The Association of Financial Advisers (AFA) says it is deeply concerned over the proposed extension of the Tax Agent Services Act (TASA) to cover financial advisers. The association believes this legislation, as part of the Tax Laws Amendment (2013 Measures No. 2) Bill 2013 package currently before parliament, has been brought forward without due process or adequate consultation.
TASA was last week tabled in the federal parliament with Schedule 3 of the Act: Creating a regulatory framework for tax (financial) advice services of the Tax Laws Amendment (2013 Measures No. 2) Bill 2013 of particular relevance to advisers.
If it becomes law, then anyone who advises, lodges or represents clients in relation to tax will have to comply with TASA from July 1. Up until now advisers have been exempt from the act.
“We are deeply concerned to discover… that this legislation will not be subject to parliamentary review and could be voted on as soon as today (June 4),” said AFA chief executive Brad Fox.
He added that without adequate review there is a serious risk that the legislation will have significant unintended consequences.
“While the AFA accepts that financial advisers will come under the TASA regime, we are deeply concerned about the way it is being done and the time frame in which it is being implemented,” said Fox.
“We also continue to have significant concerns about the way the legislation has been drafted, specifically the definition of ‘tax (financial) advice services’.”
He said the government has had three years since the TASA regime was introduced to address its application to financial advisers.
“We have lobbied continually on this issue for several months,” Fox said. “We do not understand why the government has left it until the last minute, only one month before the scheduled commencement date, to address the issue, particularly given the fact that financial advisers are already highly focused on the significant challenges involved in the implementation of the Future of Financial Advice reforms.
“We are also particularly concerned with the lack of detail and regulation or guidance and will be seeking for the TASA legislation as it pertains to financial advisers to be removed from the bill so that it may be subject to appropriate industry consultation and deferred for six to 12 months.”
