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Certainty for consumer protection welcomed

Publication date: 20 Jun 13 | Source: THE TAX INSTITUTE

Thursday 20 June 2013: Today’s agreement to legislate consumer protection certainty for people receiving tax advice from their financial adviser is a welcome outcome, said The Tax Institute.

“Tax professionals welcome today’s agreement between the Government and the Coalition, which will ensure that legislative certainty for consumer protection is achieved before the 43rd Parliament rises for the final time,” said Tax Institute President, Steve Westaway.

Following an inquiry by the Parliamentary Joint Committee on Corporations and Financial Services, the Committee recommended both some minor changes and that the legislation be reintroduced and passed by Parliament.

“The Tax Institute has worked tirelessly for legislation that will ensure consumers of tax advice received from financial advisers have appropriate protections in place,” Mr Westaway said.

These important reforms have been in development for more than three years. 

“The measures ensure that financial advisers meet appropriate professional and ethical standards. They also lay the foundation to ensure that financial advisers have the educational qualifications and experience to be able to advise people about their investments and tax consequences. 

“They will allow the Tax Practitioners Board to apply the existing strong regulatory framework to the provision of tax advice by financial advisers,” Mr Westaway continued.

Whilst welcoming the agreement to legislate, The Tax Institute expressed disappointment at the further delay in the start date. 

Mr Westaway said, “We are disappointed at the deferral of the start date of these reforms for yet another 12 months.  This is the fourth delay to the start date of these 2010 reforms, with the new law now taking effect on 1 July 2014.” 

“Over this period, we look forward to working with the Government to ensure that financial advisers have sufficient experience and educational qualifications in tax such that the true intent of the law is fully realised.” 

ENDS

Contact: 

  • Robert Jeremenko, Senior Tax Counsel, 0468 987 300