12/09/2007
UPDATE – CURRENT STATUS OF THE DRAFT LEGISLATION – 29/8/07
It is going nowhere soon!
There has been much activity and publicity since the closure of submissions in response to the exposure draft (all negative).
The Treasury website www.treasury.gov.au contains a link to the 114 submissions received that are not-confidential.
The submission co-ordinated by the Institute of Certified Bookkeepers in combining with many segments of the Bookkeeper community is found under the contributor “Bookkeeper Industry Group”.
A review of the submissions will provide you with the view that while most agree that reform is required, all submissions are critical of the Exposure Draft and indicate that SIGNIFICANT work is required before the current draft would be considered acceptable. These critics include many organisations who have been involved in the process for the 14 years it has taken to provide an “unacceptable” result. (??)
“..we also believe that significant improvements to the exposure draft legislation and related draft materials are required as detailed..” Joint submission by CPA Australia, Chartered Accountants, NIA
Also from this joint submission is a recommendation in relation to BSP’s that we are not happy with: “Amend the definition of a BAS services so that it is strictly limited to BAS preparation and related compliance issues, and as a corollary discrete independent advice on an indirect tax law can only be given by a tax agent.”
These comments reinforce my impression that many segments of the financial services profession do not understand the types of assistance that Bookkeepers are constantly & competently providing to business. Nor do they know how to work with and assist bookkeepers.
SO WHERE ARE WE AT TODAY
The information from various government discussions indicates that even if the current draft was introduced to parliament in February (refer Assistant Treasurers press release) that its effective implementation date would not be until significantly later in the year (say October 2008?). A rewritten law would require a significant time extensive process even before introduction.
IF: Prepare for the new legislation:
1) The ATO provide Barry and Norm example bookkeepers which determine that bookkeepers who install & use commercially available software in assisting their clients are not in breach of the law. These are valid examples and directions of how you may currently conduct your business. However these examples are not valid under the draft legislation.
Status: Today: Fine Start Date: Stops New world: Not valid
2) Sn 251L(6) (the “Guided by tax agent” section) is the overriding provision that regulates who is allowed to do what. This law survives into the commencement of the new system in that people who comply are permitted to continue to comply and this allows you to continue assisting clients for 2 years after start date & contributes to obtaining your first BSP registration.
Status: Today: Fine Start Date: Fine New world: Helps for 2 yrs Action:
Comply with the Sn 251L(6) guidelines – refer www.icb.org.au
3) If you can’t meet #2 above then meet all the proposed requirements of the new registration system: Certificate IV Financial Services (Bookkeeping) or (Accounting), 1400 hours relevant experience and be a fit and proper person.
Status: Today: Don't jump Start Date: need to apply when possible New world: Fine
Action: It is early days and the draft is a long way from real so don’t jump yet.
