Chartered Accountants Australia New Zealand has welcomed the tabling in the Tasmanian Parliament, of the Professional Standards Amendment Bill 2016.
This Bill will ensure Tasmania will now align with the rest of the nation, by ensuring members of professional associations will be on a level playing field with their interstate counterparts.
Mr Rob Ward AM, Head of Leadership and Advocacy said professional standards legislation was introduced nationally in the wake of the HIH collapse in 2001, which saw some insurance, such as Professional Indemnity cover, almost impossible to secure for professionals.
“The aim of the legislation was to limit the liability of the professionals who belong to a professional association leading to lower indemnity premiums,
“In return for this limit on liability, members of professional associations would be subject to higher standards of practice which it was hoped would in turn reduce cases of poor practice, Mr Ward said.
However, an anomaly saw the Tasmanian Act out of step with the rest of the nation in that Section 27 (c) required the professional association to agree to increase the cap on liability if requested by a member, whereas interstate the association had the right to accept or refuse the cap.
“This anomaly meant that CA ANZ did not apply for a schemes in Tasmania,
“A Professional Standard Scheme means that consumers have protection and can take comfort that high standards will be upheld. It also means better business practices.
“The result of this outcome will mean consumer protection will be there for Tasmanians. Communities and professionals will be regulated and will have to utilise high levels of conduct,” Mr Ward said.
“After many years of dialogue and advocacy it is great to see that the Tasmanian Government has recognised the need to reform this bill,” Mr Ward said.
Rob Ward
