Industry unity on planning tax concessions

financial planning financial advice fee-for-service remuneration financial planning association financial services industry financial planning advice financial planning industry industry super network financial advisers

22 April 2008
| By Mike Taylor |

The financial services industry appears to be grouping behind a push to have tax concessions apply to financial advice, with the InstituteofChartered Accountantsin Australia (ICAA) now backing the prospect.

The ICAA announced this week that it had long held a position in relation to financial advice being made a tax concession for advisers using a fee-for-service model and was pleased with the positions taken by Financial Planning Association and the Industry Super Network.

The ICAA’s manager of financial planning and superannuation, Hugh Elvy, said the application of tax concessions to financial planning had been a feature of the organisation’s recent pre-Budget submissions because the institute believed it would make financial planning advice more affordable and would ultimately lead to wider access by many more Australians.

“The fact that commission-based financial advice attracts the tax advantage while advice given by fee-for-service advisers does not is an obvious problem currently facing the industry,” Elvy said.

“If tax advantages are placed on fee-for-service advice it will go a long way to improving the professionalism of the financial planning industry and the trust between financial advisers and their clients,” he said.

Elvy said it was important for the industry and government to continue to work closely to ensure that the financial advice gained from the fee-for-service remuneration structure could be offset by the client at tax time.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 2 weeks ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 2 weeks ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 2 weeks ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

6 days 6 hours ago

Having divested its advice business in August, AMP is undergoing restructuring in at least four other departments amid a cost simplification program....

3 weeks 5 days ago

The Reserve Bank of Australia's latest interest rate announcement has left punters disheartened on Melbourne Cup Day....

5 days 5 hours ago