Financial planners who provide tax advice will be subject to the requirements of the Tax Agent Services Act 2009 (TASA) with effect from 1 July 2013. Currently, the TASA only applies to tax advice provided by tax agents and BAS agents. The Government has now released a Regulation Impact Statement, prepared by the Treasury, on this proposed change.
These changes will mean that financial planners who offer tax advice must meet certain education and experience requirements; meet a fitness and propriety test; and follow an industry code of conduct. These requirements are to be introduced over a 3-year period, commencing on 1 July 2013.
The costs of these measures will be borne by financial planners, or those businesses which employ them. The main cost is likely to be associated with the education and experience requirements.
[LTN 219, 12/11]