The Australian Taxation Office (ATO) has been urged to expand its guidance around recent amendments to goods and services tax regulations to ensure they apply equally to financial advice provided by industry and employer superannuation funds.
The Association of Superannuation Funds of Australia (ASFA) has used a submission to the ATO to point out what it regards as an inconsistency in the ATO's approach to the provision of financial advice.
It particularly pointed to the manner in which the ATO had asked whether a regulated superannuation fund that offered wrap products or an Investor Directed Portfolio Service (IDPS) made a reduced credit acquisition when it engaged the services of a financial adviser who does the following:
* Provides advice to investors (including establishing the initial investment and ongoing advice concerning investment products);
* Executes investment transactions within established investment mandates (including rebalancing a portfolio);
* Monitors investment portfolios;
* Collects and maintains investor information and records;
* Distributes reports, statements and forms to investors; and
* Handles investor inquiries.
ASFA said it was concerned at the focus of the ATO's question on wrap products and IDPS.
"As financial advice arrangements are also provided by industry and employer superannuation funds, ASFA requests that the guidance be broadened such that it apply to all superannuation," the submission said.
