{"id":63935,"date":"2022-12-20T12:30:23","date_gmt":"2022-12-20T01:30:23","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=63935"},"modified":"2024-10-30T08:43:08","modified_gmt":"2024-10-29T22:43:08","slug":"ato-consults-on-tax-deductibility-of-advice-fees","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2022\/12\/20\/ato-consults-on-tax-deductibility-of-advice-fees\/","title":{"rendered":"ATO Consults on Tax Deductibility of Advice Fees"},"content":{"rendered":"

The decision by the Australian Taxation Office to update its guidance on the tax deductibility of financial advice fees “could be a gamechanger” according to FPA CEO Sarah Abood.<\/strong><\/p>\n

In welcoming the ATO’s consultation process, she says the FPA has long been advocating for broad tax deductibility of both initial and ongoing financial advice fees.<\/p>\n

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Sarah Abood.<\/figcaption><\/figure>\n

\u201cOne of the quickest and easiest ways to make quality financial advice more affordable for consumers, would be to make it tax-deductible in full.”<\/p>\n

Abood says that while the FPA\u00a0 continues to advocate strongly for this outcome with government \u201c\u2026we\u2019ve also been calling out concerns with the ATO\u2019s current guidance on deductibility of advice.”<\/p>\n

…Tax Determination 95\/60 considers an upfront fee paid for an investment plan in 1995…<\/p><\/blockquote>\n

“Tax Determination 95\/60 considers an upfront fee paid for an investment plan in 1995. IT39 reflects an ongoing fee paid on an investment portfolio in 1980.\u201d<\/p>\n

She says much has changed in the profession since then \u201c\u2026and we believe it\u2019s critical that the guidance be updated to consider the personal advice, subject to the best interest duty, that\u2019s delivered by professional financial planners today.\u201d<\/p>\n

\u201cThe ATO\u2019s commitment to issue a new Tax Determination \u2013 indicating its willingness to modernise its long-standing view on this important issue \u2013 will provide more certainty to our members and the broader community of Australians who benefit from comprehensive financial advice.”<\/p>\n

Two critical areas\u00a0<\/strong><\/p>\n

Abood says there are two critical areas of the current Tax Determination it\u2019s keen to see reviewed:<\/p>\n