The federal government has handed Australia's financial advice industry a 12-month extension to its exemption from the taxation agent services regime.
The decision extended the current exemption, which expires on 30 June 2012, by one year and would allow for a smooth transition to the new regulatory regime, Assistant Treasurer David Bradbury said late yesterday.
The 12-month extension marks the second such move for financial planners, with former assistant treasurer Bill Shorten providing the industry with an extension in April last year.
The extension would bring taxation advice provided in the context of financial product advice within the scope of the Tax Agent Services Act 2009, Bradbury said.
The extension was granted after consultation with representatives from the financial planning, tax and accounting bodies, the Tax Practitioners Board and ASIC, he said.
"This will allow for the details of the regulatory model to be settled and ensure resolution of implementation issues associated with bringing financial advice under the scope of the tax agent services regime," he said.
"The new regulatory arrangements will focus on the principles of consumer protection and the delivery of quality taxation advice by financial advisers who offer this as part of their financial product advice services."
Commenting on the extension, FPA policy and government relations general manager Dante DeGori said: "We believe this extension is a sensible approach that will allow the government to have all details in place before financial planners are expected to transition to the tax agent services regime."
The government will consult further on these changes before they take effect on 1 July 2013.
