Financial Adviser Professional Standards and Exam
Treasury has released draft legislation intended to refine the education and qualification framework for Financial Advisers. In particular, it will fulfil the Government’s election commitment to better recognise the experience of long-serving advisers.
Under the current law, existing Financial Advisers must complete an approved qualification by 1 January 2026 to meet the qualification standard. They must also pass the Financial Adviser exam and comply with CPE requirements.
The draft legislation would deem an adviser to have met the education requirements if they:
- have 10 years (cumulative) experience providing advice between 1 January 2007 and 31 December 2021; and
- have not recorded any disciplinary action on the Financial Advisers Register before 31 December 2021.
To be considered an experienced Adviser, the Adviser must still pass the exam.
There are also changes to the education requirements for new entrants. In addition, Financial Advisers who are also registered tax agents will not be required to meet the additional requirements to be a qualified tax relevant provider (ie. as the current law requires).
Comments due by 3 May 2023. The changes will commence the day after the amending legislation receives assent.
Personal Superannuation Contributions: ATO draft instrument
The ATO has released a Draft Legislative Instrument proposing to use the Commissioner’s Remedial Power (CRP) to modify the “work test” under s 290-165(1A) of the ITAA 1997 to deduct personal super contributions.
The Exposure Draft – Taxation Administration (Remedial Power – Work Test for Personal Superannuation Contributions) Determination 2023 (Draft LI 2023/D11) proposes to modify s 290-165(1A) to ensure that individuals aged 67-75 who are “employees” under the expanded meaning in ss 15A(2) to 15A(10) of the SIS Act can continue to deduct a Personal Super Contributions as if the work test had not been relocated from the SIS Regs to the ITAA 1997 in 2022. The proposed modification will ensure that such “covered persons” (eg company directors, constitutional or statutory office holders, parliamentarians and ADF members) who may not otherwise be common law employees under the ITAA 1997, are capable of meeting the “work test”, provided that they otherwise meet the relevant criteria.
Date of effect: 1 July 2022.
Comments are due by 5 May 2023.
SMSF auditor competency standards: class order repealed
ASIC Superannuation (Repeal) Instrument 2023/222 repeals ASIC Class Order [CO 12/1687] which contained competency standards for approved SMSF auditors. ASIC considers that CO 12/1687 is no longer required as the relevant auditor knowledge requirements are covered by the applicable AUASB standards and APES 110.
Taxable Payments Annual Report (TPAR)
For individuals providing ride-sharing or accommodation services, it’s important to be aware that electronic platform operators will soon be required to provide information on transactions made through the platform to the ATO – from 1 July 2023 for ride-sourcing or short-term accommodation services, and from 1 July 2024 for all other reportable transactions. The ATO will be expecting taxpayers to declare such income in their tax returns.
Source: IPA Australia
