FPA targets tax deductible advice for 2022

Tax deductibility of financial advice is one of the key goals for advocacy for the Financial Planning Association of Australia (FPA) as the regulator reviews take centre stage in 2022.

Ben Marshan, FPA head of policy, strategy and innovation, said tax deductibility and access to data were the main major advocacy goals for the organisation in 2022.

“We’ve got our policy platform, which we released in June last year and we’ve had a lot of success – we made 19 recommendations and six of those have now been implemented by the Government,” Marshan said.

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“Because the focus on next will be on regulatory reviews there are a number of recommendations in our platform which will focus on advocating for improvements consumer protections and to the affordability of advice.”

Tax-deductible financial advice was part of the push to help make advice more affordable.

“The two big areas that are we definitely focusing on for next year to try and get some improvements – number one is tax deductibility of financial advice – we’ve been working on that for a few years and next year will be somewhat pivotal in trying to get that implemented,” Marshan said.

“Number two will be access to data – the consumer data right has been implemented and professional gateways have been opened.

“How that works for financial advisers is very important and we’re going to be advocating hard on getting access to the ATO [Australian Taxation Office] portals for financial planners and some form of access to Centrelink data and information for financial planners.”

The association also expected to appoint a new chief executive early next year as Dante De Gori, who announced his departure in July, would finish at the end of this year.




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The FPA has been pushing for deductibility of financial advice for more than a few years and no government from either side has come close to going for it, but good luck with that. The point I want to make is I think the premise is wrong if the argument is about increasing affordability of advice for those who need it most. A tax deduction is worth more in the hands of high income earners. For low and middle income earners a dollar-for-dollar rebate is generally much more valuable. Imagine the benefit of say a capped $2,000 rebate for a low income earner seeking advice that in most modern advice offerings is priced from $2,500 to $4,000, compared to the value of a tax deduction. The client would only get 19 cents for each $1 over $18,200 up to $45,000 taxable income or 32.5 cents over $45,000 up to $120,000. If the strategy is really about increasing access for FPA members to high income earnings and HNW clients, stay with the tax deduction but if it really is about access to affordable advice for those who really need it, then a rebate.

that is a cracker of an idea.

That train left the station 15 years ago. The problem I have is that everything the FPA touches turns to %@$#@#$. Dear FPA member's how's Mr De Gori's recommendation that prior education and a Bachelor's Degree in Commerce should be worth 20 points out of 100 working out for you? Given their track record, perhaps the FPA should stick to selling CFP courses, organizing that annual conference, supplying the cup cakes and that Melbourne Christmas Golf day. Can we leave the real Advocacy for genuine conflict free parties or at least individual planners. Dear Santa...Please tell the FPA to get their house sorted and come back when they're interested in representing planners and Australians.... and not to semi quote Dante, every single participant including the Barefoot Adviser and Hesta...equally. I suspect Treasury knows who pays their bills. If FPA members want real change perhaps FPA members should re consider who they pay their $1,000 a year too....cause that's a lot of money for cup cakes and a Golf day in Melbourne.

Just become a tax accountant and all your work is a tax deduction to the client....

I really don't understand the point of this. Advisers are struggling to deal with the red-tape/compliance overload. Making
upfront or one-off advice tax deductible will achieve nothing except increase the demand for financial advice. But with dwindling adviser numbers and those remaining overworked and stressed, we won't be able to meet that demand anyway. If I was to make a list of the problems I need resolved by Government to improve financial advice and make it more accessible, the tax deductibility of financial advice wouldn't even make my top 100 issues. Besides, ongoing fees are already tax deductible in most cases.

The FPA need to focus on the Liberal government's new taxes - Compensation scheme, ASIC Levy etc and the incredible red-tape.
I'd say the majority of advice is paid from a super fund, so it pretty much is deductible.

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