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.
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certain advice cost are already tax deductible. Certain advice cost already forms part of cost base which helps reduce the total tax paid by ordinary tax payer. I have heard XY advisors harping about tax deductibility for quite some time. It would be very helpfull if these mobs could clarify what they are asking for and which tax principles these relate to. Are they asking for tax deductibility of retirement planning advice, and if so on what basis. Are they asking for asking for tax deductibilty of individual asset protection advice and on what basis ?
The author wrote: "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."
Really does highlight just how useless an organization the FPA is. Clearly in bed with product manufacturers and Treasury is fully aware of this tainted relationship.... and that's why nothing is achieved by these people. It actually does more harm then good. Here's an idea, stop getting payments from these firms and that's when you can go to Treasury and say we represent Australians and Financial Advisers and we want this outcome. Going to Treasury saying here's our press release cut and pasted by our puppet masters at AMP is clearly not working.
I agree, but I suspect the future for selling product is for an organisation such as AMP is to go Industry Super style. Intra fund advice fees are tax deductable to the fund, they are charged to every member, they are charged forever, they are not disclosed, they are reliable and advice can be provided without best interest duty and any advice is all about selling a member more product, and Treasury and ASIC love it or have no idea. The FPA is out of its depth and hff as been for a very long time. Us Financial Planners have few friends - best to get a job selling Industry Super super doggy asset allocation and no obligation to deliver a service for a fee charged or become an Advice Coach I suspect.
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