ASIC financial adviser exam, AML/CTF, privacy and tax (financial) advice question: Subdivision 50-AA of the TASA

ASIC examAML/CTF, privacy and tax (financial) advice

Ella, a relevant provider at Saltbush Advice, is not a registered tax agent. Saltbush charges Tess, 45, A$3,300 for a super strategy that includes advice on whether salary sacrificing A$8,000 a year will cut her income tax. Under Subdivision 50-AA of the TASA, Ella is BEST described as…

A barred: only a registered tax agent may comment on tax
B free to advise: tax comments within super advice fall outside the TASA
C free to advise, provided her SOA tells Tess to confirm the tax position with a registered tax agent
D able to advise only as a qualified tax relevant provider; otherwise a civil penalty applies

Show the answer and explanation

Answer: D. able to advise only as a qualified tax relevant provider; otherwise a civil penalty applies

Section 50-17 of the Tax Agent Services Act 2009 (compilation 1 Oct 2026) imposes a civil penalty of up to 2,500 penalty units on an individual who provides a tax (financial) advice service for a fee or other reward without being a registered tax agent or a qualified tax relevant provider. Advice on whether salary sacrifice cuts Tess's tax, given within paid super advice, is such a service (s90-15; TPB(I) 20/2014). So Ella may give it only as a qualified tax relevant provider. Registered tax agents are not the only people who may advise on tax: relevant providers who meet the s921BB requirements can. Tax advice inside super advice is exactly what Subdivision 50-AA covers. A referral line in the SOA is a disclaimer, and a disclaimer doesn't change the legal outcome.

Common mistake

Relevant providers can give tax (financial) advice; the gate is being a qualified tax relevant provider.

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