The Financial Planning Association (FPA) has pointed to the confusion around the Government’s multiple changes to insurance inside superannuation to argue that advice is necessary, and that the financial advice be made tax deductible, particularly for those aged under 25.
However, the FPA wants that tax-deductibility limited to “registered financial planners” – something which would result in the exclusion of those not members of the code-monitoring system expected to be implemented as a result of the Financial Adviser Standards and Ethics Authority (FASEA) regime.
In a submission to the Senate Economics Legislation Committee, the FPA said any opt-in system such as that being legislated by the Government for insurance inside superannuation required Australians to make informed decisions about their financial positions.
“We call on the Government to support initiatives that will help people do this,” it said.
“We therefore recommend that the Government make financial advice provided by registered financial planners tax deductible, in particular for those under 25 considering their insurance needs,” the FPA submission said.
The FPA’s submission comes at the same time as the so-called XY Adviser group has mounted a campaign in support of making financial advice tax deductible – something which it claims will offset rising costs of financial advice fees and also provide a clear path for more Australians to receive advice.
The FPA has used virtually every pre-Budget submission filed with the Government over the past decade to lobby for the tax deductibility of advice.