FAAA welcomes clarity on fees tax deductibility

Mike Taylor

Managing Editor/Publisher, Financial Newswire

14 December 2023

The Financial Advice Association of Australia (FAAA) has welcomed an Australian Taxation Office (ATO) draft tax determination which looks to clarify the tax deductibility of advice fees.

FAAA chief executive, Sarah Abood said she particularly welcomed the fact that the ATO had provided real-world examples of when fees would be deductible, including an example suggested by the FAAA.

She said the draft revised guidance clearly states that upfront fees are deductible to the extent that they relate to tax advice, and there is far greater clarity on the deductibility of ongoing fees.

Abood noted that the revised guidance is open to feedback until 2 February, next year, and encouraged all industry participants to consider making a submission.