Ripoll scotches tax deductibility of planning advice
The Government has scotched the suggestion of granting tax deductibility status to financial planning advice anytime soon.
Speaking at the SPAA State Technical Conference in Sydney yesterday, the chair of the Parliamentary Joint Committee (PJC) on Corporations and Financial Services, Bernie Ripoll, said that while the PJC did not recommend against making financial planning advice tax deductible, he believed Treasury needed to take a long look at any such proposal.
“The Government has indicated that it isn’t prepared to go down that route yet,” Ripoll said.
He side stepped the issue of the Government potentially introducing a rebated Medicare-type system for consumers to assist in making financial planning advice more affordable to consumers.
“I don’t think the issue is entirely about price,” Ripoll said. “With only 20 per cent of consumers currently getting professional advice, the market is saying there is not enough value in getting advice.
“I’d rather see us lift the professionalism of the industry and the education standards of those providing advice. The Government is looking at setting up a Professional Standards Board, which will go a long way in improving the professionalism of the industry.”
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