Letty Chen has worked in public practice in both large and boutique firms, with a focus on small business and individuals. Her passion for research, analysis and writing saw her segue into technical tax writing and developing tax CPD materials. These roles helped her grasp the complexities of tax legislation, legal cases and announcements.
She joined the Institute of Public Accountants (IPA) last year as Tax & Super Advisor, supporting the IPA’s consultation work and ensuring that small business compliance is proportionate and not burdensome.
Chen discusses the unique daily challenges that come with tax advocacy, how she supports members, and the importance of seaweed crackers and musicals in helping her balance a tax career with motherhood.
Tell us about your role at the IPA?
I represent the interests of IPA members by drafting written submissions to the ATO and the Treasury and attending consultation sessions. I also assist in preparing CPD materials such as our new Definitive Guide to the New TASA Code Obligations, and the Tax Deductibility of Financial Advice Fees practical guide which we developed jointly with other associations.
What does a typical day look like for you?
There really is no typical day or week! Some weeks may find me deep in consultations and submissions. In other weeks, I have been completely focused on writing up our TASA guide. From time to time I get the pleasure of speaking to one of our members. Then there is always the unexpected excitement on the days when the Treasury drops draft legislation, or the ATO makes a significant announcement or releases a new ruling, or the Government unveils a new tax policy!
What is your background?
My previous professional experiences have proved so valuable to my role at the IPA. I started my career in public practice firms ranging from the big four to mid-tiers to a boutique practice, primarily working with SMEs and individuals. I found that I had a passion for research, analysis and writing, so I pivoted and became a technical tax writer, focusing on the preparation of tax CPD materials. My technical writing roles certainly sharpened my skills in quickly understanding and responding to new and unexpected developments and analysing the minute or hidden details of legislation, cases and announcements.
What drew you to working in this area?
Advocacy is an ideal career path for me as I can use my technical writing and analysis skills and public practice experiences to represent the interests of our members and the SME sector. There is abundant opportunity to learn and grow. Besides, not knowing what new legislation may drop next week or which topic for consultation is just around the corner keeps it exciting!
What are some of the key tax issues the accounting profession is facing?
In the immediate term, two new developments which will commence on 1 July come to mind:
- For tax practices — the 8 new Code of Professional Conduct obligations (they commenced for large practices on 1 January). Practitioners will need to ensure that they understand the new obligations and that their practices are ready.
- For clients — GIC and SIC incurred from that date will become non-deductible. So, the cost of overdue tax liabilities will significantly increase. Practitioners will need to help their clients carefully navigate tax debts, including payment plans, interest remission requests and possibly alternative funding options.
Coming soon — the Division 296 tax. Earnings on total superannuation balances exceeding $3 million will incur an additional 15 per cent tax. We are all waiting to see whether the new Parliament will pass the legislation in its current form. The measure is intended to take effect on 1 July 2025 so practitioners will need to be on top of it and help their clients as soon as the legislation is passed — right now we can prepare for it but we are in a state of uncertainty as it is not yet law.
How does the IPA support members navigating these challenges?
For the Code changes and other practice management matters, we have many practical resources in our member portal. Amongst other things, we have updated our engagement letter and quality management manual templates for the new Code obligations — feel free to adapt them to your needs. We’ve also recently produced a comprehensive guide to the new Code obligations — its release will be accompanied by a webinar explaining the key changes.
In addition, we have just published a guide to the deductibility of financial advice fees based on the most recent ATO advice. We developed this guide jointly with other associations to provide practical guidance on how to apply the new rules.
We also encourage our members to subscribe to our emails to be notified of opportunities to attend CPD events about relevant developments. You can also see all upcoming CPD events on our website.
What are some of the key emerging policies relevant to the regulation of the profession?
There are a few areas of practitioner regulation currently under Government consultation. These include:
- A review of the TPB’s registration requirements, with a particular focus on the education, qualification and experience requirements.
- A review of the regulation of accounting, auditing and consulting firms.
- Proposals to enhance the TPB’s sanctions regime.
Members will need to keep abreast of any changes in these areas in the next few years to ensure that they, their practices and their staff remain compliant with regulatory requirements.
What advice would you give accounting professionals juggling regulation, compliance, tax, superannuation and the myriad of other changes?
Read your industry e-newsletters — it’s the quickest and easiest way of finding out the must-know facts about upcoming changes.
Attend regular tax update sessions such as the IPA’s monthly online sessions for a deeper dive in a timely manner. Not all proposed or legislated changes will be of equal importance, urgency or consequence to you — once you are aware of the changes, you can prioritise what you need to find out more about.
The legislation or other source documentation, with accompanying explanatory material, is always an invaluable resource, as is guidance from regulators such as the ATO and the TPB which may give insight as to how changes will be administered.
How do you unwind after work?
I’m a mum with a professional career in tax, so these days (years) my weeknight ‘unwinding’ after work tends to take the form of after-school activities, cooking a reasonably healthy and edible family dinner, helping with homework, bedtime reading of children’s books and so on! My family does enjoy spending time together in the evenings playing board and card games, and on weekends we get out and about in the fresh air, exploring what Melbourne has to offer. The days and weeks are very busy but juggling an amazing career with a happy and healthy young family is certainly a privilege and a good problem to have.
Many accounting professionals struggle with blurred boundaries between work and home life. How do you balance them?
I have learnt to deal with the blurring of boundaries by simply embracing it and recognising that it is what has made it possible to progress in my career of choice as well as give my best to my family responsibilities!
In the past few years I’ve used workplace flexibility to maximise the effectiveness of my day for both work and home, rather than harbour unrealistic expectations that family and other personal responsibilities can conveniently be set aside until the day’s work is finished, or that a day’s work does not need to extend beyond 9-to-5. Technology and flexibility make so many outcomes possible.
For me, the keys to the juggling act are having realistic expectations about what can be done in a 24-hour period and prioritising rather than compartmentalising discrete work/non-work commitments.
What is your guilty pleasure?
On a daily/weekly basis — seaweed rice crackers and corn chips. For a rare splurge — musical theatre; most recently, I’ve had the pleasure of revisiting the old classics Les Misérables, Beauty and the Beast and Phantom of the Opera. I’ve also attended kids’ sessions of orchestra and ballet — it’s heartening to see a theatre full of young children learning to appreciate and enjoy the performing arts rather than staring and poking at screens!
More information on IPA’s Tax Roadshows can be found here.
