News of the ATO’s determination (finally!) on how it will interpret the tax deductibility of advice fees in future informs the basis for our latest poll.
As we’ve reported, the ATO’s determination has prompted the FAAA to project that a significant portion of a typical advice fee will become tax deductible for the clients of many advisers and advice practices (see: Significant Portion of Advice Fees Could be Tax Deductible).
According to the peak adviser association, this determination marks a big improvement over the original interpretation applied by the tax office, which did not support deductions for the cost of any components of upfront advice.
The FAA now believes a significant portion of a typical advice fee will be deductible for the clients of many advisers and practices, where one of the flow-on effects, it can reasonably be argued, is that the potential for greater deductibility of advice fees should help make financial advice more affordable and therefore more accessible for more Australians.
Do you support this view? Does this latest development spell good news for your advice business and/or the practice in which you operate?
On the surface, as we’ve already noted, simple logic suggests more Australian consumers should enter the growing pool of those for whom the cost of financial advice will become a more favourable equation.
But it’s your own perspective which counts. Where do you sit on this question? Are you already over the line as a ‘believer’? Or do you disagree or perhaps need more time to see how this ATO determination plays out with the Australian community?
Tell us what you think and we’ll report back next week…
