New legislation introduced into Parliament today will make sure that consumers have appropriate protections when receiving tax advice from a financial adviser, said Assistant Treasurer David Bradbury.
Under amendments to the Tax Agent Services Act 2009 (TASA 2009), financial advisers who provide tailored tax advice will be overseen by the Tax Practitioners Board to make sure they meet the relevant education, experience and other requirements.
"These measures will give consumers confidence that tax advice they receive from financial advisers is provided according to the highest professional standards," said Mr Bradbury.
The regime will begin on 1 July 2014, with the current exemption for financial advisers from TASA 2009 extended by 12 months to 30 June 2014. There will also be a three-year transition period to allow advisers to prepare for the new regime.
The Government will also provide further clarity that a range of financial services that provide factual information or 'general' tax advice are not part of the TASA regime. As part of this, the Government will further consult with industry on whether there is a need to amend the TASA regulations to provide this clarity and ensure the regime operates as intended.
"This is an important consumer protection reform and I thank all of the stakeholders for their constructive input into the development of this legislation," said Mr Bradbury.