Planner tax exemption extended

The current exemption of financial planners from the tax agent services regime has been extended to 30 June, 2012, Financial Services Minister Bill Shorten (pictured) has announced.

The extension will allow for the regulatory model to be developed, with legislation to commence on 1 July, 2012, Shorten said in a statement.

A meeting between representatives from the financial planning, tax and accounting bodies, the Treasury, the Tax Practitioners Board and the Australian Securities and Investments Commission (ASIC) agreed on a broad set of principles concerning the regulation of financial planners who provide tax advice.

The consultation group also agreed that planners and consumers should interact with ASIC in relation to financial planning services as far as practicable, and that planners would be required to be registered through ASIC with the Tax Practitioners Board to provide tax advice within the context of providing financial advice.

The group also agreed the scope of services that could be provided by planners should be scaled and based on the type of registration held; planners registered to provide tax advice would also need to abide by tax specific obligations that currently apply to registered tax agents; and planners wishing to attain the additional registration should have sufficient tax competencies and qualifications.

A transitional framework would operate from 1 July, 2012 that would enable new and existing planners to be eligible for a simple initial registration for three years, Shorten said.