FOFA’s ban on commissions has created the right environment for the introduction of tax-deductible financial advice, the Financial Planning Association has argued in a submission to the federal Budget.
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”.
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