Threemajor industry groups have called for changes to the taxation arrangements for the provision of financial advice in submissions to the Senate Select Committee on Superannuation’s Planning for Retirement inquiry.
TheFinancial Planning Association(FPA), Australian Bankers’ Association (ABA) and theInvestment and Financial Services Association(IFSA) claim the provision of financial planning advice and education is essential for new retirees due to the complex regulatory and investment environment, and they have recommended that impediments to the provision of this advice be removed.
The FPA has recommended the introduction of an investment advice related expense section, similar to the treatment of tax-related expenses in Section 25-5 of the Income Tax Assessment Act (1997), to make the cost of financial planning advice tax deductible.
IFSA’s submission has suggested that commission-based advice be adopted as a means to gain tax relief for the client, rather than fee-for-service where the tax implications are a disincentive to seeking advice.
The inquiry was initiated following the delivery of a report by the Senate Select Committee on Superannuation on superannuation and standards of living in retirement.
Committee chair Senator John Watson says the committee is due to report to the Senate by the last sitting day in June.
