Australian Government Recognises Standards For Accounting Professionals

by Mary Swire, Tax-News.com, Hong Kong

22 October 2007

The Australian government has announced that a number of professional standards schemes for the accounting profession have been recognised under Commonwealth legislation.

According to the announcement, professional standard schemes for the Institute of Chartered Accountants in Australia (NSW), the Institute of Charted Accountants in Australia (WA) and CPA Australia (NSW) have now been recognised.

The schemes formalise risk management practices, including continuing education and training for members, and provide transparent and detailed complaint procedures, leading to improved service delivery for consumers.

In return, members of the respective schemes have their occupational liability capped under the relevant State and Commonwealth legislation. Capped liability ensures that professional indemnity premiums remain affordable. Additionally, consumers can be more confident that they will be able to recover damages in the event of a claim, because scheme members are required to hold appropriate levels of insurance.

Commenting on the government's official recognition of the schemes, Minister for Revenue and Assistant Treasurer, Peter Dutton stated that: "The overarching aim of professional standards schemes and liability caps is to maintain affordable levels of professional indemnity insurance, as well as improve professional standards and consumer protection."

"I commend the Institute of Charted Accountants in Australia and CPA Australia on their commitment to maintaining the highest levels of professional standards," Dutton concluded.

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