Introduction
Know Your Client, or KYC, has become an increasingly important part of professional practice.
For Australian tax and BAS practitioners, client verification isn’t simply a compliance trend.
The Tax Practitioners Board has specific guidance about verifying client identity.
The TPB states that tax practitioners must undertake proof-of-identity checks before providing tax agent or BAS services to new clients and on an ongoing basis for existing clients, as appropriate.
What does the TPB expect?
For an individual client, the TPB’s minimum information includes:
- Full name
- Date of birth or residential address
For an individual using a representative, practitioners need to verify relevant information about:
- The client
- The representative
- The representative’s authority to act
For a non-individual client, the practitioner needs information about the individual representing the client and the non-individual itself, including an ABN, ACN or another detail that helps confirm the identity.
Why is verification important?
The TPB explains that proper identification processes help reduce identity fraud risks affecting:
- Practitioners
- Practices
- Clients
- Taxpayers
- Government
KYC is not just collecting a driver’s licence
A common misconception is that KYC means simply asking a client to provide an identity document.
A proper verification process should consider:
- Who is the client?
- Who is acting for the client?
- Does the representative have authority?
- What information needs to be verified?
- Is the information reliable?
- Is additional verification required?
Existing clients also matter
KYC shouldn’t necessarily be treated as a one-time exercise.
The TPB states that proof of identity should be undertaken before providing tax agent or BAS services to new clients and on an ongoing basis for existing clients, as appropriate.
That means practices should have a process for reviewing client identification information when appropriate.
How AML/CTF changes the picture
From 1 July 2026, certain accounting services also came under Australia’s AML/CTF regime.
This creates an important distinction:
TPB client verification obligations and AML/CTF customer due diligence are related, but they are not identical.
An accounting firm should understand which requirements apply to each situation.
AUSTRAC’s CDD framework requires reporting entities to identify customers and relevant other persons and assess ML/TF risk where the AML/CTF regime applies.
What should a good KYC workflow look like?
A structured workflow could include:
Step 1: Identify the client
Collect the required information.
Step 2: Identify representatives
Determine whether someone is acting on behalf of the client.
Step 3: Verify identity
Use appropriate verification methods and reliable information.
Step 4: Record the result
Document what was checked, when it was checked and the outcome.
Step 5: Review when required
Update or reverify information when appropriate.
How TrustEasy can help
TrustEasy provides KYC and client due-diligence tools for Australian accounting and tax practices.
Its platform supports online identity verification, screening and risk-based AML/CTF workflows.
Conclusion
Good KYC is not about collecting the maximum amount of information.
It is about collecting and verifying the right information, using an appropriate process and keeping a clear record of what was done.
For tax practitioners, that helps support both professional client-verification responsibilities and, where applicable, AML/CTF customer due diligence.
This article is general information and not legal advice. Practitioners should refer to current TPB and AUSTRAC guidance for their circumstances.
