The FPA is reigniting its campaign to urge the government to make upfront financial planning fees tax deductible in order to attract more Australians to seek advice.
In a submission to the government regarding the 2015/2016 federal Budget, the FPA raised a number of issues including the need to make financial advice more accessible to Australians.
“To do this we recommend changes such as making upfront financial fees tax deductible, similar to how consumers access accountants, giving Australians further incentive to seek financial advice,” FPA chief executive Mark Rantall said commenting on the submission.
“Investment Trends research shows that 30 per cent of consumers who are not interested in seeking financial advice cite high cost of advice as a deterrent.”
“It is clear that policy intervention from the government is key. Making financial advice more affordable for consumers supports the Coalition’s superannuation policy to encourage as many Australians as possible to actively plan and save,” he said.
Along with its Budget proposal, the FPA has also recommended the government engage the Productivity Commission to examine the short-term and long-term position of the Budget if the preparation of an initial financial plan and ongoing fees were tax deductible.
The FPA’s recommendation of tax deductible advice falls in line with a white paper it released in May 2014 where the association outlined a ten-point plan to raise professional standards in the industry.
“Our Budget recommendations go hand in hand with our ongoing advice and policy work around higher education standards and the CFP designation, as well our focus on greater professionalism in the financial planning sector,” Mr Rantall said.
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