In the industry body’s submission, seen by ifa, FPA general manager, policy and conduct, Dante De Gori presented a number of recommendations to the 2014/2015 federal Budget, arguing that the proposals would “effectively deliver good social policy outcomes by improving the long-term financial security of all Australians”.
Among the recommendations is a call for tax-deductibility of financial advice fees.
While the FPA and other organisations have called for government-backed incentives for many years, the FPA Budget submission uses recent developments in the industry as evidence of appropriate timing for the introduction of such a policy move.
“Including financial planners in the Tax Agent Services regime, and the banning of commissions on financial advice, set the right environment for the introduction of tax deductibility of financial advice fees,” the submission states.
More broadly, the submission argues that “quality financial advice” can “reduce financial and social exclusion for consumers and help them navigate the financial marketplace and learn how to better manage their finances providing them with dignity and peace ofmind throughout their life”.
The submission argues that this would assist the government in fulfilling its “obligation to address the substantial issues of financial and social exclusion by helping consumers gain access to expertise to help them navigate the financial marketplace”.
More to come
Why can’t we have tax deductibility AND shorter SOAs? Dream big!
Can’t see a $2500 SOA fee being fully deductible I’m afraid. Perhaps a maximum of $1000. Get rid of ridiculous 60 page SOAs first, then we can discuss deductible fees based on advice and not butt protection…..because as you would know fees for butt protection is not advice.
Be careful in what you wish for.
Our industry has been very critical of the last government for singling us out for special attention (In a bad way). At last we have a government prepared to listen and regulate more prudently.
Consider, if you would, a world in which financial advice fees are granted special taxation consideration.
Do our actions leave open an equity argument from every other profession? And what of the ATO to managing a loss of revenue. Will they wish to take closer interest in our charging structures such that we could be under greater scrutiny or perhaps our fee structures may be regulated or even capped under such a proposal.
The FOFA amendments are far from settled. Perhaps this is the bigger picture for the moment and those with the time should be focussed on the mildly sympathetic ear of the present government rather than tossing them problematic issues.
It’s well and truly due. Perhaps tax deductibility for fee for service but not commission based fees? A further incentive to professionalize the Industry. Tax deductibility is common sense really and would help those of us trying to encourage people to obtain good, quality advice.
Fantastic news! Well done FPA, let us know if and when we should Lobby MPs to get this legislated!
Wow..a step in the right direction.
Maybe we will at long last get a common sense decision from the government in regards to this. This decision has the potential to lead to a more financially aware society by lowering the overall cost and therefore increasing the accessibility of advice to the normal person. Which can only be a good thing for us all.