The Association of Superannuation Funds of Australia (ASFA) has broadly supported the Tax Agent Services Act (TASA) but has recommended more explanatory material be provided for the benefit of financial advisers.
In a submission to Treasury, ASFA said given TASA is new territory for licensed financial advisers, the explanatory material should better explain the registration process.
"Specifically, it is important for new entities to understand whether and in what circumstances - in addition to the company/partnership being registered and paying a registration fee - it is necessary for individual employees of the entity to also register with the Tax Practitioners Board in their own right and pay a registration fee," ASFA stated.
Information is also required as to whether that registration can be undertaken by an employer on an individual's behalf, according to ASFA.
ASFA recommended that the Tax Practitioners Board identify and advise of the subject matter that will make up the Australian tax law educational component for tax (financial product) advisers "as a matter of urgency".
ASFA also recommended the regulations be worded to provide flexibility in how the Australian tax law educational component can be delivered.
Government and Tax Practitioners Board representatives should consult with industry associations and financial advice educational service providers on appropriate and acceptable course structures and content, and the CPE requirement should be a lesser number of hours than that currently set for tax agents and BAS agents, ASFA stated.
ASFA also identified other areas of the explanatory memorandum that required greater clarity.
Specifically, more detail is needed on how applicable registration requirements are to situations in the superannuation industry, where access to financial advice is a benefit of fund membership and is not separately charged for. ASFA also asked for the use of an example.
ASFA asked for greater clarity on the applicability of the penalty provisions around advertising to superannuation funds that do not charge their members a fee for financial advice but advise their members of the availability of such a service.
