FPA

The ATO is planning a midyear release of updated guidance on the tax deductibility of financial advice, according to panellists at a recent industry event, with indications that a new interpretation could see upfront advice fees deemed deductible.

Michelle Levy said she was ‘puzzled’ by the government’s decision to conduct a consultation on the proposals handed down in the advice review, while industry leaders urged for the adoption of her reform suite.

The ATO recently announced a rule review that could see the cost of advice fees become tax deductible, a change many in the industry say would expand access to quality financial advice by making it more affordable.