FPA seeks exemptions on GST
The Financial Planning Association (FPA) has called on the Federal Government to provide advisers with capital gains tax exemptions while the industry adjusts to the new GST regime.
The Financial Planning Association (FPA) has called on the Federal Government to provide advisers with capital gains tax exemptions while the industry adjusts to the new GST regime.
"For the GST to work, really we have to effectively have major re-structuring," says FPA chief executive Michael McKenna.
But, he says that if restructuring is to occur, the government needs to allow for certain exemptions.
"Capital gains tax could incur (with the current GST) and what we're suggesting to the government is that financial planners should in fact be granted a window of opportunity, where they can restructure their business without incurring a capital gains tax," McKenna says.
The Federal Government is yet to respond to the FPA's call.
"We have sought advice at this stage. We haven't seen any legislation so we are purely under the assumption that the New Zealand model will be one that will be followed by Australia," McKenna says.
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