FPA seeks exemptions on GST
The Financial Planning Association (FPA) has called on the Federal Government to provide advisers with capital gains tax exemptions while the industry adjusts to the new GST regime.
The Financial Planning Association (FPA) has called on the Federal Government to provide advisers with capital gains tax exemptions while the industry adjusts to the new GST regime.
"For the GST to work, really we have to effectively have major re-structuring," says FPA chief executive Michael McKenna.
But, he says that if restructuring is to occur, the government needs to allow for certain exemptions.
"Capital gains tax could incur (with the current GST) and what we're suggesting to the government is that financial planners should in fact be granted a window of opportunity, where they can restructure their business without incurring a capital gains tax," McKenna says.
The Federal Government is yet to respond to the FPA's call.
"We have sought advice at this stage. We haven't seen any legislation so we are purely under the assumption that the New Zealand model will be one that will be followed by Australia," McKenna says.
Recommended for you
The new financial year has got off to a strong start in adviser gains, helped by new entrants, after heavy losses sustained in June.
Michael McCorry, chief investment officer at BlackRock Australia, has detailed how investors are reconsidering their 60/40 portfolios as macro uncertainty highlight the benefits of liquid alternatives.
Having reset its market focus to high-net-worth advisers, Praemium’s administration solution has been selected by Bell Potter in a deal that increases the platform's funds under administration by $6 billion.
High transition rates from financial advisers have helped Netwealth’s funds under administration rise by $3.7 billion in the fourth quarter of FY25.
