TASA ‘rushed and flawed’

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An inquiry in to the Tax Laws Amendment Bill, including TASA, has been rejected by Labor, and Parliament will be voting on the changes today much to the concern of the AFA.

AFA CEO Brad Fox said there had been inadequate reviews of the legislation and that this posed a serious risk of unintended consequences.

“While the AFA accepts that financial advisers will come under the TASA regime, we are deeply concerned about the way it is being done and the timeframe in which it is being implemented,” he said. “We also continue to have significant concerns about the way the legislation has been drafted, specifically the definition of ‘tax (financial) advice services’.”

Fox said the Government has had three years since the TASA regime was introduced to address its application to financial advisers. 

“We have lobbied continually on this issue for several months,” he said. “We do not understand why the Government has left it until the last minute, only one month before the scheduled commencement date to address the issue, particularly given the fact that  financial advisers are already highly focussed on the significant challenges involved in the implementation of the Future of Financial Advice reforms.

“We are also particularly concerned with the lack of detail and regulation or guidance and will be seeking for the TASA legislation as it pertains to financial advisers to be removed from the Bill so that it may be subject to appropriate industry consultation and deferred for six to 12 months.”

FPA policy and Government relations general manager Dante De Gori said it was very much a waiting game now, while the associations wait to see whether the Bill is referred to a Committee for a review.

He said the FPA had been speaking with the Independents, who were all very receptive, and that the Opposition was keen to remove the TASA sections from the legislation, so that it could be reviewed while the legislation could be passed.

  • Peter Johnston - AIOFP on 5/06/2013 12:03:57 PM

    We will put this on the agenda for the ACC to address with Cormann post September 14th. Believe it or not the Gillard Government is not as bad the Whitlam Goverment in 1975 so some old timers advised me recently, how bad must have they been!!

  • Bill S on 4/06/2013 3:07:30 PM

    Changes should be rushed in on top of FOFA so that Union controlled Industry funds continue to benefit.

  • Mick on 4/06/2013 2:29:25 PM

    Thanks Alan,
    You made me laugh and I will join your civil disobedience campaign. If it looked like they would get back in I would be calling for and joining a revolution!

  • Alan on 4/06/2013 11:53:30 AM

    Hey AFA and others, who cares what this shambles of a government which is a "dead man walking" introduces. It will all be reviewed by the new coalition government after September, in the meantime we just ignore it as part of a civil disobedience campaign. Any changes and I certainly will be ignoring them, they are a damn disgrace but what do you expect from that mob.

  • James on 4/06/2013 10:05:53 AM

    I think it's incredible that over 20 years the planning industry has been educating clients and facilitating a steady stream of capital into (amongst other things) the complex superannuation system. For all it's success, the industry is now under constant review by regulators and interest groups who want a bigger piece of action.

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