Should product advice negate tax deductibility?
Most financial advisers believe financial advice should be tax deductible for clients, but a significant cohort believe it should not be tax deductible for advice around product sales.
A survey conducted by Money Management has revealed that while virtually 100 per cent of advisers support the Government moving to make advice tax-deductible, there is disagreement around whether that deductibility should be applied to all advice.
In fact, the survey revealed most support for highly specific advice around transition to retirement (TTR) and superannuation, with significantly less support for where life/risk sales are concerned.
The survey has been undertaken at the same time as the Financial Planning Association (FPA) has pressed the Government to make advice tax deductible around advice helping people decide whether or not to opt in to insurance inside superannuation.
What the Money Management research has revealed is that while 70 per cent of respondents supported tax deductibility for “holistic” advice they became somewhat more selective when they were asked to specify what sorts of advice should qualify.
Where life/risk advice was concerned, only 56 per cent of respondents believed it should be tax deductible, while nearly 44 per cent believed it should not.
This compared to the 75 per cent who supported superannuation advice being tax deductible and the 69 per cent of transition to retirement advice.
Recommended for you
AMP has agreed in principle to settle an advice and insurance class action that commenced in 2020 related to historic commission payment activity.
Financial advisers will have to pay around $10.4 million of the impending $47.3 million CSLR special levy but Treasury has expanded the remit to also include super fund trustees and other retail-facing sub-sectors.
While social media can have positive financial influence, the overwhelming risks signal a greater need for affordable advice as Australians continue to seek financial education on social media.
Fitzpatricks Advice Partners has released a guide on building a national advice firm with the argument that these firms are crucial to facilitating growth in the struggling profession.
