Two major accounting bodies have called for clarification regarding the potential review of the type of superannuation advice accountants can give, as recommended in the final report of the Tax Practitioners Board (TPB) review.
As part of their joint response to the recommendations made in the TPB review, CPA Australia and Chartered Accountants Australia and New Zealand (CAANZ) stated further discussion was required on the recommendation that the government initiate a specific review of the nature of the advice accountants can give in relation to superannuation.
“We note that the recommendation refers to accountants. However, as this is an undefined term, its use may cause uncertainty when considering advice and services that can be provided or any potential review,” CPA Australia and CAANZ said.
In addition, they noted their support of the recommendation that a new model be developed for regulating tax advisers in consultation with the Australian Securities and Investments Commission, Financial Adviser Standards and Ethics Authority, TPB and Treasury, in alignment with the recommendation of the financial services royal commission’s final report, while pointing out this proposal also required further discussion.
“We agree that regulatory complexity and overlap should be reduced. This is integral to ensuring consumers and small business have access to affordable professional advisory services,” they said.
“The new disciplinary system for financial advisers in response to recommendation 2.10 of the royal commission has the potential to streamline current regulatory duplication.
“However, further discussion is required to ensure the design of the new system achieves the policy intent while still upholding robust consumer protections.”
The joint submission to the TPB and Treasury is the accounting bodies’ initial response to the final report of the review of the board, which came out in November 2020, ahead of the commencement of consultation on the recommendations in the final report.
“Australia’s tax system is one of the most complex in the world. Therefore it’s important that the community has confidence in the tax profession,” CPA Australia and CAANZ told selfmanagedsuper.
“The recommendations in the TPB report may have a significant impact and, if made hastily, could have unintended consequences.
“That’s why CPA Australia and CAANZ are proposing staggered implementation supported by close and continuous industry consultation.”
As part of its review of the TPB’s operations, Treasury also recommended the registration of financial advisers as tax financial advisers with the board should be automatic unless they opted out.
