Tax Bill restricts access to advice: FPA
Jo-Anne Bloch
Proposed legislative changes under the Tax Agent Services Bill could restrict financial planners from providing advice on certain taxation issues, thereby restricting consumer access to advice, according to the Financial Planning Association (FPA).
The draft Bill requires planners to undergo additional registration and training to become registered tax agents to provide even very straightforward financial planning advice, such as salary packaging, tax deductibility of super contributions, co-contribution eligibility and lump sum death benefit provisions.
FPA chief executive officer Jo-Anne Bloch said the additional compliance costs would ultimately be borne by the end consumer and that taxation was a fundamental part of the financial planning process.
“A financial planner must take into account the consumer’s individual circumstances and financial position, including tax implications, in order to provide adequate and appropriate advice which helps the consumer make informed financial decisions,” she said.
According to Bloch, the Bill was inconsistent with the Government’s agenda for deregulation and the provision of affordable advice.
The FPA has made a submission to the Treasury recommending that the draft Bill be amended to ensure the principles relating to financial planning advice in the current regime are maintained.
Recommended for you
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With wealth management M&A appetite only growing stronger, Business Health has outlined the major considerations for buyers and sellers to prevent unintended misalignment between the parties.
Industry body SIAA has said the falling number of financial advisers in Australia is a key issue impacting the attractiveness and investor participation of both public and private markets.
