FPA bullish on alienation response
The Financial Planning Association is confident it will receive positive news from the Prime Minister’s office on the issue of alienation of personal services income (APSI).
The FPA met with the Prime Minister John Howard in May, as part of its ongoing campaign to alleviate the effect of APSI on planners, at which time Howard stated he would respond within three weeks.
According to the FPA, since that time, it has been meeting with key figures within the Howard Government to seek a solution to what it considers to be unfair treatment of financial planners under the new tax laws.
Those key figures are the Prime Minister, Treasurer Peter Costello and the Minister for Small Business Ian McFarlane.
Despite the three week time period finishing on Friday, FPA chief executive Ken Breakspear said the progress had been made and the FPA had made its position clear along with the need to reach a solution for the industry.
"The Government is now well aware of the FPA's position on this issue and is cognisant that the solution must be reached and conveyed to the industry by 30 June 2001," Breakspear says.
The Prime Minister's office says it is still looking into the issue and working with the offices of the Small Business Minister, the Treasurer and the FPA.
The latter says it will not discuss the negotiations at present as they are sensitive but will continue to push for a result before the end of the financial year.
AUTHOR
Jason Spits
Recommended for you
Licensing regulation should prioritise consumer outcomes over institutional convenience, according to Assured Support, and the compliance firm has suggested an alternative framework to the “licensed and self-licensed” model.
The chair of the Platinum Capital listed investment company admits the vehicle “is at a crossroads” in its 31-year history, with both L1 Capital and Wilson Asset Management bidding to take over its investment management.
AMP has settled on two court proceedings: one class action which affected superannuation members and a second regarding insurer policies.
With a large group of advisers expecting to exit before the 2026 education deadline, an industry expert shares how these practices can best prepare themselves for sale to compete in a “buyer’s market”.
