REGULATOR PERFORMANCE FRAMEWORK

Tax Practitioners Board (TPB) reporting against the Regulator Performance Framework’s six key performance 
indicators (KPIs)

The following metrics were approved by the Assistant Treasurer in June 2015 and will be used by the TPB in an annual 
self-assessment of performance against the Framework.

KPI 1 - Regulators do not unnecessarily impede the efficient operation of regulated entities	
Measures	Metric	Source of evidence	
The TPB conducts regular consultative forum meetings to ensure stakeholder views are considered when changing policies and practices.

	The TPB conducts regular consultative forums with TPB accredited tax and BAS agent recognised professional associations, and has commenced ongoing consultative forums with tax (financial) adviser recognised professional associations and other stakeholders.

•	During 2013-14, there were four tax and BAS agent consultative forum meetings  held with  recognised professional associations and other stakeholders, demonstrating ongoing dialogue with key stakeholders  
•	The TPB provided consultative forum members with draft copies of all proposed policy guidance materials for feedback before they are publicly released for feedback. Feedback from consultative forum members indicates that they can see how their feedback has been taken into account once these documents are published 
•	Stakeholders agree that the forums provide a valuable opportunity for them to have input into and be informed of TPB policies
•	The TPB issues communiques summarising key messages from the consultative forum meetings to association representatives (who then distribute key messages to their members).	•	TPB Annual Report
•	TPB website
•	Consultative forum communiques
•	Stakeholder feedback from forum events.

Registration and renewal applications are processed within TPB service standards to reduce delays for tax practitioners.
 	The TPB performance and service standards are met to minimise delays and costs for tax practitioners. Updated TPB performance and service standards are published on our website enabling tax practitioners to assess the likely timeframes involved in processing new or renewal applications. 

•	On a quarterly basis the TPB publish figures on the website to show processing times for applications and renewals, and numbers of applications processed, as well as compliance case outcomes and processing times for complaint cases
•	The service standard for registration of applications (new and renewal) decided within 30 days of receiving a complete application is 80% and; 95% decided within 60 days. During 2013-14, the TPB processed 81% of all new and renewal applications within 30 days and 94% were completed within 60 days.  	•	TPB Annual Report 
•	TPB website.	

KPI 1 - Regulators do not unnecessarily impede the efficient operation of regulated entities	
Measures	Metric	Source of evidence	
Publishes policy guidance material to support tax practitioners and reduce costs of compliance.

	The TPB publishes policy guidance (explanatory papers, guidelines and information sheets) to help tax practitioners understand and comply with their obligations. Proposed policy material is issued as public exposure drafts to seek feedback from professional associations, tax practitioners and consumers, which is taken into account in the TPB decision making process before finalised material is published.

•	The TPB released four public exposure draft papers for comment and feedback during 2013-14, and received comments and submissions in response 
•	Stakeholder feedback at consultative forums indicate they are satisfied that their views been taken into consideration when the finalised products have been published
•	Examples of recently issued products in 2014-15 include:
o	TPB(I) 25/2015: Applying for registration during the transitional period: Sufficient experience to be able to provide tax (financial) advice services to a competent standard
o	TPB(I) 24/2015: Relevant experience for tax (financial) advisers
o	TPB(EP) 06/2014: Continuing professional education policy requirements for tax (financial) advisers. 	•	TPB Annual Report
•	TPB Website
•	TPB eNews
•	Stakeholder feedback and submissions.	
The TPB works with the ATO to streamline practices and processes to continually enhance and support tax practitioner services.	The TPB liaises and works with the ATO in a range of forums and working groups. This ensures that electronic data transfer arrangements and messaging are aligned, when appropriate, and to provide better assistance to tax practitioners. 

•	Tax practitioners and other key stakeholders receive advice on matters that impact on them and reduces administrative delays for them, such as: detecting any data transmission errors quickly and updating relevant  tax agent portal details 
•	The TPB consults with the ATO on a range of items, for example involvement in an ATO working party to develop the plan for the future role of tax practitioners under the Reinventing the ATO programs of work (which will be an ongoing body of work).     	•	TPB Annual Report.	

KPI 2 - Communication with regulated entities is clear, targeted and effective	
Measures	Metric	Source of evidence	
TPB’s communication strategy involves multiple digital media channels to provide targeted and clear information to tax practitioners.	The TPB regularly provides updated information to tax practitioners and other stakeholders to minimise costs and delays. 

•	eNews – is published regularly and each edition was distributed to over 40,000 registered tax practitioners subscribers 
•	Twitter feed – to distribute news and information, and respond to general inquiries – including tax practitioners, industry associations, government agencies and consumers. Resulting in approximately 190,000 retweets during 2013-14 
•	TPB produces YouTube videos to host and share TPB information and during 2013-14 had over 3,400 views
•	TPB LinkedIn profile page to build on our consultation and public awareness strategies
•	Responding to social media posts and clarifying issues raised 
•	TPB conducts Webinar information sessions with polling and surveys of participants to  provide information to tax practitioners  
•	TPB distributed 18 media releases during 2013-14 to provide up to date information – with further distribution through the associations.	•	TPB Annual Report 
•	TPB website
•	TPB eNews
•	TPB Twitter hashtag #TPBQ&A
www.youtube.com/TPBgov.	
TPB conducts and attends regular outreach events as part of its engagement policy with tax practitioners and other stakeholders to ensure its communications are clear, targeted and effective.

	The TPB continues to conduct regular outreach events for targeted audiences across Australia and receive feedback from these events as part of the TPB’s decision making process. 

Regular outreach events include:
•	TPB sponsored outreach events held in various locations in Australia
•	Association related conferences
•	Attend speaking forums, such as ATO Open Forum events.

•	During 2013-14, the TPB conducted 29 face-to-face outreach events at several locations across Australia, and presented at 31 external speaking events at forums and conferences. Stakeholder feedback supports the proposition that we have listened to our stakeholders and their feedback at these events, for example, we publish articles in our eNews to highlight relevant messages on the use of engagement letters by tax practitioners and how to use our Registered Agent Symbol.	•	TPB Annual Report 
•	TPB website
•	TPB eNews
•	Stakeholder feedback.

KPI 2 - Communication with regulated entities is clear, targeted and effective	
Measures	Metric	Source of evidence	
The TPB conducts regular consultative forums with stakeholders as an important communication channel to ensure our messaging is targeted and effective.

	[Note: assessment of this measure will make appropriate cross-references to the related measure under KPI 1 to avoid duplication of reporting.]

The TPB conducts regular consultative forums with TPB accredited tax and BAS agent recognised professional associations and has commenced ongoing consultative forums with tax (financial) adviser recognised professional associations and other industry representatives. 

The consultative forums provide an ideal channel for the stakeholders to provide direct feedback to the TPB on a whole range of items that affect them. 

•	During 2013-14, there were four tax and BAS agent consultative forums were held with  recognised professional associations and other key stakeholders, demonstrating ongoing  dialogue with key stakeholders
•	Agendas are sent to all consultative forums members prior to any meetings
•	Communiques summarising key messages from the consultative forum meetings are sent to association representatives (who then distribute key messages to their members). Communiques are issued after every forum and sent to association representatives
•	Stakeholders agree that the forums provide an opportunity for the stakeholders to be informed of and have input into draft TPB policy guidance material before they are published for wider public submission feedback.	•	TPB Annual Report
•	TPB website
•	Consultative forum communiques
•	Stakeholder feedback.

KPI 2 - Communication with regulated entities is clear, targeted and effective	
Measures	Metric	Source of evidence	
The TPB website is the main channel for communicating with tax practitioners and consumers. 	The TPB website is clear and accessible. Information is easy to locate and the site conforms to the Australian Government accessibility guidelines. The website provides comprehensive information on:
•	Registration and renewing your registration 
•	Tax practitioner obligations and qualifications 
•	Registration and renewal service standards 
•	TPB public register 
•	Lodging a complaint about a tax practitioner’s service.

•	During 2013-14, the TPB website attracted 361,671 visits and the associated public register of registered tax practitioners was used for 702,914 searches. Further evidence will be based on stakeholder feedback and/or an internal assessment of how well the TPB website accessibility policies have been implemented, allowing tax practitioners, stakeholders and consumers to search for information at a time that best suits them.	•	TPB Annual Report 
•	TPB website.	
The TPB continues to develop communications systems and services that contribute to more efficient services to tax practitioners.
	The TPB has direct contact with entities to resolve issues.  Contact can be made with the TPB through the Enquiries Management area by either: Letter, email or telephone. The TPB has a number of service standards for these contact points:

•	During 2013-14, the service standards were 90% of phone calls answered within five minutes and 95% within 10 minutes. During this period, the TPB achieved 95% of phone calls were answered within five minutes and 99% of phone calls were answered within 10 minutes. 

The TPB also initiates contact with entities to request information and remind practitioners of upcoming renewal requirements. 

•	For example, the TPB sent over 6,000 system generated emails to tax practitioners reminding them that their registration is due for renewal in 60 days and again at 30 days prior to renewal. To enhance this service in 2014-15, the TPB  initiated sending out reminder SMS’s to tax practitioners who only have seven days left to renew their registration. This helps ensure all tax practitioners are aware of their renewal obligations and facilitates early lodgement of their renewal applications to prevent disruption to their business.	•	TPB Annual Report
•	TPB website.	
KPI 2 - Communication with regulated entities is clear, targeted and effective	
Measures	Metric	Source of evidence	
TPB publishes clear policy guidance material which is targeted to support tax practitioners in complying with their obligations.

	
	[Note: assessment of this measure will make appropriate cross-references to the related measure under KPI 1 to avoid duplication of reporting.]

TPB publishes policy guidance (explanatory papers, guidelines and information sheets) to help practitioners understand and comply with their obligations. Proposed policy material is issued as public exposure drafts to seek feedback from professional associations, tax practitioners and consumers, which is taken into account in the TPB decision making process before material is finalised. 

•	The TPB seeks feedback for its draft published policy guidance material and receives comments and submissions from stakeholders and interested parties. The TPB released four exposure draft papers for comment and submissions, Stakeholders report that they are satisfied that their feedback is taken into consideration when finalising published products.
•	Examples of recently issued products include:
o	TPB(I) 25/2015: Applying for registration during the transitional period: Sufficient experience to be able to provide tax (financial) advice services to a competent standard
o	TPB(I) 24/2015: Relevant experience for tax (financial) advisers.	•	TPB Annual Report
•	TPB website
•	Stakeholder feedback.	

KPI 3 - Actions undertaken by regulators are proportionate to the regulatory risk being managed 
	
Measures	Metric	Source of evidence	
TPB performance and service standards for complaint handling are met to ensure different levels of risk are managed effectively.
	The TPB Strategic Plan details the strategic risk based approach to compliance work, and also details key performance and service standards to assist in measuring the timeliness of compliance work.  The risk based compliance approach is aiming to ensure that the correct treatment strategy is assigned to each category of risk. 

The TPB publishes key compliance results every quarter on its website. This is an important measure in managing expectations for tax practitioners so they know how long it takes to finalise complaints.   

•	TPB has set new service standards for 2015-16 for compliance work to improve timeliness:
o	80% of all complaints received are finalised within 150 days: and
o	90% of complaints received are finalised within 210 days.	•	TPB Annual Report
•	TPB website.	
The TPB website provides tax practitioners with relevant information about their obligations and facilitates appropriate behaviour aligned with TPB’s objectives. 
	The TPB website provides information on their strategic objectives and policies so tax practitioners can see the balance between meeting our obligation to protect consumers and avoiding unnecessary burdens on tax practitioners. 

Relevant guidance is published on the obligations of tax practitioners.

•	A range of guidance has been published, including on the Code of professional conduct, fitness and propriety, professional indemnity insurance and  continuing professional education 
•	An overview of the TPB’s compliance model and the TPB’s complaints handling process, helping  manage expectations for tax practitioners (including in relation to  what actions they can expect from the TPB when they are the subject of a complaint)
•	The Summary of penalties, sanctions and terminations report. This report provides case examples of action taken against tax practitioners who have breached the legislation, demonstrating the TPB’s compliance work in upholding professional integrity.	•	TPB website.	

KPI 3 - Actions undertaken by regulators are proportionate to the regulatory risk being managed 
	
Measures	Metric	Source of evidence	
TPB compliance work is risk based and there is a graduated response depending on the level of risk involved.  
	The TPB’s compliance work is risk based with a graduated range of outcomes or sanctions imposed depending on the level of risk involved and the behaviour of the tax practitioner. The TPB focuses its compliance program on areas where there is the greatest risk to community. 

TPB seeks outcomes or impose sanctions that are commensurate with the seriousness of any breach of the law. 

•	The TPB compliance model demonstrates the graduated approach to compliance outcomes 
•	The TPB publishes the outcomes to compliance work showing the graduated results for compliance work.	•	TPB Annual Report
•	TPB website.
	
To manage the risk to consumers when using the services of registered tax practitioners. 
	Information and intelligence obtained from the TPB compliance management systems enables us to identify the different levels of risk and trends involved in non-compliant behaviour, and to plan and allocate resources effectively to better manage these risks. 

•	For example, in 2013-14 a number of compliance cases referred from the ATO had a pattern of fraud to them. Due to the high level of risk associated with these fraud matters, it was decided to run these cases together under a project to more effectively manage this work and achieve appropriate outcomes due to the high level of risk involved, with appropriate cases subsequently referred to the Federal Court for civil penalty action in 2014-15
•	Performance standards reflect the different time frames associated with different levels of risk – with low risk cases handled at the Risk and Issues Management Stage that aims for resolution or progression within 30 days.  An extra 90 days are then allocated to Medium risk cases which are often resolved in the Preliminary Enquiry stage. Cases that proceed to a full investigation for a Board Conduct Committee decision have an additional 90 days to meet the performance standard. 	•	TPB Annual Report
•	TPB website.

KPI 3 - Actions undertaken by regulators are proportionate to the regulatory risk being managed 
	
Measures	Metric	Source of evidence	
The TPB conducts regular consultative forum meetings to engage members in its compliance program and ensure their feedback is considered.
	The TPB provides compliance information to the ongoing consultative forum with accredited recognised tax and BAS agent associations, and the tax (financial) adviser forum. This helps to inform and engage professional associations and their members, with the TPB’s compliance program and to consider feedback on proposals.

The TPB provides updated compliance information at the consultative forums, including: 
•	TPB Regulatory Assurance monthly report 
•	The updates to the TPB Summary of penalties, sanctions and terminations report, which demonstrates the TPB’s compliance work in upholding professional integrity.	•	TPB Annual Report
•	TPB website
•	Consultative forum communiques
•	Stakeholder feedback.	

KPI 4 - Compliance and monitoring approaches are streamlined and co-ordinated	
Measures	Metric	Source of evidence	
Compliance activities are coordinated by independent Board members or Board committees. In which our work is assessed against the TPB compliance model and strategic risk management approach.	The TPB streamlines and coordinates its compliance activities by the involvement of independent Board members in all formal investigations, ensuring a national consistent approach is taken to all compliance work.

•	Single Delegate process (national model) is in place ensuring early guidance for all formal investigations from an independent Board member (independent Board members provides early guidance in 100 per cent of formal investigations)
•	Board Conduct Committee operates as an independent decision making body that considers all potential breaches of the Code of Professional Conduct and fit and proper issues. The Board Conduct Committee takes a graduated approach to imposing sanctions, depending on the level of risk involved
•	To streamline Single Delegate and Board Conduct Committee work, the TPB holds monthly Single Delegate meetings and Board Conduct Committee meetings. During 2013-14 these meetings resulted in 310 sanctions being imposed.	•	TPB Annual Report
•	TPB website
•	TPB Strategic Plan.	
The TPB promotes and facilitates relationships with other Commonwealth regulators for the advancement of our compliance objectives. 	The TPB works with and shares information with certain Commonwealth regulators to co-ordinate approaches to compliance work, where permitted. Staff liaise and work with Commonwealth agencies to assist in the timely exchange of information.

•	ATO – TPB compliance staff regularly liaise and co-ordinate compliance case work with the ATO to ensure the timely progression of referrals of compliance cases from the ATO   
•	Australian Securities and Investments Commission (ASIC) – the TPB/ASIC Project Group was set up to co-ordinate the co-registration of tax (financial) advisers with the TPB in July 2014 
•	Inspector General of Taxation (IGT) – the TPB now works with IGT since the transfer of tax administration complaints from the Commonwealth Ombudsman to the IGT in May 2015.  	•	TPB Annual Report
•	MOU’s
•	TPB website.	

KPI 4 - Compliance and monitoring approaches are streamlined and co-ordinated	
Measures	Metric	Source of evidence	
The TPB Strategic Plan details our compliance model and its strategic risk management approach to compliance work. 
	The TPB Strategic Plan is published on our website and referred to in our Annual Report, following consultation with the consultative forum members. By publishing the Strategic Plan, the TPB are aiming to facilitate an open and consultative approach to our compliance work and to assist tax practitioners understand their obligations. 

•	Providing demonstrated avenues for stakeholders to provide feedback on our Strategic Plan before it is published. Feedback has been supportive of this process.	•	TPB Annual Report 
•	TPB website
•	Stakeholder feedback.
	
In order to improve the level of service to complainants and streamline the complaints handling process, the TPB has an Independent Review process.	The Independent Review process provides an avenue for complainants to seek another option if they are not satisfied with the resolution of their complaint. Independent Reviews are conducted by senior staff to re-examine a case and ensure all aspects of the matter have been considered by the TPB. This process reduces the need for complainants to contact external agencies if they wish to have the outcome to their matter reconsidered.   

•	There were 13 Independent Reviews conducted during 2013-14 and only one case was reopened to consider additional information provided during the review.	•	TPB Annual Report 
•	TPB website.	
Uses the Annual declaration process to streamline the collection of information from tax practitioners and verify they are meeting their registration obligations.	The Annual declaration form will ensure TPB records are up to-date and accurate and minimising potential delays to tax practitioner’s renewal processing. It will provide an annual check for the TPB to verify that registered practitioners are on track with meeting their ongoing registration obligations and ensuring the TPB has updated contact details. 
 
•	The electronic Annual declaration form has been designed to minimise the amount of time taken for tax practitioners to complete it and has been the subject of usability testing
•	The TPB consulted recognised professional associations through the consultative forums over the concept and processes of the Annual Declaration form. Feedback was supportive of this new process.	•	TPB portal – Annual declaration 
•	TPB Annual Report
•	Consultative forum communiques. 

	

KPI 5 - Regulators are open and transparent in their dealings with regulated entities	
Measures	Metric	Source of evidence	
Publication of TPB policy guidance material in promoting accountability to tax practitioners, stakeholders and consumers.
	The TPB publishes a range of new and updated policy guidance (explanatory papers, guidelines and information sheets) to help tax practitioners understand and comply with their obligations. All proposed policy guidance is provided as public exposure drafts for the purpose of seeking stakeholder feedback for consideration in the TPB decision making process.

The TPB uses a range of media channels to publish exposure drafts or announce they are open for public comment or submissions. This approach to publishing exposure drafts forms part of the TPB’s consultative process in the development of its policies. 

Channels include:
•	Announcements in the TPB website
•	Updates in the relevant edition of eNews
•	Twitter announcements
•	 LinkedIn commentary.  	•	TPB Annual Report 
•	TPB website
•	eNews
•	Tweeter
•	LinkedIn.	
All TPB communication channels refer to the TPB website and it is the main channel for communicating with tax practitioners and consumers.  	The TPB website is the first point of contact for over 80% of enquiries for tax practitioners and the wider community. The website directs tax practitioners and consumers to information on: registrations, compliance information, tax practitioner obligations, and registration processing and compliance statistics. The website allows for tax practitioners and other stakeholders to readily access this information. 

•	The TPB website content is reviewed and updated when required and has been the subject of independent  reviews to improve usability 
•	A range of registrations and compliance performance measures and service standards results are published in a timely manner
•	The TPB website is clear, accessible and information is easy to locate.	•	TPB website.	
Publication of TPB Annual Report which details a broad range of TPB strategies and processes.
	The TPB Annual Report provides details of the TPBs strategic, operational and business directions to enhance stakeholder and public accountability. It also contains a range of performance measures and service standards, and related results for stakeholder and public scrutiny. 

Main themes published include:
•	The TPB legislative framework and powers
•	The TPB’s program objectives and deliverables
•	Communications and public awareness
•	Registrations and compliance work.	•	TPB Annual Report 
•	TPB website.
	
The TPB conducts regular consultative forum meetings as part of its consultative framework to be open and responsive to stakeholder needs.	The TPB conducts regular consultative forums with tax, BAS agents and tax (financial) adviser recognised professional associations to ensure their views and experiences are taken into account regarding our processes and compliance programs.

•	Stakeholders agree that the forums provide a valuable opportunity to have input into and be informed of TPB policy and practises  
•	The Government’s deregulation program to consider options for reducing the time tax practitioners spend interacting with the TPB
•	The TPB registration processes to further improve the service for tax practitioners    
•	Providing copies of the TPB Regulatory Assurance monthly report and the TPB Summary of penalties, sanctions and terminations report. Demonstrating the TPB’s compliance work in upholding professional integrity.	•	TPB Annual Report 
•	TPB website.	
The TPB conducts regular outreach activities which forms an integral part of the TPB’s ability to engage openly with tax practitioners.	The TPB conducts regular outreach events, conferences and webinars to provide additional forums for engagement and feedback. This forms part of the TPB’s strategy to engage with tax practitioners and industry as part of its decision making process. Board members are invited to, and speak at a range of external events.

•	Industry conferences, Tax and BAS agent seminars, university and TAFE events, and professional association events and webinars throughout the year. During 2013-14 the TPB attended 31 of these events
•	The TPB conducted 29 face-to-face outreach events during 2013-14. 	•	TPB Annual Report
•	TPB website.	

KPI 5 - Regulators are open and transparent in their dealings with regulated entities	
Measures	Metric	Source of evidence	
TPB stakeholder engagement policy and stakeholder dissemination processes used to implement and improve the co-regulation of tax (financial) advisers.	The TPB uses its extensive range of communications channels to engage key stakeholders in the financial planning industry to raise awareness of the new regulatory arrangement for tax (financial) advisers.  

The TPB holds consultation sessions with financial planner associations and relevant financial industry groups to inform them of the development of policies and guidance material in the co-regulation of tax (financial) advisers.

•	The TPB is committed to ongoing consultation and developing further guidance material to support tax (financial) advisers. The TPB now conducts consultative forums for tax (financial) adviser recognised professional associations and other stakeholders to inform and receive feedback with improvements in this process.   	•	TPB Annual Report
•	TPB website
•	Stakeholder feedback.
	
The TPB establishes cooperative and collaborative relationships with tax and BAS agent recognised professional associations to help facilitate continuous improvements.	The TPB conducts regular consultative forums with tax and BAS agent recognised professional associations, ensuring their views and experiences are taken into account regarding TPB processes and compliance work:

•	Consultative forum members are provided with draft copies of policy guidance material before it is publicly released for feedback and submissions 
•	Communiques summarising the key messages from these forums are sent to the association representatives to help communicate the key theme discussed.	•	TPB Annual Report
•	TPB website.
	
To engage key stakeholders to provide an enhanced level of service for registered tax (financial) advisers.	The TPB worked in collaboration with ASIC to develop its registration and co-regulation policies for tax (financial) advisers. The TPB and ASIC set up the TPB/ASIC Project Group to exchange information and reduce the regulatory burden for tax (financial) advisers.  

•	To hold at least three TPB/ASIC joint meetings annually to facilitate this.  	•	TPB Annual Report
•	TPB Website
•	TPB-ASIC MOU.

KPI 6 - Regulators actively contribute to the continuous improvement of regulatory frameworks  	

Measures	
Metric	
Source of evidence	
Continue to build and enhance our suite of online application and renewal forms to provide a more effective service to tax practitioners. 
	The TPB is currently working on a continuous improvement plan for our suite of online application forms for registration and renewal processes, and regular information requirements. This will enhance the user experience for tax practitioners by saving time and effort with the electronic lodgement of their registration and renewal applications.

•	The forms are being co-designed and built with the help of an external contractor. A separate independent body has provided governance and oversight of this process to ensure the most suitable processes are employed in the design and build of our online forms. 	•	TPB Annual Report.
	
Engage as appropriate with policy departments, especially Treasury, on possible reforms to regulatory frameworks.
	Treasury feedback confirms that there was appropriate engagement on possible reforms to regulatory frameworks, particularly with a view to reducing regulatory burden.

•	Number of matters we have consulted on.	•	Treasury input.