The results of the Financial System Inquiry's (FSI) interim report emphasises the need for tax deductions those who pay for financial advice, the Institute of Public Accountants (IPA) claims.
IPA chief executive, Andrew Conway, repeated the institute's call for advice to be made tax deductable after the FSI interim report highlighted the cost of financial advice.
"The FSI has recognised that comprehensive financial advice can be costly, and there is consumer demand for lower-cost scaled advice," he said.
"While Future of Financial Advice reforms have been introduced to increase consumer protection and provide a level playing field to deliver competitive, affordable advice, we support any policy initiative that makes this a reality.
"The IPA believes there is a strong case to support the tax deductibility for the costs associated with financial planning advice."
Conway said the introduction of tax breaks for those seeking financial advice would "considerably increase financial literacy, boost affordability and accessibility and reduce demands on public funding".
"It would encourage a larger number of Australians to seek financial advice," he said.
"The costs of a capped tax deductibility limit for financial planning advice will be significantly outweighed by the longer term benefits of assistance provided to tax payers as they plan for independent retirement.
"IPA members are well positioned to assist Australians to organise their finances and plan for retirement by providing independent and non-product specific advice. Already more than 70 per cent of Australians seek the services of a tax agent.
