Planners face new rules on tax advice
Australia’s key financial planning bodies are expected to give a qualified welcome today to an announcement by the Assistant Treasurer, Bill Shorten (pictured), about new principles covering the provision of tax advice by financial planners.
While media reports have suggested a win for the accounting profession because the proposed new principles will require planners to comply with standards set by the Tax Practitioners Board, Money Management understands the key for the financial planning industry is the continuing primacy of the Australian Securities and Investments Commission.
One industry observer said that if there had been any win on the part of the accountancy lobby, it needed to be measured against the degree to which accountants needed to be appropriately licensed to provide financial advice.
Shorten has signalled he will be announcing the proposed new principles today, which will include a sliding scale of qualifications for planners measured against the level of tax-related advice they are providing to clients.
It is understood that the key for financial planners will be the design of the regulations that underpin the new regime, with a number of further meetings having been scheduled to iron out the workings of the new system.
AUTHOR
Mike Taylor
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