TASA bill set for tabling this week
Financial planners are now facing the full impact of the Tax Agents Services Act (TASA) legislation in the aftermath of failed moves to have the matter reviewed by a Parliamentary Committee.
The committee's decision not to review the legislation means that the Assistant Treasurer, David Bradbury, can move on the issue as early as the resumption of business in the House of Representatives tomorrow.
Both the Financial Planning Association (FPA) and the Association of Financial Advisers (AFA) have expressed deep disappointment at the Parliamentary Committee's decision not to review the matter.
Both organisations are now calling for the financial planner elements of the legislation to be removed.
FPA general manager, policy and standards, Dante De Gori said the FPA was disappointed that due process for a committee inquiry would not be followed.
"There are still many outstanding details and a number of issues unresolved," he said. "The FPA is calling for TASA to be removed from the Tax Laws Amendment (no 2) Measures Bill 2013 and allow industry and Treasury more time for consultation."
AFA chief executive Brad Fox claimed that in the absence of such a committee review there was a serious risk the legislation would have serious unintended consequences.
"While the AFA accepts that financial advisers will come under the TASA regime, we are deeply concerned about the way it is being done and the timeframe in which it is being implemented," he said. "We also continue to have significant concerns about the way the legislation has been drafted, specifically the definition of ‘tax (financial) advice services'."
Fox said the AFA would be seeking that those elements of the TASA legislation that pertain to financial advisers be removed from the bill and be deferred for six to 12 months to allow appropriate industry consultation.
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