FPA welcomes extension to tax regime exemption
The Financial Planning Association (FPA) has responded to Assistant Treasurer David Bradbury's announcement to extend financial planners' exemption from the taxation agent services regime until 30 June 2013.
Dante De Gori, general manager policy and government relations at the FPA, said the decision would allow the Government to prepare the fine print before financial planners were expected to transition to the tax agent services regime.
Bradbury said the extension would allow implementation issues to be resolved and the regulatory model to be nutted out.
The extension follows consultation with representatives from financial planning, tax and accounting bodies, the Tax Practitioners Board and the Australian Securities and Investments Commission.
Bradbury said new tax legislation would focus on "the principles of consumer protection and the delivery of quality taxation advice by financial advisers".
On 21 March, the Tax Practitioners Board formally accredited the FPA as a tax agent association recognised by the Tax Agents Services Regulations. Once they have proved they are 'fit and proper' and have the right experience, financial planners will satisfy new tax regulations under FPA membership.
New regulation will bring under the regime of the Tax Agent Services Act 2009 those financial planners who give taxation advice in the context of financial advice.
Government consultation will continue to ensure legislation is in place prior to the new deadline of 1 July 2013, Bradbury said.
Recommended for you
ASIC has accepted a court enforceable undertaking from a Perth-based company auditor who failed to adequately conduct multiple audits on an advice firm that receivers say has $100 million missing.
After a brutal month for adviser numbers, the net loss for June now stands at more than 100 advisers, but the financial year is still on track to end in positive territory.
Two advice platforms have been identified by Adviser Ratings as standouts for efficiency as time-pressured advisers become evermore fickle in their platform selection.
Private wealth manager Escala Partners has increased its alternatives allocations to more than a third in the past three years, describing the asset class as offering “fertile ground” for diversification.
