FPA encourages tax deduction of financial advice fees

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The FPA submission to the federal budget 2012-13 has outlined key recommendations to improve access to financial advice to all Australians, such as a tax deduction of fees.

Dante DeGori, General Manager Policy and Government Relations for the FPA and responsible for the FPA submission, has suggested key budgetary public policy initiatives required to meet the Government’s current reform agendas.

“The FPA believes there are specific initiatives that the government must undertake in order to improve access to financial advice for those Australians who are most in need of assistance in managing their financial affairs. These recommendations will encourage a savings culture for consumers; remove inconsistencies in the tax system; and improve Australian’s retirement preparedness, in turn reducing reliance on the social security system.”

The three key recommendations the FPA has made are:

  1. A tax deduction to be available for the cost of upfront financial planning fees
  2. The removal of the age restriction (currently 75 where the work-test is satisfied) for the purposes of making concessional or non-concessional contributions
  3. Changes to the concessional contribution caps to ensure more Australians are able to self-fund their retirement.

“The FPA has also listened to our members who are helping consumers reach their financial goals every day. We believe adopting these recommendations would effectively deliver good social outcomes by making financial advice more accessible and improving the long-term financial security of Australians. The FPA thanks Government and Treasury for the opportunity to contribute to the pre-budget process. We would welcome the opportunity to discuss these issues further with the Government,” said Mr DeGori.

Submissions to the federal budget 2012-13 submissions closed on Friday 27 January 2012 and the final budget is expected to be released on budget night, Tuesday 8 May 2012.

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