The transcript has been released of the 12 June 2013 hearing of the inquiry by the Parliamentary Joint Committee On Corporations and Financial Services into the now removed Schedules 3 and 4 of the Tax Laws Amendment (2013 Measures No 2) Bill 2013, which proposed a regulatory framework to make financial planners who give tax advice subject to the tax agent services regime. The Committee heard from representatives of The Tax Institute, ICAA, CPA Australia, FPA, AFA, and the FSC.
The FSC sought several amendments, while the AFA said that while it did not oppose the introduction of the TASA regime for financial advisors, it was “actively opposed” the current version of the legislation, as it considered it did not adequately define tax financial advice services. The FPA considers the legislation is unworkable and inappropriate.
CPA Australia and the ICAA reiterated their support for the proposed amendments. The 2 accounting bodies said the proposed new regulatory regime “will put in place an appropriate regulatory framework that strikes the right balance between protecting the interests of consumers and, at the same time, requiring financial planners who currently do not meet the education requirements to lift their education and competencies over time …”.
The Tax Institute also supported the proposed reforms and considered it was “extremely important” the measures be passed into law before 1 July 2013. It was “very strongly of the view” that the 2 schedules in question should be reintroduced as a Bill to parliament, in the last 2 weeks available [ie between 17 and 27 June 2013].
[LTN 102, 13/6/13]