Today’s announcement by the Parliamentary Secretary to the Treasurer Chris Pearce has been welcomed by the Institute of Chartered Accountants in Australia who believe the Government’s consultation and continued focus on reducing the regulatory burdens is critical for the prosperity of Australia’s economy. 
 
Since last year, the Institute has been calling for an end to onerous red tape and over the past year has worked closely with Government to provide feedback on its interim response to the report on reducing regulatory burdens on business, Rethinking Regulation.  
 
The Institute of Chartered Accountants’ General Manager Standards and Public Affairs Bill Palmer said it is heartening that the Government is treating red tape as a serious issue. 
 
“The Government’s move to reform threshold tests for large proprietary companies will provide a welcome break to many smaller companies. We hope to see it happen quickly so businesses can enjoy the benefit during the 30 June 2007 reporting period,” Mr Palmer said. 
 
“The next step for the Government is to provide relief for very small non-listed businesses such as local sporting clubs,” he said. 
 
As part of the process, the Government also assessed the Financial Services Regulations with a view to making it easier and more user friendly. The Institute supports the Government’s policy objectives of continued protection for consumers and minimising compliance costs. In doing so, it has taken on board a number of the issues raised by the Institute relating to the affordability and accessibility of the provision of financial advice.  
 
The Proposal papers indicate the Government’s intention to ensure consumers access to useful advice is not limited by advocating an exemption to the requirement of a Statement of Advice where no product recommendation and no remuneration is received.