Tax breaks urged on financial planning
Major financial services house Mercer Wealth Solutions has called on the Federal Government to implement measures capable improving access to financial planning advice, thereby closing the retirement funding gap.
Mercer Wealth Solutions financial advice leader Scott Williams said the company believed the Government needed to study the feasibility of introducing new measures such as a tax offset or making all forms of financial advice tax deductible.
He said that either approach was capable of removing a tax disincentive, thereby lowering the cost barrier to obtaining comprehensive financial advice.
“Australia is a world leader in advancing self-funded retirement, where individuals carry the savings responsibility,” Williams said. “A logical step in the evolution of this approach is to provide a tax offset or allow consumers to claim a tax deduction for all financial advice and plans.”
He pointed out that it could cost consumers anywhere from $1,500 to $10,000 for the development of a comprehensive financial plan.
“A tax offset of up to $1,000 on this expense, for example, would be worthwhile, provided its impact was assessed carefully through a feasibility study,” Williams said.
AUTHOR
Mike Taylor
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