The Institute of Public Accountants, (formerly National Institute of Accountants), has expressed concern about the lack of funding in the 2011-2012 budget for the increases in regulatory oversight planned by the Australian Government.

 

Chief Executive Officer of the IPA, Andrew Conway, said that while massive increases the regulatory role of the Australian Securities and Investments Commission (ASIC), the Australian Taxation Office (ATO) and Tax Practitioners Board (TPB) had been announced, the budget had failed to provide funding to ensure those reforms could be carried out.

 

“The accounting profession has supported the Future of Financial Advice Reforms (FoFA) and Stronger Super based on the assumption that the regulators, particularly ASIC, would have the dollars to implement their roles,” Mr Conway said.

 

He said, however, that the lack of adequate funding for the regulators could put taxpayers at risks.

 

“ASIC, for example, is going to have to license thousands of accountants to provide superannuation and other types of financial advice for the first time, register thousands of SMSF auditors, bring financial planners who provide tax advice into line with TPB requirements all while increasing oversight of the markets.

 

“Apart from some funding for specific projects, ASIC’s overall resourcing will be cut by approximately 10 per cent (see Budget Paper No 4 page 251). The amount of $2.8 million for registration of SMSF auditors is insufficient given the enormous task of implementing these changes. Up to 10,000 auditors may have to be registered under these measures.

 

"The Government will be dependent on the assistance of the profession to make these measures work. ASIC is not a magic pudding where more and more can be asked of it, without funding. The same applies to the ATO and TPB who oversee tax reforms, tackle tax schemes and raise the standards of tax practitioners.”

 

Mr Conway said that taxpayers, those relying on the regulators to do their job to protect them, would be the real losers.

 

The Institute of Public Accountants was formally launched on budget night as a rebranding of the National Institute of Accountants.

 

Announcing the Institute’s new identity, Mr Conway said that the term ‘Public Accountant’ was globally accepted to denote a qualified professional in the accounting sector, and would help members to receive recognition for their masters-degree equivalent qualification. He said the change, supported by over 94% of  the Institute’s membership, was more than simply a name change.

 

“Two thirds of the Institute‟s 22,000 members work in or with small-to-medium sized businesses. Our members will continue to support the backbone of Australia‟s economy – small and medium businesses who are often under-represented. The Institute will be advocating for these SMEs to reduce the red-tape burden and working with them to help them grow.”