding to such matters as a separate engagement.

Our advice will be based on Australian Taxation Laws in force at the date of the provision of the advice and/or services. It is your responsibility to seek updated advice if you intend to rely on our advice at a later stage. 

We note that Australian Taxation Laws are often subject to frequent change, and our advice will not be updated unless specifically requested by you at the time of the change in law or announced change in law.

9. THIRD-PARTY INVOLVEMENT AND OUTSOURCING

We may from time to time engage third-party specialists and other practitioners to assist in providing our services to you. These may include cloud service providers and Australian-based contract tax agents.

We will seek your consent if third-party involvement is likely to exceed any fixed price agreement.

Outsourced Services

We currently do not, and do not intend to, use overseas outsourced providers. All work is completed in Australia. 

Software, Automation and AI Tools

We may use specialised software, automation, or AI-assisted tools when preparing your financial statements and documents. All outputs from these tools are reviewed by qualified staff members to ensure accuracy and compliance with relevant standards and laws.

Cloud Computing Services

We use various cloud computing services, which may include accounting systems (e.g., LodgeiT, ZohoBooks), practice management systems, tax return preparation systems, superannuation administration systems, document management systems, workflow systems, and client portal solutions. These cloud computing systems store files on remote servers operated by third parties, including the use of hosting providers in Australia and potentially overseas locations.

Our firm retains client files for a minimum of 5 years (or longer if required by law). After that period, we may securely dispose of or archive them.

10. COMMUNICATION PROTOCOLS

Your primary contact at our firm will be our principal tax agent, Stephen Carroll.

Contact Information

During our initial meeting, we will confirm your preferred communication methods and establish key contacts for various service areas. Your preferences regarding communication methods and meeting format will be recorded in our system.

Response Times and Deadlines

We aim to respond to all client communications within 2-3 business days. For urgent matters requiring immediate attention, please contact our office directly with "URGENT" in the subject line of any emails.

To meet statutory lodgment deadlines, we require all necessary information at least 30 days before the due date. Late provision of information may result in lodgment delays and potential late lodgment penalties, which would be your responsibility.

Document Security

For security purposes, all tax and financial documents will be shared through our secure client portal. You are responsible for maintaining the confidentiality of your portal login credentials and for notifying us immediately if you suspect unauthorised access.

Fair Use Communication Policy

Our service includes reasonable access to professional advice and support. While we encourage open communication and are available to discuss matters related to the services we provide, we operate on a fair use basis. 

For questions or issues requiring additional research and analysis beyond the scope of this engagement, we reserve the right to quote for additional work as outlined in Section 11.

Electronic Communications and Digital Security

We may communicate with you electronically. Electronic transmissions are not secure and may be intercepted, corrupted, lost, contain viruses, or arrive late or incomplete. We do not accept responsibility for any errors or omissions that may arise from electronic communication.

For secure document exchange, we provide a client portal. We are not liable for unauthorised access resulting from client misuse or sharing of access credentials. You are responsible for maintaining the security of your login details.

Where electronic signatures or client portals are used, all parties agree that these methods are legally valid for signing and exchanging documents under this engagement.

11. FEE STRUCTURE AND BILLING PHILOSOPHY

We offer both fixed price agreements and hourly billing options to suit your specific needs and preferences.

Fixed Price Agreements

For many of our services, we offer fixed-price agreements that provide certainty about the costs you will incur. Our fixed price agreements are designed to:

• Provide transparency and certainty about your costs in advance.
• Allow you to budget with confidence
• Remove barriers to communication by eliminating concerns about being charged for every phone call or email
• Place the risk of efficiency on our practice rather than on you.
• Focus on delivering value rather than time spent

Hourly Billing for Services with Undefined Scope

While we strive to provide fixed-price agreements, particularly for ongoing services, there are instances where hourly billing is the most appropriate method:

• For project work where the scope cannot be clearly defined in advance
• For complex or unusual situations that require specialised research
• When the scope of work may change significantly during the engagement

In cases where hourly billing is necessary, we will:

• Provide an estimate based on our experience with similar work
• Keep you informed of progress against the estimate
• Notify you promptly if we anticipate exceeding the estimated amount.
• Seek your approval before continuing work that would exceed the estimate

Unanticipated Services and Additional Work

While our fixed price agreements include reasonable communications and support under our fair use policy, if your question or issue requires additional research and analysis beyond the services agreed in this contract, any additional work will be quoted to you before the commencement of the work.

When an unanticipated need arises (such as an audit, an amended tax return, or additional financial documentation required by a third party), this additional work will be performed only after arriving at a mutually agreed-upon price and issuing a Change of Service Request for your approval.

12. PAYMENT TERMS

Our fees will be billed upfront or upon completion of your interview, or at each service segment and are payable within 7 days of the invoice date.

Our professional fees are payable in full even if you choose not to lodge documents through this firm.

Invoices not paid within the payment terms may incur an interest charge at the ATO's General Interest Charge (GIC) rate per month on the outstanding balance.

If any invoice remains unpaid after 14 days, we reserve the right to cease work until the outstanding amount is settled.

Payment Methods

Bank Transfer
Account Name: Canberra Tax Solutions
BSB: 082-356
Account Number: 931398117
Reference: Your invoice number

Credit Card
We accept Visa and Mastercard payments through Stripe, Square, by phone, or in person. 

13. DEBT COLLECTION

If any amount owed to us remains outstanding after the due date specified on your invoice, we reserve the right to refer the matter to a debt collection agency. In such circumstances, you agree to be liable for:

• The outstanding balance of the invoice(s) plus
• An administration fee of $75.00 after a period of 14 days
• Any debt-collection agency fees or commissions (typically 50% of the outstanding amount)
• Reasonable legal and court costs, if  applicable, and
• Any associated administrative expenses incurred in recovering the debt billed at our compliance hourly rate.

These additional charges will be added to the total amount due. Payment of these costs will be required immediately upon demand.

14. LIMITATION OF LIABILITY

Our liability is limited by a scheme approved under Professional Standards Legislation. Further information on the scheme is available from the Professional Standards Councils: www.psc.gov.au.

Consequential Loss Disclaimer

We shall not be liable for any indirect or consequential loss, or loss of profit or business opportunity, arising out of or in connection with this engagement.

15. CONFIDENTIALITY

We will treat all information you provide as confidential. We will not disclose any information relating to your affairs to a third party without your permission, unless we have a legal duty to do so.

Our files may be subject to review by the Institute of Public Accountants (IPA) as part of their quality control requirements. By signing this engagement letter, you acknowledge that, if requested, our files relating to this engagement may be made available under these programs.

Non-Compliance with Laws and Regulations (NOCLAR)

If, during our engagement, we become aware of actual or suspected non-compliance with laws or regulations that may have material consequences, we may be required by our professional obligations to:

• Discuss the matter with appropriate management or those charged with governance.
• Request that remedial action be taken
• Disclose the matter to an appropriate authority in certain circumstances.
• Consider withdrawing from the engagement

We will discuss these matters with you where appropriate and permissible by law before taking any action.

16. PRIVACY AND DATA PROTECTION

We may collect personal information from you, your representatives, and others when providing services. You agree to work with us to meet respective obligations under the Privacy Act 1988 (Cth).

Our firm is compliant with the Privacy Act 1988 (Cth). We may disclose your personal information to third parties with your consent or as required by law.

If we collect Personal Information about your representatives, your clients and others when we provide services to you, you agree to work with us to ensure that we both meet the obligations that we each may have under the Privacy Act 1988 (Cth) (as amended) (Privacy Act). The obligations may include notifying the relevant person to whom the personal information relates of who we are and how we propose to use their personal information.

Where you have collected personal information, you confirm that you have collected the personal information in accordance with the Privacy Act, that you are entitled to provide this personal information to us and that we may use and disclose the personal information for the purpose/s we provide our services to you. We will handle personal information in accordance with the Privacy Act.

Data Breach Notification

In the unlikely event of a data breach affecting your information, we will notify you in accordance with our obligations under the Privacy Act and take all reasonable steps to mitigate any potential harm.

17. ATO PORTAL ACCESS AUTHORISATION

By accepting this engagement, you authorise Canberra Tax Solutions, tax agent number 26029695, to:

• Access your tax records via the ATO Portal
• Lodge returns and statements on your behalf
• Update your registration details with the ATO
• Correspond with the ATO regarding your tax affairs.
• Request payment arrangements if required
• Access your ATO prefill reports
• View and manage your superannuation accounts.

This authorisation remains valid until revoked in writing, authorises access to historical and future tax records, it does not authorise the tax agent to sign documents on your behalf, and may be limited by the ATO's systems and processes.

18. CLIENT IDENTIFICATION

Under the Tax Agent Services Act 2009 (Cth), we are required to verify your identity before providing services. This process helps prevent identity fraud.

You agree to provide us with appropriate identification documents when requested. These may include driver's licences, passports, company details, trust deeds, and proof of address. Different requirements apply to individuals, companies, and trusts.

Ongoing Obligations

You agree to promptly notify us of any changes to your identification information, provide additional verification information if your circumstances change, and respond to our periodic requests to update your identification information.

We may be required to verify the source of funds for certain transactions, report suspicious matters to AUSTRAC without notifying you, or cease providing services if adequate identification cannot be maintained.

Failure to provide requested identification documents may result in our inability to provide some or all of the agreed-upon services.

19. SOFTWARE AND SUBSCRIPTION ARRANGEMENTS

In providing our services, we may utilise various accounting and practice management software.

Our firm will provide access to our practice management portal and electronic signature platform for document sharing, approvals, and signing tax returns and documents.

You are responsible for maintaining subscriptions for your accounting and payroll software platforms and providing us with appropriate access. Delays or issues arising from lapsed subscriptions or access problems are not our responsibility.

20. RECORD KEEPING REQUIREMENTS

For your information, the ATO requires taxpayers to keep records for:

• 5 years from the date you lodge your tax return for most income tax records
• 5 years from the date transactions are completed for capital gains tax assets
• 5 years from the date your BAS is lodged for GST records

We recommend you maintain all tax invoices, receipts, payment records, bank statements, loan documents, payroll records, asset documentation, contracts, investment documentation, retirement benefit statements, and foreign income documentation.

Records may be kept in electronic form provided they are a true and clear reproduction of the original, are readily accessible, and can be produced in written form.

21. CHANGES IN LEGISLATION

We provide advice based on legislation and guidance current at the date of our advice. We are not obliged to update previously provided advice or documentation for changes in law unless instructed by you under a new or updated engagement.

22. DIGITAL ECONOMY ACTIVITIES

If you engage in cryptocurrency transactions, online sales, or other emerging digital activities, you are responsible for supplying complete and accurate records of all transactions. Our advice is limited to the tax and accounting treatment of such activities, based on the information you provide.

The tax treatment of cryptocurrency and digital assets is evolving, and we will apply the current ATO guidance at the time of preparing your returns. Any subsequent changes to ATO positions may require amendments to previously lodged returns, which would constitute a separate engagement.

23. RELATED ENTITIES OR FAMILY GROUPS

Where multiple related entities or family members are involved, each entity must sign a separate engagement letter or authorise the sharing of information in writing. We may require additional authorisations for any entities not listed in this engagement.

For the purposes of this engagement, we will assume that you have the authority to provide instructions on behalf of all entities listed. Please advise us immediately if this is not the case.

24. FORCE MAJEURE

Neither party shall be liable for any delay or failure to perform their obligations under this engagement resulting from events beyond their reasonable control, including but not limited to:

• Natural disasters
• Pandemics or widespread illness
• Government restrictions
• Power or telecommunications failures
• Cyber attacks

If a force majeure event occurs, the affected party shall promptly notify the other party and make reasonable efforts to perform its obligations as soon as practicable.

25. SUCCESSION ARRANGEMENTS

In the event of incapacity, retirement, or death of key personnel in our practice, we may have arrangements in place to ensure continuity of service through:

• A documented succession plan
• Secure maintenance of all client files and data
• Transition arrangements with qualified practitioners

You will be promptly notified of any significant changes to our practice that may affect your services.

Should you choose not to continue with our successor, you may terminate the engagement under the termination clause set out herein.

26. SERVICE AND PRICE GUARANTEE

We stand behind the quality and professional nature of the services we offer. If at any point you are not completely satisfied with the services we have performed, we encourage you to bring this to our attention immediately. We welcome the opportunity to address your concerns and restore your trust.

If you remain dissatisfied with the outcome of our services despite our efforts to resolve the issue, we will work towards a mutual agreement regarding the payment for services completed. 

27. TERMINATION OF ENGAGEMENT

Either party may terminate this engagement by providing 7 days' written notice. In the event of termination:

• You remain responsible for payment of our fees for services performed up to the date of termination.
• We will provide you with copies of all relevant documents upon payment of outstanding fees.
• We will take reasonable steps to cooperate with any successor accountant you appoint.

28. DISPUTE RESOLUTION

If a dispute arises between us, we will attempt to resolve the issue by mutual discussion. If the dispute cannot be resolved amicably, we agree to enter into mediation before pursuing other remedies.

We have established dispute resolution processes, details of which are available on request.

Making a Complaint to the TPB

If you are dissatisfied with our tax agent services, you have the right to make a complaint to the Tax Practitioners Board. Information about the TPB's complaints process can be found at: www.tpb.gov.au/make-complaint.

29. CLIENT ACKNOWLEDGMENT

Entire Agreement

This engagement letter constitutes the entire agreement between us relating to our engagement. It supersedes all prior communications, negotiations, arrangements, and agreements, whether oral or written.

Professional Indemnity Insurance

We maintain professional indemnity insurance in accordance with the requirements of the Tax Practitioners Board and professional accounting bodies.

Ownership of Documents

All original documents obtained from you arising from this engagement will remain your property. However, we reserve the right to make a reasonable number of copies of the original documents for our records.

Our engagement may result in the production of financial statements, tax returns, and other electronic documents or files, which will be supplied to you. Ownership of these documents will vest in you. All other documents produced by us in respect of this engagement will remain our property.

We reserve the right to exercise a legal right of lien over any of your documents in our possession in the event of a dispute between us.

Client Disclosure Authority

During our initial meeting, we will discuss and document your authorisation regarding the disclosure of your information to relevant third parties. This will be recorded separately on our client disclosure authority form.

Acceptance of Terms

By signing this letter, you understand and accept the terms of engagement for the services as outlined in this letter and acknowledge your responsibilities as outlined in this engagement letter.

If you have any questions about this engagement letter, please contact Stephen Carroll at stephen@canberrataxsolutions.com.au or on 0431 259 476.

Client Acknowledgment and Acceptance

I understand and accept the terms of engagement for the services as outlined in this letter and acknowledge my responsibilities as outlined in this engagement letter.