The FPA has voiced concern over Treasury’s proposed changes to its Tax Agent Services Bill, stating alterations to the bill would restrict consumer access to financial planning advice.
In its current form the draft bill would require financial planners to undergo additional registration and training to become registered tax agents in order to provide tax advice, even very straightforward financial planning advice.
“Should the proposed changes be adopted, consumers would need to consult different professionals on connected aspects of their financial needs and would incur additional costs for each separate piece of advice. Access to appropriate consumer compensation would also be uncertain under the proposed changes,” FPA chief executive Jo-Anne Bloch said.
“This is inconsistent with the Government’s deregulation agenda and encouragement for the provision of affordable advice.”
The FPA expressed its concerns in a submission to Treasury. As part of the submission, the FPA has suggested an amendment to ensure the principles relating to financial planning advice in the current regime are maintained.
“There are some significant changes in the works which all relate to the regulation of professional and financial services. The Government is in the process of transferring the regulation of credit to the Commonwealth, there are numerous consultations taking place and there’s a fundamental Tax Review,” Bloch said.
The key areas are salary packaging, tax deductibility of super contributions, co-contribution eligibility and lump sum death benefit provisions, according to the FPA.
