Planners want deductions up-front
The Financial Planning Association (FPA) wants up-front financial advice fees to be tax deductible.
The FPA called on the Government to make the change ahead of the next federal budget, and says there is time for the Productivity Commission to assess the cost of such a move.
The lobby says tax-deductibility for up-front advices fees would give consumers an incentive to seek financial advice, similar to the way they access accountants.
“It is important for Australians to understand the benefits of superannuation and have access to financial literacy to maintain consumer protection,” FPA chief executive Mark Rantall said
“Investment Trends research shows that 30 per cent of consumers who are not interested in seeking financial advice cite high cost of advice as a deterrent.
“It is clear that policy intervention from the Government is key,” he said.
Rantall said that more access to financial planners would boost financial literacy, social inclusion, and economic outcomes.
“Making financial advice more affordable for consumers supports the Coalition's superannuation policy to encourage as many Australians as possible to actively plan and save for their retirement, take full advantage of the benefits the superannuation system provides and work toward a self-funded retirement.”
The FPA recommends that Productivity Commission be called in to examine the short-term and long-term position of the Budget if tax deductions were applied to the preparation of an initial financial plan and ongoing fees.