Tax Agent Services Amendment Regulation 2012 (No. 1)

Overview

The Tax Agent Services Amendment Regulation 2012 (No. 1) was introduced to address the need for a regulatory regime specifically tailored to registered financial planners under the Tax Agent Services Act 2009. Enacted by the Parliament of Australia, this regulation extends the deferral period for the application of the tax agent services regime to financial planners until 30 June 2013, providing an additional year for consultation and development of an appropriate regulatory model. This extension aims to ensure that the regulatory framework adequately addresses the complexities associated with bringing financial advice within the scope of the tax agent services regime, thereby offering clarity and certainty to registered financial planners during this transitional phase. The regulation is consistent with human rights, as affirmed by the Statement of Compatibility with Human Rights, which confirms that the instrument does not engage any of the rights or freedoms recognised or declared in the international instruments listed under the Human Rights (Parliamentary Scrutiny) Act 2011. The regulation thus aims to balance the need for a robust regulatory framework with the protection of individual rights and freedoms.

Scope and Application

The Tax Agent Services Amendment Regulation 2012 (No. 1) applies to the deferral of the tax agent services regime for holders of Australian Financial Services Licenses, specifically registered financial planners. This amendment extends the current deferral period from 30 June 2012 to 30 June 2013, providing a window for consultation and development of an appropriate regulatory regime for these professionals. The regulation aims to ensure that financial advice can be brought under the tax agent services regime without immediate disruption, allowing for the resolution of implementation issues. This regulatory measure is enacted under the authority of Section 70-55 of the Tax Agent Services Act 2009 and applies nationally across Australia. The Act itself does not specify any particular conditions that must be met before the regulation can be implemented, allowing for a flexible approach in addressing the needs of financial planners within the broader tax framework. The regulation does not contain specific exclusions or exemptions, but rather serves to delay the application of the tax agent services regime to this particular group until the specified date.

Key Provisions

The Tax Agent Services Amendment Regulation 2012 (No. 1) primarily extends the deferral of the tax agent services regime for holders of Australian Financial Services Licenses, specifically registered financial planners, from the original date of 30 June 2012 to 30 June 2013 (reg. 3). This extension is intended to provide additional time for consultation and the development of an appropriate regulatory framework for these professionals. The Act, under section 70-55, allows the Governor-General to make such regulations as are necessary or convenient for carrying out or giving effect to the Act (s. 70-55). Entities governed by this Act, particularly registered financial planners, are required to comply with the extended deferral period, meaning they will not be subject to the tax agent services regime until 30 June 2013. This regulation provides certainty and allows for the resolution of implementation issues that might arise when bringing financial advice under the tax agent services regime. The Act itself does not specify any particular conditions that must be met before the regulation can be exercised, leaving that discretion to the Governor-General as per section 70-55. Under the Legislative Instruments Act 2003, this regulation is recognised as a legislative instrument. Breaches of this regulation or failure to comply with the specified deferral period could potentially lead to civil or administrative penalties, although the exact nature and severity of these consequences are not explicitly detailed in the provided text. Given the regulatory context, non-compliance might attract penalties that align with those stipulated for other breaches of tax-related regulations in Australia, although specifics would depend on the broader legislative framework and administrative guidelines.