The Tax Laws Amendment (2013 Measures No 3) Bill 2013 was introduced in the House of Reps on Thur 20.6.2013 and has already been passed without amendment so it can be introduced in the Senate.
It proposes to amend the Tax Agent Services Act 2009 to bring entities that give tax advice in the course of giving advice that is usually provided by financial services licensees within the regulatory regime administered by the Tax Practitioners Board. These amendments were originally contained in the Tax Laws Amendment (2013 Measures No 2) Bill 2013 but were removed from the Bill by the House of Reps.
Currently, the Government has carved out tax agent services provided by financial services licensees and their authorised representatives from the TASA regulatory regime where the entity providing the service: (i) accompanies it with a statement that they are not a registered tax agent; and (ii) advises the recipient that they should seek the services of a registered tax agent if they wish to rely on the advice. This carve-out is due to automatically expire on 30 June 2013. The No 3 Bill will extend that exemption and the commencement date of the new regime by 12 months until 1 July 2014.
From 1 July 2014, there will be a 3-year transitional period, during which financial services licensees and their representatives may register with the Tax Practitioners Board without meeting all of the education and experience requirements.
When introducing the Bill, the Assistant Treasurer said the Government would also undertake further consultation on whether it is necessary to amend the Tax Agent Services Regulations 2009 to ensure they align with the Government’s intent that the following services should not constitute tax agent services:
- tax advice provided by a superannuation fund or pension fund pursuant to the issuance of a payment summary;
- services provided by a superannuation fund’s representatives pursuant to “intra-fund advice” provisions;
- advice provided by an insurer pursuant to payments of income protection or salary continuance insurance payments and corresponding issue of payment summary and advice therein; and
- services provided by responsible entities of managed investment schemes to the scheme.
DATE OF EFFECT: The amendments mostly commence from 1 July 2014 with a 3-year transitional period before the new regime commences in full on 1 July 2017.
The Bill also amends the ITAA 1997 to update the list of specifically listed deductible gift recipients (DGRs).
[LTN 117, 20/6/13]