PJC grants minimal TASA respite
The financial planning industry has been granted only a modest concession with respect to the timing of the Tax Agents Services Act changes, with the Parliamentary Joint Committee PJC acceding to six months of transitional arrangements, ending on 31 December.
However a dissenting report issued by the Coalition members of the PJC has recommended a further 12 months' deferral of the TASA recommendations.
In doing so, the Coalition's dissenting report said a 12 month delay was necessary to enable the orderly consideration of outstanding issues and "ensure all those impacted by the regulation changes have at least the opportunity to comply with them".
"Without such an extension, financial planners will be even worse off: they will face an obligation to be registered as full tax agents from 1 July 2013, with no transition, as the current exemption for planners in the regulations ends on 30 June 2013," it said.
The majority PJC received a frosty welcome from the financial services industry with the Financial Services Council describing it as "inadequate".
FSC chief executive, John Brogden, said the PJC had recommended no changes to the legislation at all despite very clear evidence from the FSC, Association of Financial Advisers and the Financial Planning Association that the legislation "will create havoc for financial advisers."
He said the FSC would now push ahead with attempts to have the legislation amended in the Parliament by the Coalition and independents.
AUTHOR
Mike Taylor
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