FPA joins push on tax deductibility

The Federal Government has again been urged to make the tax deductibility of financial advice an initiative in its May Budget, with the Financial Planning Association (FPA) using its pre-Budget submission to renew its call for the measure.

The FPA's push on the tax deductibility of financial advice fees coincides with a similar call contained in the pre-Budget submission of the Institute of Chartered Accountants in Australia.

However the Government has consistently resisted previous overtures around the deductibility of financial advice and the recommendations of the Henry Tax Review were not encouraging.

The FPA's pre-Budget submission outlined the organisation's three key recommendations to the Government as being a tax deduction being available for the cost of upfront financial planning fees, the removal of the age restriction for making concessional or non-concessional superannuation contributions, and changes to the concessional contribution caps.

At the same time as filing its pre-Budget submission, the FPA is continuing its negotiations with the Government and Treasury with respect to restricting the use of the term 'financial planner' as part of the Future of Financial Advice (FOFA) process.

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FPA general manger of policy and government relations Dante De Gori said the organisation regarded securing agreement around the use of term 'financial planner' as a key objective in the on-going FOFA process.

With the Parliamentary Joint Committee reviewing the FOFA bills having held public hearings in Sydney last week, attention in the FOFA process has now switched to upcoming hearings of the Senate Economics Committee.