Earlier this month an amended version of the proposed Tax Agent Services Act (TASA) legislation passed through the House of Representatives, bringing these changes one step closer to implementation for the entire advice industry.
As part of the amendments, financial planners have been granted a 12 month extension to the commencement date for complying with the laws proposed under the TASA legislation – pushing the commencement date back to July 1st 2014.
Despite the extension, (which was met with mixed reviews from accountants and financial planners alike) the time to act is quickly approaching and those advisers who allow complacency to enter the equation may find themselves left in lurch come 2014.
Once in force, TASA will impact greatly on the level of advice that financial advisers are legally certified to provide their clients surrounding tax matters. All professionals providing tax advice, from accountants to financial planners, must provide evidence that they are competent by meeting the required educational requirements, and be registered as tax agent by the Tax Practitioners Board (TPB).
While I am always supportive of government or industry initiatives which encourage improvements to industry professionalism and the quality of advice given to consumers; I appreciate that the proposed changes will require a sizeable investment in terms of time and money to transition to the new requirements and demonstrate competency by obtaining the required qualifications. All of which is sure to have an impact on the bottom line of your business.
But whether or not you support the ideals or aims of TASA is quickly becoming irrelevant – what really matters moving forward is how well equipped your practice is to move seamlessly into a post TASA environment.
To prepare for the impact of TASA, all advice professionals should now look at their practices and identify how they will be impacted.
Once you determine the impacts, including who needs to be registered with the TPB, make it your business to ensure your staff’s standards are lifted to a level that meets the requirements of TASA. This will ensure your practice is well prepared and assist in providing a smooth transition into the post-TASA environment.
In addition, best practice businesses will now be looking at their peers that already operate dual accountant and planner practices to see what they can learn.
If you are unaware of the qualification requirements under TASA or are unaware as to who may be affected most in your practice, please familiarise yourself with the TPB website http://www.tpb.gov.au.
Barry Lambert is the Non-Executive Chairman of Count Financial Limited. He is also Chairman of Countplus and Class Super and a Director of a number of Countplus owned Accounting Firms.
Barry established Count in 1980 and was also the Founding Director of the industry body ASIFA (now the FPA) in 1982 and was elected NSW President in 1985 and National President of ASIFA in 1988.
