The Financial Planning Association (FPA) has once again called on the Government to make up-front financial advice fees tax deductible and it wants the Budget impact of such a move to be assessed by the Productivity Commission.
The FPA has used its pre-Budget submission to the Treasury to renew its call for tax-deductibility, arguing that it should be premised similarly to how consumers access accountants and therefore give them an incentive to seek financial advice.
Outlining the FPA submission today, FPA chief executive, Mark Rantall said he believed the organisation's recommendations would ensure Australians had a strong financial future based on financial knowledge from experts.
"It is important for Australians to understand the benefits of superannuation and have access to financial literacy to maintain consumer protection," he said.
Rantall pointed to the fact that only one in five Australians access financial advice, despite the fact that it contributes positively to financial literacy, social inclusion, and economic outcomes.
"Investment Trends research shows that 30 per cent of consumers who are not interested in seeking financial advice cite high cost of advice as a deterrent. It is clear that policy intervention from the Government is key," he said. "Making financial advice more affordable for consumers supports the Coalition's superannuation policy to encourage as many Australians as possible to actively plan and save for their retirement, take full advantage of the benefits the superannuation system provides and work toward a self-funded retirement."
Rantall said that to support its Federal Budget proposal, the FPA was recommending that the Government engage the Productivity Commission to examine the short-term and long-term position of the Budget if the preparation of an initial financial plan and ongoing fees were tax deductible.