The Financial Advice Association of Australia produced the guide in consultation with CA ANZ, CPA Australia, and the Institute of Public Accountants (IPA) to help advisers navigate the updated ATO regulations.
Sarah Abood, chief executive of the FAAA, said the implications of the updated ATO guidance are important for both financial advisers and accountants.
“We have worked together with the accounting associations so that the guidance is practical and consistent for both,” Abood said.
“The publication of this guide follows more than six years of advocacy from the FAAA to encourage the ATO to update its guidance. The ability for taxpayers to legitimately claim a portion of the initial advice fee for financial advice clients is new and is live now. The guide also provides clarity regarding the claiming of ongoing fees.”
She added that advisers can now support their clients to claim a legitimate tax deduction for financial advice fees confidently.
The guide includes the legislative background and definitions of tax (financial) advice and taxation law. It outlines three potential methodologies for apportioning fees and provides examples, statement of advice text and fee summary templates for active use.
Tony Negline, superannuation and financial services leader at CA ANZ, said the guide will help advisers and the accounting community to understand the practical implications of the tax deductibility of financial advice fees, which will ultimately benefit clients.
Tony Greco, senior tax adviser at IPA, said it is hoped the guide, in conjunction with its members acting as the client’s tax adviser, will provide clarity of the approach to apportionment and deductibility more generally.
The guide can be found on the websites of all four associations.
