Australian tax and BAS practices can outsource and offshore work, but the registered practitioner stays responsible for it. The Tax Practitioners Board (TPB) expects you to get client consent before sharing their information with a third party and to make sure outsourced work is done competently. This article sets out what that means in practice.
What the TPB says
The TPB’s guidance statement TPB(GS) 31/2018, Outsourcing and offshoring of tax services – Code of Professional Conduct considerations (updated April 2026), explains how the Code applies. The Code doesn’t prohibit outsourcing, but several obligations apply directly:
- Code item 6, confidentiality. Unless there is a legal duty to disclose, you must not share client information with a third party without the client’s permission.
- Code item 7, competence. You must ensure tax agent services are provided competently, including services outsourced or provided offshore by an unregistered third party.
- Consequences. Inadequate arrangements can lead to TPB sanctions, up to suspension or termination of registration.
Privacy Act obligations
Separately from the Code, the Privacy Act 1988 and the Australian Privacy Principles govern how personal information is used, stored and disclosed, including disclosure to overseas recipients. Check whether the Act applies to your practice and what consent and disclosure it requires.
How to set up an offshore arrangement properly
- Update your engagement letters. Tell clients that work may be performed offshore, where, and by whom, and get their consent.
- Keep data in your systems. Give the offshore team access to your own platforms with individual credentials, rather than sending files out.
- Limit access. Only the named team members working on a client should see that client’s data.
- Put confidentiality in writing. Every engagement should carry confidentiality and data-handling obligations.
- Review before you sign off. The offshore team prepares; your registered staff review, sign off and lodge.
- Document your quality control. Keep checklists and review notes that show how you satisfied yourself the work is competent.
How we work
Our engagements are built around these obligations: we work inside your systems using the credentials you provide, access is limited to your named team, every engagement carries confidentiality obligations, and final sign-off and lodgement stay with you. See how we work with accounting firms.
Source: Tax Practitioners Board, TPB(GS) 31/2018 and the TPB Outsourcing and offshoring factsheet (tpb.gov.au).
Last reviewed: October 2026. This article is general information, not advice for your specific situation. Rules change; check the official source or speak to us before acting.
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