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Understanding the tax deductibility of advice fees
“The thing that’s exciting for me is that I think advisers are giving advice on taxation more than what they think. Most superannuation advice will be deductible,” Mr Travers said.
“They’ve clarified that for example, when you give advice to hold income protection outside of super that’s deductible, a lot of cash flow advice, a lot of investment advice, asset allocation will come back to tax in some way.”
‘Game changer’ ATO consultation on advice fees launched
Conrad Travers of Tangelo Advice Consulting has been working with the FPA to campaign for expanding tax deductions for financial advice fees. “We believe there is a strong case under both 8-1 and 25-5 for all financial planning fees to be deductible,” Travers says. “We believe that in our current environment, around 75 per cent of the strategies an adviser recommends have a tax component to them.” Travers says the firm looks forward to a potential win for advisers and their clients.