Tax Agent Services Amendment Regulations 2011 (No. 1)

Overview

The Tax Agent Services Amendment Regulations 2011 (No. 1) were issued under the authority of the Assistant Treasurer and Minister for Financial Services and Superannuation, pursuant to the powers conferred by the Tax Agent Services Act 2009. This legislative instrument was enacted to address the need for a more tailored regulatory approach for registered financial planners who provide tax agent services, aligning with the broader reforms in the financial advice sector. The primary objective of these regulations is to extend the deferral period for the application of the tax agent services regime to registered financial planners, moving the deadline from 30 June 2011 to 30 June 2012. This extension facilitates further consultation and the development of an appropriate regulatory framework that considers the unique aspects of the financial advice industry, ensuring that registered financial planners have adequate time to adjust to new regulatory requirements while maintaining compliance certainty.

Scope and Application

The Tax Agent Services Amendment Regulations 2011 (No. 1) pertain to the Tax Agent Services Act 2009, specifically extending the deferral of the tax agent services regime application to holders of Australian Financial Services Licenses (registered financial planners). This deferral, which was initially set to expire on 30 June 2011, has been extended to 30 June 2012 to allow for further consultation and development of an appropriate regulatory framework for registered financial planners who provide tax agent services. The extension is a strategic measure to ensure that comprehensive and well-informed regulations are established in light of the broader Future of Financial Advice reforms. These Regulations aim to provide certainty to registered financial planners while the consultation and development processes are underway. They are made under the authority granted by Section 70-55 of the Act, which allows for the prescription of matters necessary for the Act's effective implementation, and they specify services that are not considered tax agent services under Section 90-5. The Regulations will come into effect on the day following their registration on the Federal Register of Legislative Instruments, as per the Legislative Instruments Act 2003.

Key Provisions

The Tax Agent Services Amendment Regulations 2011 (No. 1) extend the deferral of the tax agent services regime to holders of Australian Financial Services Licenses (registered financial planners) until 30 June 2012. This is an extension from the previous deferral date of 30 June 2011, as provided under section 90-5 of the Tax Agent Services Act 2009 (the Act). The extension aims to allow for further consultation and development of an appropriate regulatory regime specifically tailored to registered financial planners. Given the significant scope of the Future of Financial Advice reforms, it is deemed essential to undertake adequate consultation before imposing regulatory requirements on registered financial planners who also provide tax agent services. This period of deferral is intended to ensure that any new regulatory measures are well-informed and appropriately designed. Under these Regulations, the obligations for registered financial planners remain largely unchanged, except for the extended deferral period. Registered financial planners who are also tax agents are temporarily exempt from the full application of the tax agent services regime. This exemption provides certainty to these professionals during the consultation and development phase of the new regulatory regime. They are, however, expected to comply with all other relevant legislative and regulatory requirements applicable to their financial services activities. The deferral does not exempt them from other obligations they may have under different pieces of legislation, such as the Corporations Act 2001 or the Australian Securities and Investments Commission Act 2001. Failure to comply with the provisions of the Act or the Regulations may result in various consequences. While the Act itself does not explicitly outline offences or penalties for non-compliance with the Regulations, breaches of other related legislative provisions may attract penalties. For instance, non-compliance with the Corporations Act 2001 or the Australian Securities and Investments Commission Act 2001 could lead to civil or criminal penalties, including fines and imprisonment. The specific penalties would depend on the nature and severity of the breach, as well as the particular provisions of the relevant Act that have been contravened. The Act's provisions are designed to ensure that tax agents, including registered financial planners, operate within the legal framework to protect consumers and maintain the integrity of the financial services industry.