- The TPB proposes tax (financial) advisers should be able to use relevant ATO client information to better assist clients
- The Joint Bodies are supportive of the proposal in principle
- Further work is necessary to refine the proposal to include only a more targeted set of services that have clear consumer and efficiency benefits
CPA Australia, Chartered Accountants Australia and New Zealand, Institute of Public Accountants, the Financial Planners Association and the SMSF Association, the Joint Bodies, submit their comments to the Tax Practitioners Board (TPB) on the Tax Agent Services (Specified Tax (Financial) Advice Services) Instrument 2020 (the draft LI). Our submission supports the proposition that tax (financial) advisers should be able to utilise relevant client information from the ATO to better assist clients, however the breadth and extent of some of the services proposed under the draft LI raises concerns:
- When introduced, the tax (financial) advice regime was not intended to broaden the range of tax services that could be provided by financial advisers. Any additional services must therefore be shown to be of a kind usually given by a financial services licensee or a representative of a financial services licensee in the course of giving advice, and should be more clearly defined in the draft LI.
- The education and experience requirements for registration as a tax (financial) adviser are established based on the definition of tax (financial) advice at the beginning of the registration period. Expanding the range of tax (financial) advice services may require amendments to the education and experience requirements.