Tax deductible advice unlikely: FPA
Jo-Anne Bloch
Financial planning advice will not be a tax-deductible service in the foreseeable future, according to the Financial Planning Association (FPA) chief Jo-Anne Bloch, who said the association is pursuing alternative payment options for those seeking advice. “When we talked [to the government] pre-election there was support [for tax deductibility] as there was support from the regulator and from all quarters, the problem is the cost,” Bloch said.
The annual costs associated with an equivalent deduction for accounting services in this country is $1 billion, according to Bloch.
“From a policy point of view it’s fine,” she said.
And while tax deductions may be a no-go in the short term, Bloch said other possible avenues might be explored, including super fund deductions and salary sacrifice.
All Australians should be able to get advice, whether they think they can afford it or not, according to Bloch.
“People should be able to pay for this advice in a number of ways,” she said.
Recommended for you
Insignia Financial has returned to profit in FY25, after a $185 million loss in the previous year, while its advice division grew their revenue per adviser by 14 per cent.
With licensee switching on the rise, particularly for newer advisers, compliance expert Sean Graham has shared red flags to watch out for when making the jump between AFSLs.
Beyond their investment benefits, over a third of advisers say utilising managed accounts solutions has allowed them to take on more clients, according to Praemium.
Insignia Financial’s wrap platform has appointed Heidi Press, former HUB24 head of product management, to spearhead the design and delivery of the MLC Expand platform.
