“Positive vibes” in payroll dispute
Thefinancial planning industry has been given its first real glimmer of hope that it may be able to avoid a potentially messy dispute over proposals by state governments to impose payroll tax duties on dealer groups.
The New South Wales Government’s Office of State Revenue (OSR), which is reviewing the application of payroll tax to dealer groups, has approached theFinancial Planning Association(FPA) to gauge how an exemption from the tax may be applied to dealers who employ advisers as independent contractors.
The payroll tax issue has come to a head over the past 12 months after the OSR issued payroll tax assessments to a number of financial planning dealer groups, including Bridges Personal Investment Services.
It is understood the assessments were based on the assumption that planners were direct employees of the dealer groups and not self-employed contractors, exposing the dealers to the payroll duties.
Bridges has objected to the assessment and is taking the case to the Supreme Court of New South Wales, where it is expected to get a hearing in April.
The FPA last week was playing down the approach by the OSR, saying it was part of the ongoing discussions on the issue.
However, the association’s national manager of policy and government relations, Con Hristodoulidis, says it is a positive development on an issue that could have major implications for dealer group revenue.
“It is a move in the right direction. The vibes we are getting are positive. It is a matter now of working through [the OSR’s] understanding of the issues and hopefully there will be a good outcome,” he says.
Recommended for you
After seven years at the company, Iress’ chief technology officer for wealth management APAC, Anthony Gerrits, has departed as the firm commences a search process to fill the role.
With advice firms thinking about scaling up in 2025, research has detailed the main avenues financial advisers say they have used for successful recruitment.
The board of Insignia Financial has reached a decision regarding the possible acquisition of the firm by US private equity giant Bain Capital.
Six of the seven listed financial advice licensees have reported positive share price growth in 2024, with AMP and Insignia successfully reversing earlier losses.
