IFSA calls for ‘full tax deductibility’ of advice fees

The Investment and Financial Services Association (IFSA) has called for full tax deductibility on all financial advice at an inquiry hearing today into financial products and services before the Parliamentary Joint Committee on Corporations and Financial Services.

It has also called on the Australian Securities and Investments Commission to become “more pre-emptive to market misconduct” and for licensing requirements and professional standards for planners to be raised.

New IFSA chief executive John Brogden said all fees for financial planning should be tax deductible to improve access to advice.

“Millions of Australians who need advice don’t get it now because of the cost, yet maximising access to financial advice is integral to increasing retirement incomes for working Australians.

“Tax deductibility for all financial advice is essential in ensuring that investors are able to effectively exercise choice in how they pay for their advice — be it up-front or ongoing.”

Brogden said there is a need to review the licensing process to ensure licensees and their authorised representatives are appropriately resourced and sufficiently competent to offer the range of financial services and products.

“We support improving the entry level requirements, ongoing qualification and professional development of financial advisers over time.

“However, any reforms must ensure affordable access to financial advice for those who most need it — particularly low income earners and young people,” he said.