The federal government has extended the exemption for financial advisers of the Tax Agent Services Act (TASA) bill and has referred the bill to the Parliamentary Joint Committee for an inquiry.
The regulations will allow accountants (and others) to provide a broader range of financial product advice than currently allowed for under the existing accountants’ exemption.
The governments’ decision follows continued pressure from industry bodies, and Assistant Treasurer David Bradbury Bradbury has removed July 1, 2013, as the date when the exemption for financial advisers to become registered tax agents was due to come to an end.
The Association of Financial Advisers (AFA) chief operating officer Phil Anderson has stated that they “accept that financial advisers will come under the TASA regime, however it needs to be done in a way that allows for appropriate consultation and sufficient time for implementation.”
Dante De Gori general manager of Policy and Standards at the Financial Planning Association has also endorsed the decision by adding that “the decision is an acknowledgement from the government that there is more need for time for consultation and to sort out details.” Other Industry organisations have also echoed De Gori’s sentiment with concerned been voiced that the end of the TASA exemption will need to be redetermined and more consultation time is needed to clarify ambiguities in the amendment.
The House of Representatives tabled the legislation this week and the bill is expected to be pass on June 27.