From 1 January next year, the single disciplinary body measures in the Better Advice Bill will come into effect.
This includes the transfer of the tax (financial) adviser registration from the Tax Practitioners Board (TPB) to ASIC. The “tax (financial) adviser” status will cease and will be replaced by the new designation, “qualified tax relevant provider” (QTRP).
In an online update, the SMSF Association explained that professionals registered as both a financial adviser and tax (financial) adviser on 31 December 2021 would be deemed to have met the requirements and would not be required to undertake further education to qualify for registration as a QTRP.
However, those financial advisers that are not registered as tax (financial) advisers on 31 December and want to provide tax (financial) advice services will be required to complete additional taxation education, including approved units in commercial and taxation law as prescribed by the minister.
“The final regulations, and approved courses are not yet known and will be determined by the minister via legislative instrument in due course,” the SMSF Association said.
“Under the current tax (financial) adviser regulations, there are four education and qualification pathways. One of these is the Membership of a Professional Association, also known as pathway 304. This pathway will cease and will not be available after 31 December 2021.”
Under the Membership of Professional Association pathway, the SMSF Association said advisers would be deemed to have satisfied the education requirements for registration where they are a voting member of a recognised tax (financial) adviser association or recognised tax agent association and have the equivalent of six years of full-time, relevant experience in the preceding eight years.
“Other registration requirements such as the fit and proper person test will still need to be satisfied,” it said.
The SMSF Association warned that applications to become a member of a professional association should be submitted as soon as possible to ensure they are processed in time.
The membership needs to be approved by the professional association before an adviser can make an application with the Tax Practitioners Board, it said.
