Advice industry associations have welcomed the government’s unwinding of tax measures, including the end of the $2,000 cap on self-education deductibles, saying it will help build industry professionalism.
Both the Association of Financial Advises (AFA) and the Financial Planning Association (FPA) have supported the moves to roll back the previous Labor government’s changes, with the FPA calling it a “win” for education.
“Ongoing education and training is crucial to many professions, and particularly for financial planners coping with an ever-changing legislative environment,” FPA chief executive Mark Rantall said.
“The FPA does not support a capping of education and training, which in all professions is integral to the ongoing trust, confidence and quality of services delivered to consumers.”
“Today’s decision is a win for the education of financial planners and the millions of Australians they provide advice to.”
The AFA also noted the importance of education for the finance sector and that it supported moves to raise industry standards.
“It is time Australia relied less on being the lucky country and we applied ourselves more to becoming the smart country,” AFA chief executive Brad Fox said.
“Investing in self-education is a core element of professional behaviour and should be encouraged, rather than discouraged.”
In addition, both organisations announced support for an end to taxes for individual pension earnings over $100,000.
“The proposal to tax earnings on super assets supporting income streams would have been costly, difficult to administer and would de-incentivise contributions of the superannuation systems,” Mr Rantall said.
“In consultation with our adviser members and other stakeholders, it was obvious that the tax on superannuation earnings over $100,000 would likely cost more to administer than it would earn in revenue,” said Mr Fox. “It was always going to be problematic to enforce.”
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