The Financial Planning Association (FPA) said it welcomed the decision by the Federal Government to defer the tax agent services regime (TASR) for AFS Licence holders. Assistant Treasurer, Nick Sherry, announced plans to defer the TASR for one year, to allow further industry consultation.
Acting FPA CEO, Deen Sanders said the government’s decision is a step in the right direction and will potentially avoid over regulation and unnecessary costs.
“Financial planners and accountants are licensed and qualified to provide a specific range of financial services that are unique to each profession,” Mr Sanders said.
“While it is not uncommon for some professionals to operate in both fields, those that do are already required to be appropriately licensed and registered. The implementation of the TASR in the financial planning profession would simply burden an already heavily regulated profession without delivering any change in consumer protections.
“The government’s decision today will allow deeper industry consultation and the FPA is looking forward to working with government to ensure that consumer protection and industry practice in the allied professions are better aligned without creating cross legislative confusion.
“Financial planners who provide advice must have a basic understanding of the rules relating to taxation, which is already regulated by ASIC. To ask all financial planners to become Tax Agents defeats the intent of the Act and would fail to deliver any additional benefit to consumers already afforded by the more rigorous Corporations Act.
We have been working with the government for some time on this and welcome their recognition of our concerns.
“This announcement and the one-year deferral period will provide some ease for financial planners who are worried about the implications of the TASR,” Mr Deen Sanders said.
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