Should financial advice be tax-deductible?
The Financial Planning Association (FPA) and the Australian Financial Services Council are among groups lobbying the Australian government for tax deductibility on all forms of financial advice, on the basis this would make it more affordable.
“The inability to claim a tax deduction for the fees associated with an initial financial plan acts as a disincentive for people to take the first step towards organising their finances on a strategic basis,” the FPA said in a recent submission.
“Specifically allowing initial advice fees to be tax deductible would greatly assist consumers’ access to affordable financial advice that is beyond mere income tax or of a superannuation nature.
"While this would involve some additional costs to government, these costs would be significantly outweighed by the long-term benefits. Including caps on either the size of the tax deduction or an income cap on those able to receive a deduction could control this revenue cost.”
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