The Association of Financial Advisers (AFA) has welcomed the removal of the Tax Agent Services Act (TASA) schedules from the Tax Laws Amendment (2013 Measures No.2) Bill 2013 (The Bill) today and has called on the Government to extend the existing carve-out for financial advisers through to 30 June 2014.
AFA Chief Operating Officer Mr Phil Anderson said, “This is a good outcome for financial advisers, as the TASA amendments incorporating financial advisers were flawed and there was both a lack of adequate consultation and seriously insufficient time for implementation.”
Mr Anderson said the AFA is particularly pleased that the Government has responded to feedback from the industry and, most importantly, feedback from financial advisers who sought to have changes made to the legislation and a delay in the commencement. “Without adequate review there was a serious risk that this legislation would result in significant unintended consequences,” he said.
“The AFA accepts 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.”
Mr Anderson said the Government has had three years since the TASA regime commenced to address the issue with the application to financial advisers. “A further delay of 12 months, in order to get this correct is an appropriate way to manage the issue.”
In response to suggestions that clients could be disadvantaged by a delay in the commencement of the application of TASA to financial advisers, the AFA maintains that the qualifications obligation did not commence for some time for existing advisers and client complaints would have been addressed under the existing Australian Financial Services Licensing arrangements, as they always have.
“We are thankful for the support of our members who have taken an interest in this issue and those who have made efforts to talk to local members of Parliament to ensure the outcome that has been achieved today,” Mr Anderson said.