Australia's financial regulator is consulting on the renewal of a narrow exemption that lets Australian financial services licensees and their authorised representatives provide certain tax-related information about financial products beyond the precise scope of their authorisation. ASIC published consultation CS 67 on 28 October. Its proposal is to remake Instrument 2016/1151 for another five years with minor updates, preserving its practical operation rather than opening a new general tax-advice permission.[1][2]
The instrument is due to expire on 1 April 2027 under the legislative sunset process. Without action to preserve an expiring instrument, firms relying on its modified disclaimer mechanism would have to reassess what they may say to retail customers about the tax aspects of financial products. ASIC says the exemption has been operating effectively and remains useful, making a substantially unchanged remake its preferred approach. That is still a consultation, not the final remade law.[1]
The technical issue is an inconsistency in the underlying regulation. Regulation 7.1.29(4) permits defined limited tax advice without an Australian financial services licence, but its associated warning can be awkward when the person giving advice already holds an AFS licence for other products or is an authorised representative. The 2016 instrument lets those licensed individuals use a modified warning that properly identifies the boundary of what they are authorised to advise on.[1]
Timeline and scope of ASIC CS 67
The exemption does not allow an adviser to promote themselves as generally authorised to give specialised tax advice across every financial product, nor does it waive obligations to avoid misleading descriptions of competence. Where the relevant tax discussion also amounts to financial product advice, the required disclaimer draws attention to the limitations of the individual's authorisation, explains that tax should not be the sole consideration and directs clients toward appropriately authorised advice where needed.[1]
Brokerages offering advisory or wealth services need to distinguish the limited exemption from their actual licence permissions and staff accreditations. A customer-facing conversation about the tax treatment of a trading or investment position can easily stray into a recommendation about holding or disposing of that product. Written scripts, supervision and complaint records should therefore reflect both the tax-advice carve-out and the ordinary financial-product rules that remain applicable.[1]
Timeline and scope of ASIC CS 67
| Item | Documented position |
|---|---|
| Instrument | ASIC Corporations (Recognised Accountants: Exempt Services) Instrument 2016/1151 |
| Current sunset date | 1 April 2027 |
| ASIC consultation issued | 28 October 2026 |
| Response deadline | 25 November 2026, 5 p.m. AEDT |
| Proposed renewal | Further five years with minor updates, unchanged effect |
ASIC invites feedback by 25 November 2026; the consultation page specifies 5 p.m. Australian Eastern Daylight Time. The existing instrument remains the applicable provision until it expires or is replaced. The regulatory development on 28 October is a proposal to maintain existing limited relief, not a new licensing category and not a suspension of the tax obligations borne by investors or financial-services firms.[1]
Sources & further reading
- CS 67: Proposed remake of instrument allowing limited exempt tax advice Australian Securities and Investments Commission · 28 Oct 2026 · Accessed 31 Oct 2026
- ASIC proposes to continue tax advice exemption for licensees Australian Securities and Investments Commission · 28 Oct 2026 · Accessed 31 Oct 2026