New Regulations Clarify the Coverage
of the Tax Agent Services Regime
The Assistant Treasurer, the Hon Bill Shorten MP, today announced new regulations that clarify the coverage of the national tax agent services regime.
The tax agent services regime, established by the Labor Government, has replaced six state-based Tax Agents Boards with one simple, standard national system. The new national tax agent services regime came into effect on March 1 this year.
"The new regulations clarify how 'in-house' advisors and custodians are treated under the national tax agent services regime. Certain services, provided within a consolidated group, stapled entities, partnerships and joint ventures, will now be exempt from the definition of 'tax agent service' and 'BAS service', which will reduce the regulatory burden on those types of businesses," The Assistant Treasurer said.
"As part of these new regulations we have also deferred the application of the national tax agent services regime until 1 July 2011 for the estimated 18,000 financial planners currently operating in Australia. This extension allows extra time to consult about the upcoming options paper on the treatment of financial planners under the tax agent services regime."
The new regulations will also require recognised tax agent or BAS agent associations to notify the Tax Practitioners Board of any change of circumstances that would impact on their ongoing recognition by the Board.
"The Government has listened to the concerns raised during the public consultation on the exposure draft regulations, and wishes to thank all those who made a submission," Mr Shorten said.
"We expect to release the options paper for further consultation towards the end of November 2010 and I encourage financial planners and other affected parties to make submissions," he said.The changes are contained in Tax Agent Services Amendment Regulations 2010 (No. 1).
1 November 2010