Advisers still confused by entanglement in TASA regime

Many financial advisers are still none the wiser about why they have been caught up in the Tax Agent Service Act regime, according to the Association of Financial Advisers (AFA).

The AFA has used a submission to the Inspector General of Taxation’s Review of the Future of the Tax Profession to point out the degree to which confusion continues to surround the regime.

“The three-year transition period for registration with the Tax Practitioner’s Board (TPB) has now concluded and financial advisers are starting to go through the renewal process,” the submission said.

Related News:

However, it said that despite the long lead time on this transition, “many of our members remain quite unclear on why they are caught in the TASA regime, when all that they do is provide incidental tax advice to clients”.

The AFA said the vast majority of its members were very careful about the provision of tax advice and recommended that their clients see an accountant on anything complex, if they were not already seeing an accountant.

“Financial advisers are not able to complete tax returns or represent clients with the Commissioner of Taxation,” the submission said but added that financial advisers could provide significant value helping clients plan and ensure their financial wellbeing through strategies including salary sacrificing into super, tax deductibility of income protection insurance premiums, taxation of insurance benefits, awareness of capital gains tax liability and planning for eligibility to the Age Pension.

It said that in order to fulfil their best interests obligations, financial advisers needed to have a complete understanding of their client’s entire financial affairs in order to provide advice that was tailored to their personal circumstances.

“Financial advisers have visibility of the financial investments that clients have through being the registered financial adviser on their client’s accounts. This enables them to have visibility of those investments through product provider systems and to provide regular reporting to their clients,” the AFA said.

“Another key part of the role of a financial adviser is to assist the client with cashflow management advice. Often clients have limited awareness of their own salary and investment income. It can often be a challenging exercise for advisers to obtain this information. In some cases, clients will give the adviser a hard copy of their previous tax returns,” it said.

Related Content

CBA faces further advice compensation

The Commonwealth Bank (CBA) is facing further financial advice compensation issues, undertaking to review all advice given to customers by five former...more

CBA defends its advice compensation processes

The Commonwealth Bank is defending its processes in reviewing and remediating the clients of a further five former advisers identified by the Australi...more

FASEA must deliver on consultative process

If it was the intention of the Financial Adviser Standards and Ethics Authority (FASEA) to grab the attention of all Australia’s practicing financia...more




I am unsure if once registered with TASA and are issued with a number that a Financial Advisers can access to a view only version of the tax portal so we can check their income over the longer term, look fro lost super etc.

Asking clients to do this on does not work.

Accountants do not like being dragged off their high horse by losing the accountants exemption and needing to be licensed under an AFSL for doing what they have been doing for years. So these new TASA / TPB requirements is a clever way to get revenge and make some extra money. The TPB offer zero service and support to advisers for what we pay them plus are staffed and managed by idiots. It is offensive and the cost of this will be passed on to customers making advice more expensive and achieves nothing practical.

You do realise mate that the TPB is a government body don't you? It is the Federal Government that is getting more money out of us, not the accounting profession.

Not only do advisers have to pay the fee, self employed advisers who have a company also have to pay a company fee!!!!!!!!!!!!!!!!.
The T.P.B gloated recently that they have registered approx 3,000 members, at $600 per member that is $1,800,000.
That is a lot of salary's and administration costs

Just renewed my CAR TPB registration. Another $400 p.a. I now need to pass onto my clients. Oh, and guess what, even though I am already registered, I can't generate the TPD logo until the renewal process is complete - in January 2018. Useless.

Add new comment