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Editor: FYI, we thought we'd include some feedback from our members about some of the issues we've raised lately.

We need to keep "I" returns

"I refer to your article "Abolishing tax returns would cost millions!"

Hear, hear.

I applaud your efforts to retain the current system of requiring people to lodge tax returns. I agree that huge numbers of people would lose out, and could add quite a few more occupations to those you have listed. A government could not hope to fairly compensate those who are disadvantaged, as every individual has their own circumstances, and these vary from year to year.

The current system ensures that by everyone lodging returns and operating by the same rules, we all "theoretically" pay our fair share.

Also from a purely selfish point of view, our practice relies heavily on the annual influx of tax returns. And without it, our business would suffer dramatically."

Tax agents do better work

"Government policy advocates that a member of the public has access to sufficient information to prepare their own tax return if they wish. Additionally, the ATO wants the taxpayer to feel there is no advantage or disadvantage to choosing to complete the return themselves or having a Tax Agent complete the return for them.

I worry that the ATO interprets this policy stance as refusing to recognise the higher standard of tax return that a Tax agent prepares to a Self Preparer. Failing to acknowledge the lower risks associated with greater knowledge amounts to being biased in favour of the Self Preparer.

I would like the Association to work towards having the quality of Tax Agent work acknowledged by the ATO with a clear position that returns prepared by Tax Agents have a lower risk of Audit and Review.

The issue of dishonest Tax Agents is used to muddy these issues and should be addressed separately."

Editor: We are working on this very issue . .

Still pressure on Tax Agents

"I must admit that I read the latest "Voice" with great amusement!!

I would like to know on what evidence you base your assertion that "….things are beginning to settle for many tax agents and some of the pressure has been relieved all round".

I am obviously not one of the many. How many is many . . . 20%, 50%, 80%??"

Editor: This is a valid comment. While things may be settling down for some, there are still clearly many others who are still facing extraordinary pressure.

However, the ATO's market research on 'The State of the Industry – Understanding Tax Agents' shows that things have definitely improved for a fair few (?) tax agents.

Some key findings include:

• Job satisfaction has improved significantly from 40% to 65% of tax agents satisfied with their job, with only 16% dissatisfied.
• Since 2003, hours worked per week have decreased from 54.6 hours to 49.1 hours on average.
• The relationship between tax agents and the ATO has improved considerably since 2003, improving from 39% to 70% satisfied with the overall level of service received from the ATO.
• Those tax agents reporting they work ‘very excessive’ hours has declined from 28% in 2003 to 17% in 2005.

Of course, those 17% could be forgiven for not breaking out the champagne glasses just yet . . .

However, our experience is that the ATO is definitely making an effort. It has also been made aware that tax agents feel that the most critical issues for the future of the profession are:

• the complexity of, and continual changes to the tax legislation; and
• for the ATO to have a greater understanding/acknowledgment of pressures on tax agents.

And the bookkeepers keep coming . . .

Editor: Our past articles about bookkeepers have clearly struck a nerve.

Many members wrote in and we thank them for their time and effort. The following sorts of comments are common. Basically, much of the work received from bookkeepers is substandard and ends up costing the client or the tax agent money. Often it's both.

One member reported that a bookkeeper failed to deduct PAYG from a client's "salary" from his company, with the result that the amounts had to be treated as drawings. That hurt.

We will be passing a summary of these on to the ATO, but some typical comments are reproduced below:

• Computerised data provided by bookkeepers is unusable or has to be reprocessed;
• Limited regulation or registration is required;
• Dealing with bookkeepers results in a lot of unchargeable time;
• Often mistakes cost clients very dearly;
• They often have minimum qualific-ations, and seem unwilling to learn;
• Problem with accepting their figures, also no bank recs, no FBT, debit loan accounts not treated correctly;
• Bookkeepers don’t accept ATO guidelines for "working under the direction of a tax agent" but need to;
• Too many bookkeepers who have only done a MYOB course;
• Good bookkeepers are the exception not the rule;
• Ongoing training required; and
• Professional associations need to stand up for qualified tax agents and require bookkeepers to be trained and qualified.

Editor: They are not going away, so it seems that the answer must be the three R's – registration, regulation and re-education.