Fees for Risk Advice More Achievable? Poll

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I’m more likely to consider charging a fee for risk advice following the recent ATO ruling on tax deductibility of advice fees.
  • Agree (54%)
  • Disagree (29%)
  • Not sure (17%)

Our latest poll seeks your view on whether you’re more disposed to now charge a fee for risk advice, following the recent ATO ruling that a portion of your fee is tax deductible for the client.

The ATO ruling in question was highlighted by AIA Australia’s Ben Martin at Riskinfocus 25 events in March, at which he explained it has been assumed until recently that when clients pay an adviser it is a capital expense, and therefore not tax deductible for them.

…a part of that upfront fee is now deductible to the client

Critically, as we report on Martin’s presentation this week (see: Tax Relief for Risk Advice),  he told advisers around the country that in broad terms the ATO tax determination says in some circumstances – particularly if you’re an adviser scoping the risk and charging an upfront fee for the insurance component of your advice – a part of that upfront fee is now deductible to the client.

As we also report in our story, the package of information shared by Martin may offer many advisers and advice businesses the opportunity to reconsider the potential to charge an upfront life insurance advice fee, if they don’t already, to supplement any commission income derived from the result of the advice.

Does this conversation resonate with you? Or do you remain reluctant to charge fees for your life insurance advice?

Cast your vote today and we’ll report back next week. Feel free to also add your comments to this developing narrative…