---
title: "Client notice on AI use with tax records and tax file numbers"
url: "https://ailawframework.com/precedents/taxation/client-notice-ai-use-tax-records"
type: "precedent"
site: "AI Law Framework"
id: "a26-client-notice-ai-use-tax-records"
area_id: "A26"
kind: "notice"
ai_level: "green"
version: 1
law_stated_as_at: "2026-10-17"
---

# Client notice on AI use with tax records and tax file numbers

> Plain-English notice and consent form telling tax clients which AI tools the firm uses with their records, how tax file numbers are kept out of them, where data is stored, and how to opt out.

Canonical page: https://ailawframework.com/precedents/taxation/client-notice-ai-use-tax-records  
Law stated as at: 2026-10-17

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

- Kind: Notice. A formal notice to serve or publish.
- Practice area: [Taxation](https://ailawframework.com/precedents/taxation.md)
- Jurisdictions: Australia
- AI level: Green. AI can do most of the drafting. A lawyer still reviews the result.
- Law stated as at: 2026-10-17
- Status: Maintained. Checked on 2026-10-17 against the 8 authorities it cites, for Australia.

## When to use it

Use as a schedule to the engagement letter, or as a standalone notice to existing tax clients, before client information goes into any AI tool. Update it whenever a tool changes. It does not replace the firm's privacy policy, which must also be accurate.

## How AI may be used

AI may help adapt the notice to the firm's tool register and plain-English style. A lawyer and the privacy officer confirm that every statement about tools, storage and TFN handling is accurate before it is sent.

**AI may:**

- Fill the tool table from the firm's approved AI tool register
- Rewrite sections in plainer English, or for a particular client group
- Compare the notice with the firm's privacy policy and engagement letter and list inconsistencies

**AI must not:**

- Must not describe a tool's data handling from marketing material without the contract terms being checked
- Must not state that TFNs are kept out of AI tools unless the firm's process actually masks them
- Must not remove the opt-out or the consent section

**The lawyer checks:**

- Each tool listed matches the approved register and its contract terms (training use, retention, location)
- TFN statements match how the firm actually handles TFNs under the Privacy (Tax File Number) Rule 2015
- The overseas storage statement is accurate for APP 8
- The client's choice is recorded on the file before AI use begins

## Authorities

- [Tax Agent Services Act 2009 (Cth) s 30-10 (Code item 6: confidentiality)](https://www.legislation.gov.au/C2009A00013/latest/text)
- [TPB(GS) 55/2026 The use of Artificial Intelligence and the Code of Professional Conduct, paras 19 to 26](https://www.tpb.gov.au/tpbgs-552026-use-artificial-intelligence-and-code-professional-conduct)
- [Privacy (Tax File Number) Rule 2015 (Cth) ss 8, 10 and 11](https://www.legislation.gov.au/F2015L00249/latest/text)
- [Taxation Administration Act 1953 (Cth) s 8WB (unauthorised recording, use or disclosure of TFNs)](https://www.legislation.gov.au/C1953A00001/latest/text)
- [Privacy Act 1988 (Cth) Sch 1, APPs 1, 5, 6, 8 and 11](https://www.legislation.gov.au/C2004A03712/latest/text)
- [Privacy Act 1988 (Cth) s 26WE (eligible data breaches, including TFN information)](https://www.legislation.gov.au/C2004A03712/latest/text)
- [Legal Profession Uniform Law Australian Solicitors' Conduct Rules 2015 r 9.1](https://legislation.nsw.gov.au/view/html/inforce/current/sl-2015-0244)
- [OAIC, Guidance on privacy and the use of commercially available AI products (October 2024, updated January 2025)](https://www.oaic.gov.au/privacy/privacy-guidance-for-organisations-and-government-agencies/guidance-on-privacy-and-the-use-of-commercially-available-ai-products)

## Official form

[Official form](https://www.oaic.gov.au/privacy/privacy-guidance-for-organisations-and-government-agencies/handling-personal-information/the-privacy-tax-file-number-rule-2015-and-the-protection-of-tax-file-number-information)

## Full text and drafting notes

The full text and the drafting notes are not part of this public page. Signed-in firm accounts can read them at https://ailawframework.com/precedents/taxation/client-notice-ai-use-tax-records and through the signed-in MCP connector https://ailawframework.com/mcp/firm.

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*