Commbank calls for advice tax deductibility
The Commonwealth Bank has used its submission to the Financial Systems Review to call for the upfront payment of financial advice fees to be made tax deductible.
In a comprehensive submission launched today, the bank referenced tax deductibility as one of the mechanisms which would improve the accessibility and affordability of advice and pointed to the current distortions which existed as a result of ongoing fees being tax deductible while upfront fees are not.
“The Commonwealth Bank recommends making the cost of financial advice tax deductible for consumers and unifying treatment of the different forms of payment for financial advice,” the submission said.
It said such a move would be consistent with the objectives of making advice more accessible and affordable for more people.
The submission also claimed that uniform tax deductibility for upfront and ongoing fees would not only address the current distortion but address greater retirement savings.
The bank’s submission has also called for the removal of barriers to the development of retirement income stream products but has argued that, contrary to perceptions, Australian retirees do not have a lump sum mentality and that the taking of lump sums has been declining over time.
Recommended for you
The Governance Institute has said ASIC’s governance arrangements are no longer “fit for purpose” in a time when financial markets are quickly innovating and cyber crime becomes a threat.
Compliance professionals working in financial services are facing burnout risk as higher workloads, coupled with the ever-changing regulation, place notable strain on staff.
The Senate economics legislation committee has recommended Schedule 1 of the Delivering Better Financial Outcomes legislation be passed as it is a “faithful implementation” of the recommendations.
Treasurer Jim Chalmers has handed down his third budget, outlining the government’s macroeconomic forecasts and changes to superannuation.
