In media release No 2010/009, issued 1 November 2010, the Assistant Treasurer and Minister for Financial Services and Superannuation, Bill Shorten, announced the making, on 27 October 2010, of Tax Agent Services Amendment Regulations 2010 (No 1). The regulations were registered on the Federal Register of Legislative Instruments on 28 October 2010 as Select Legislative Instrument 2010 No 273.
The Regulations amend the Tax Agent Services Regulations 2009 to prescribe services that are not tax agent services and are outside the tax agent services regime permanently or for defined periods, and improve and clarify the drafting in relation to the system of recognition of professional associations.
"The new regulations clarify how 'in-house' advisors and custodians are treated under the national tax agent services regime. Certain services, provided within a consolidated group, stapled entities, partnerships and joint ventures, will now be exempt from the definition of 'tax agent service' and 'BAS service', which will reduce the regulatory burden on those types of businesses," the Assistant Treasurer said.
"As part of these new regulations we have also deferred the application of the national tax agent services regime until 1 July 2011 for the estimated 18,000 financial planners currently operating in Australia. This extension allows extra time to consult about the upcoming options paper on the treatment of financial planners under the tax agent services regime."
"We expect to release the options paper for further consultation towards the end of November 2010 and I encourage financial planners and other affected parties to make submissions," the Assistant Treasurer said.
For a copy of the Explanatory Statement to the Regulations, click on ES/Supp Material here