Monday, 21 April 2008 
 
 
The Institute of Chartered Accountants (the Institute) has long held a position in relation to financial advice being made a tax concession, for advisers using a fee-for-service remuneration model, and is pleased with the positions taken from the Industry Super Network (ISN) and the Financial Planning Association (FPA), who support this view. 
 
In the Institute’s previous pre-budget submissions it raised the issue of tax concessions of financial planning fees for advice. The Institute believes this will assist in making financial planning advice more affordable and will ultimately lead to wider access by many more Australians.  
 
“The fact that commissioned based financial advice attracts the tax advantage, while advice given by fee-for-service advises does not, is an obvious problem currently facing the industry,” said Hugh Elvy, Institute of Chartered Accountants in Australia, Manager Financial Planning and Superannuation. 
 
“If tax advantages are placed on fee-for-service advice it will go along way to improving the professionalism of the financial planning industry and the trust between financial advisers and their clients.”  
 
“It is important for the industry and government to continue to work closely to ensure that the financial advice gained from a fee-for-service remuneration structure can be offset by the client at tax time.” Mr Elvy said. 
 
The Institute and its members will continue to work with government to ensure consistency of tax concessions for clients receiving financial advice.