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Showing posts from April, 2013

New regulatory framework for financial advisers

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The end of the financial year will soon be upon us with many law changes set to start on 1 July 2013. One of the most significant of these law changes is the new regulatory framework to apply to financial advisers who provide tax advice.

Since the Tax Agent Services (TAS) regime began on 1 March 2010, an exemption has been in place to permit financial advisers to continue to provide tax advice in the course of providing financial planning advice without complying with the TAS regime.

The Tax Institute has long held the view that financial advisers who provide tax advice in the course of providing financial advice should be subject to the TAS regime on the basis that it provides a mechanism for the protection of consumers of tax advice.

With the exemption due to expire on 30 June 2013, the Government recently released the "Creating a regulatory framework for tax advice (financial product) services" Exposure Draft.

As the Exposure Draft amends the Tax Agent Services Act 2009 to…

Tax debate won’t win election

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We continue our efforts to foster reviewed debate on our tax system, in particular ensuring GST is part of the debate. We acknowledge that such a debate now is not an election winner, but we are hopeful that the new parliament, whom ever that may be, will take the opportunity to start renewed discussion on the issue.

We need to find ways to maintain internationally competitive tax rates yet fund government policy objectives. I’m not here to push a barrow on what the government should or shouldn’t spend money on, that’s for voters to decide. What concerns me is the impasse between state and federal governments. We need to have a debate. We need alternatives explored.

In this regard I notice the comments made by Mr Richard Court AC at our National Convention in relation to the expected tax revenue to be generated by the LNG projects in Western Australia and how they could be used to bridge the gap between state and federal government. This may or may not be an answer but unless it is ex…

We reveal your election priorities

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Last week The Tax Institute released the results of our member survey of election priorities. Thank you to all members who took the time to share their views.

We conducted an extensive media campaign to promote the results of the survey and we will continue to represent members’ interests in improving the tax system with key political stakeholders.

The question posed in the survey was: "With the federal election date set for 14 September 2013, what are the top three tax issues you regard as the most important for our political leaders to address?"

The responses show that the overwhelming priority amongst members is an equitable and sustainable superannuation system for the long-term. While the responses were gathered prior to the Government announcing its intended reforms to superannuation earlier this month, it is clear that if the superannuation tax system is to be changed, members want a real long term, sustainable plan for reform, not mere tinkering around the edges. Whe…

Online membership renewals

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2013-14 membership renewal

Being a member of The Tax Institute means you have demonstrated a strong level of technical knowledge of the tax system and the highest level of ethical and professional conduct. It is this “mark of expertise” which sets members of The Tax Institute apart.

I invite all members to maintain this mark and renew your membership online. All online renewals made on or before 14 June 2013 will go into the draw to win one of five $1,000 cash prizes in a Day to Day Account with HSBC Bank Australia.

Member survey findings

To ensure that we continue to be responsive to members’ needs, The Tax Institute once again participated in the Annual Business and Professions Study run by Beaton Research and Consulting. This survey measures member satisfaction, engagement, and the overall performance of the Institute, and benchmarks the Institute against other associations in the market.

Key findings suggest that the Institute continues to be a strong performer against other associ…

Reform of excess superannuation contributions

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The Federal Government’s announced superannuation changes are far from the major changes that were being road tested through the media in recent months.

While some of these changes are welcome, sustainability and equity in the system can only result from a long-term, holistic plan. When Governments tinker with the superannuation system it risks harming people's confidence in the system and in putting their hard-earned money aside to save for their retirement.

Turning to the Government’s announcement, it includes an acknowledgement of the long-held concerns of tax professionals with respect to the tax treatment of excess concessional superannuation contributions.

The Tax Institute has been a strong advocate for reforming the excess superannuation contribution laws so that inadvertent breaches of the contributions caps are not unfairly penalised. The current system is extremely and unnecessarily punitive. The proposed reforms will prevent most well-meaning taxpayers from being caught…

Voicing Institute concerns to Parliament

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Well, celebrations have started for our 70th anniversary. We are the mark of expertise. We are the leading professional body in tax and we are 70 years young. What a future we have. I am so proud to represent The Tax Institute.

Robert Jeremenko and myself have just spent time visiting various Federal Members of Parliament, Senators and their advisors to convey the Institutes’ concerns on a number of tax issues. We were thankful for the time given to listen to our issues and will continue to foster debate and, hopefully, change in respect to an ever growing list of issues. Robert Jeremenko’s updates will keep you posted on the Institute’s activities in this regard. I was pleased to hear, during our conversations in Canberra, how well respected the Institute is.

Our annual conference has come and gone. Thank you to all who participated. I recommend a visit to our website to access the papers presented. I’m sure these will be used as a standard reference source for members as the quality…

Tax transparency: benefit or risk?

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Last week the Federal Government released a discussion paper on three transparency proposals, including the public disclosure of taxes paid by corporate entities with an annual income greater than $100 million.  Disclosure will include the company’s name, ABN, total income, taxable income and tax payable.

Australia’s current international tax rules are based on out-dated concepts of source and residence. It is important that the Government focuses on revising our international tax rules in conjunction with our major trading partners to make sure that Australia collects an appropriate share of corporate tax.

Tax transparency may assist revenue authorities and policy makers to stay ahead of the curve. It may also better inform the Australian public.

However, tax transparency also risks causing widespread confusion.

By simply disclosing headline income and tax numbers, companies that have acted legitimately risk being unfairly tarred with the tax avoidance brush unless the Government ful…

Global Leaders in Tax meet in Australia

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Last month, on 19 March 2013, Chartered Tax Advisers from The Tax Institute’s sister bodies in the UK and Ireland joined some of our own CTAs in Sydney for an exclusive networking event.

The event was hosted by KPMG and provided CTAs with the opportunity to hear from leading tax experts on the latest hot tax topics in Australian direct and corporate tax.

A great night!






Do you want to receive specialist recognition for your skills and attract new clients? Join The Tax Institute and become a Chartered Tax Adviser (CTA) to gain recognition in your field in Australia and overseas.

Why are we delivering a course in commercial law?

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We interviewed Dale Pinto, CTA, the Professor of Taxation Law and Head of the Department of Taxation at Curtin Law School, the Chair of The Tax Institute’s Education, Examination and Quality Assurance Board, and board member of the TPB (2009 – 2012) (got all that?!) to present his views on why commercial law is critical to developing skills for tax professionals.

In the video, Dale also discusses the content and structure of the course, and what makes the Institute’s commercial law unique.

Approved by the Tax Practitioners Board (TPB), The Tax Institute can help you meet your specific education needs for registering as a tax agent with our new Course in Commercial Law.

Will you meet your CPD requirements before 30 June?

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With 30 June fast approaching, we’d like to remind all voting members of your CPD obligations.

It is vital to ensure that you maintain your professional status by keeping up to date with all the developments in the tax system. CPD ensures that you stay abreast of all of the developments in the tax system to maintain the highest level of technical knowledge.

We have expanded our CPD offering using the latest technology to make it as easy as possible for you to meet these obligations. Download the CPD booklet to find out all the different ways you can meet these requirements.

Tax Knowledge eXchange – now with up to 17 CPD hours

To support members in meeting their CPD obligations, we have now added CPD to our online knowledge base, the Tax Knowledge eXchange. This is a simple way to keep up to date with the latest developments in tax and take care of up to 17 hours of your CPD requirements. Find out more about the service and register for your free trial on our website.

Course in Commercia…

Reviewing Division 7A

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As members have told me consistently, Division 7A has been a bugbear almost since its introduction into Parliament in 1997. As with many well-intentioned integrity measures, the ensuing years have resulted in ongoing tinkering and a continual game of catch-up. The result is our current Division 7A, which is riddled with significant complexity, unintended consequences and inappropriate or punitive application.

We welcomed the Assistant Treasurer’s announcement at our Annual NSW Tax Forum last year, that the Board of Taxation would be undertaking a post-implementation review into Division 7A. You can view our submission in response to the Board’s Discussion Paper.

In our submission we note that the underlying policy rationale of an integrity measure such as Division 7A remains relevant in our tax system of differing marginal tax rates. In order to fulfil this policy rationale, the operation of Division 7A should be restricted to the identified mischief. That is, only profits that are pa…