Tasa Requirements for Financial Planners

The federal Department of Finance has published draft provisions for the Tax Agent Services Act (TASA) and proposed to remove tax and business requirements for financial planners with six years of full-time equivalent experience. The Financial Planning Association (FPA) represents the interests of the public and the Australian professional financial planner community. With a growing membership of over 10,000 members and affiliates, 7,500 of whom are practicing financial planners, FPA is home to Australia`s 5,500 CFP professionals. For all other relevant providers, the AFS licensee must indicate the capacity in which the relevant provider is entitled to provide tax (financial) advisory services. This may include one of the following capabilities: The requirement for financial planners to register with the TPB and comply with the TASA Code and TPB standards will change as of January 1, 2022. These changes differ between the relevant providers who are entitled to advise retail investors and planners who provide general advice or advice to large investors. To update your status as a qualified tax provider and your ability to provide tax (financial) advisory services in the Financial Advisor Register, your AFS holder must use the “Name” and “Wait” functions on ASIC Connect: see question 12. The Better Advice Act also introduces the requirement for the register of financial advisers to indicate whether or not a relevant provider can provide tax (financial) advisory services: see question 10. If you are a relevant supplier and not immediately before 1. January 2022 have been registered with the Tax Practitioners Board as an individual tax advisor (financial advisor), your AFS holder must apply to register you as a relevant provider with ASIC in accordance with level 1: see question 6.

This decision could result in financial planners already meeting parts of the Financial Planning Association`s (FPA) Tax Practitioners Board (TPB) registration requirements. If you have determined that you need to become a provider of tax advisory services, you must ensure that your formal education and experience meets the requirements of the tax authority (which are still ongoing). Persons providing tax (financial) advisory services are required to attend courses in business law and tax law, unless one or more of the following transitional provisions apply: Note: Relevant providers in this category must have completed the above courses in business law and tax law by 1 January 2026 in order to continue providing tax (financial) advisory services. However, if the advice you provide falls into the category of “tax (financial) advisory services”, you must use a disclaimer prescribed by TASA until you inform the tax office or registry. Financial planners may have scored a victory over TASA implementation, but Cecilia Storniolo of the Financial Services Council writes that those affected should make sure they have a good understanding of exactly how they will be affected now. Certain relevant providers are considered qualified tax providers because they were registered with the Tax Practitioners Board as individual tax advisors (financial advisors) immediately before 1 January 2022 or had an application for registration pending with the Tax Practitioners Board on or before 31 December 2021, which was subsequently approved: See questions 4 and 5. If you postpone your registration until January 1, 2016, you must meet all registration requirements. Your AFS licensee will then be asked to indicate in which capacity you are authorized to provide tax (financial) advisory services.

TPB has not yet finalized its CPD requirements, which means that the above requirements may change. TPB uses the term continuing professional development (CPE), while the financial advisory industry generally uses continuing professional development (CPD). The terms have the same meaning. Once you have registered during the notification phase, all your representatives must comply with the TASA Code of Conduct and you must comply with the professional liability insurance requirements. An affected service provider who has been registered as an individual tax advisor with the Tax Practitioners Board immediately before 1 January 2022 will effectively be considered a “qualified tax provider” for an indefinite period from 1 January 2022: see question 5.

About the author

John