Aug 22, 2024, 3:30 PM
Aug 22, 2024, 3:30 PM

Concerns Raised Over New Tax Laws and Mental Health Disclosures

Highlights
  • Suicide Prevention Australia raises concerns about the impact of new tax return rules.
  • The organization highlights the potential negative effects on individuals' mental health.
  • Government urged to take action to mitigate the impact on vulnerable groups.
Story

The CEO of Suicide Prevention Australia has expressed significant concerns regarding new legislation proposed by the Albanese government that mandates tax professionals to disclose clients' mental health issues. In a letter addressed to the government, the CEO emphasized the need for measures to prevent such disclosures, which could lead to uncomfortable situations for taxpayers discussing their mental health during tax consultations. The Labor Party's recent legislation requires tax professionals to inform clients of any matters that could significantly influence their decision to retain services. Peter de Cure, Chair of the Tax Practitioners Board (TPB), acknowledged that mental health could be relevant for disclosure, raising alarms among tax practitioners. An initial Q&A from the TPB suggested that mental health issues might need to be disclosed, further complicating the situation. Confusion surrounding the new laws has left tax professionals concerned about their implications. With 13 bodies representing around 500,000 tax professionals advocating for amendments or repeal, the Coalition and some crossbenchers have indicated support for overturning the legislation. However, it remains uncertain whether they possess enough votes in the Senate to effect change. Suicide Prevention Australia’s letter aligns with the concerns voiced by mental health expert Professor Patrick McGorry, who has urged the government to reconsider the legislation. The organization agrees that mental health disclosures could be required inappropriately and stresses the importance of taking steps to prevent this from occurring.

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