The Financial Planning Association (FPA) and Association of Financial Advisers (AFA) have welcomed the government’s concessions on the Tax Agents Services Act (TASA), including a 12-month extension for financial planners to be brought into the regime.

While the bill will be debated in parliament again today – and likely passed by the house of representatives – the extension and a government commitment to further consultation with industry are a significant boost to financial planners, licensees and the associations.

“The TASA extension is a win both for common sense and due process by the Financial Planning Association,” said CEO of the FPA Mark Rantall.

The FPA believes the many outstanding unresolved issues and missing detail in the reforms is good reason for its referral. It has consistently called for a continuation of the exemption while the opposition is taking credit for the eleventh hour decision to grant an extension.

“This period will provide the financial planning profession with time to ensure businesses are appropriately equipped to come under this regime and ultimately, to deliver the best outcomes for consumers,” said Rantall.

Regulatory overload

The Association of Financial Advisers (AFA) welcomed the greater certainty on the matter for advisers.

“We are pleased that common sense has prevailed and acknowledge the support of the Coalition and the Independents, as well as the Financial Services Council (FSC) and the Financial Planning Association (FPA) in collectively lobbying on the issue,” said AFA CEO Brad Fox.

In particular, the AFA welcomes the extension of the current exemption for financial advisers from TASA until June 30, 2014.

“The delay in implementation is essential given the regulatory overload the industry is already dealing with. It would have been an unfair and unreasonable expectation and an all but impossible rush for advisers to be ready for TASA by July 1 2013.”

Fox also welcomed more clarity around the definition of tax (financial) advice services, its interaction with the current Tax Agent Services regime and the definition of ‘tax agent services’.

“Getting the definitions right by way of regulation will give all interested parties an appropriate opportunity to make the legislation work in practice.”

The FPA and AFA will now work with Treasury and the Tax Practitioners Board to ensure a commercially viable outcome for the profession.

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