Treasury TASA document proves case for delay
The Financial Planning Association (FPA) has pointed to the release on Friday of a Treasury discussion document outlining the competencies for financial planners under the Tax Agents Services Act (TASA) as providing firm evidence of why implementation of the legislation should be delayed for a further 12 months.
With the Parliamentary Joint Committee (PJC) expected to report this week on its assessments of the legislation, FPA chief executive Mark Rantall pointed out that the Treasury document was at odds with planning industry expectations.
He said the original proposal discussed was for one extra tax unit at university level to be completed during transition, but the Treasury document had lifted this to two.
"The concept that a 30-year-veteran financial planner who has been giving comprehensive and competent advice to his or her clients for all this time — and now may have to go back to university to prove that competency — is absurd," Rantall said.
He pointed to the fact that at least 18,000 financial planners could be affected and potentially 50,000 advisers captured.
"These wide-ranging reforms will have a significant impact which has not been adequately quantified," Rantall said. "Many quality financial planners may well be forced out of business when no consumer detriment has been proven."
He said this was the reason the FPA was maintaining its call for common sense to prevail and for the legislation to be delayed for 12 months to allow enough time for sensible amendments to be negotiated.
"It is inconceivable that we are still negotiating the detail of TASA and yet we are being asked to support legislation that industry has concerns with," Rantall said.
AUTHOR
Mike Taylor
Recommended for you
AFCA has confirmed United Global Capital’s membership of the body will not be extended to accept further complaints, avoiding a repeat of the Dixon Advisory scenario.
Three of Australia’s largest financial advice groups have shared their thoughts with Money Management on whether they would include crypto on their approved product lists.
Shadow treasurer Angus Taylor has vowed to introduce a bill to legislate a raft of financial services reforms if the Coalition is elected.
Money Management examines the share price of financial advice licensees over one year to 31 March, with M&A actions in the final quarter having a positive effect for two licensees.
