The Australian Treasury (the Treasury) is interested in views on the effectiveness of the current regime in deterring scheme promotion; whether exemptions adequately protect compliant tax practitioners; and how comparable regimes deter misconduct. The government says it is committed to ensuring the Australian Tax Office (ATO) 'has the tools needed to address schemes'. The consultation paper outlines the purpose, administration and operation of the tax promoter penalty laws; emerging behaviours; and other frameworks which may apply to promoters of tax exploitation schemes. The consultation closes on 1 November 2024.

The review is partially prompted by the 2022 PwC tax leaks scandal, which provoked an angry response from the government. The affair, in which confidential government information was allegedly used to help clients avoid tax, 'exposed severe shortcomings in Australia's regulatory frameworks', said the government, which promised to 'oversee the biggest crackdown on tax adviser misconduct in Australian history.' It undertook to 'increase penalties, giving regulators stronger teeth to investigate and prosecute perpetrators and boosting transparency, collaboration and coordination within government'. The tax promoter penalty laws in force at the time had remained largely untouched since their creation in the 2000s and had only been applied six times, it said.