ATO clarifies tax deductibility rules for financial advice fees
The Australian Taxation Office (ATO) has released a draft determination clarifying rules on the tax deductibility of financial advice fees, a move welcomed by the Financial Advice Association Australia (FAAA).
The Australian Taxation Office (ATO) has issued new draft guidance aiming to clarify the tax deductibility of financial advice fees. The Financial Advice Association Australia (FAAA) has welcomed the release of the draft determination (TD 2023/D4), stating it addresses long-standing needs for updated rules.
The FAAA collaborated with Tangelo Advice Consulting and other industry bodies in consultations with the ATO to update Tax Determination 95/60, which dates back nearly 30 years. This update reflects significant regulatory changes and the evolving role of financial advisers, who are now recognized as Qualified Tax Relevant Providers.
Sarah Abood, CEO of the FAAA, indicated broad satisfaction with the revised guidance. "It’s pleasing to see that the ATO has included some real-world examples, including ones that we had suggested," Abood stated.
The draft determination is open for public comment until February 2, 2024, and the FAAA encourages industry participants to submit feedback. The association plans to offer its members guidance and tools to implement the final determination once it is issued by the ATO.