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A New Regulatory Framework for Financial Planners Providing Tax Advice – Regulation Impact Statement – the Treasury

On 22 October 2012 as a part of the Mid-Year Economic and Fiscal Outlook measures, the Treasurer announced that financial planners who provide tax advice will be subject to the requirements of the Tax Agent Services Act 2009 (TASA). The TASA had previously only applied to tax advice provided by tax agents and Business Activity Statement (BAS) agents. These changes provide that financial planners who offer tax advice must meet certain education and experience requirements; meet a fitness and propriety test; and follow an industry code of conduct. These requirements are to be introduced over a three-year period, commencing on 1 July 2013. It is expected that consumers who use tax advice provided by financial planners will benefit through increased protection. The costs of these measures will be borne by financial planners, or those businesses which employ them. The main cost is likely to be associated with the education and experience requirements. The Regulation Impact Statement was prepared by the Treasury and assessed as adequate by the Office of Best Practice Regulation.