In its submission to the inquiry released today, CBA argued that “access to quality and affordable financial advice” is one of the major priorities in funding Australia’s retirement, thereby legitimising the call for tax-deductibility.
Among a list of recommendations, the submission suggests the government “make financial advice tax deductible and unify tax deductions between upfront and ongoing payments for financial advice”.
However, in an exclusive interview with ifa earlier this year, Senator Arthur Sinodinos said the government is not in a fiscal position to entertain the notion of tax-deductible advice.
“I’m not contemplating tax-deductibility of financial advice,” Senator Sinodinos said. “You can often look at things in isolation and say, well, that sounds a good idea on its merits because there are social costs and benefits in doing it, or economic benefits in doing it, but the challenge for us in the period ahead is that we have to look at the Budget as a whole.
The costs of running a business are usually tax deductible especially if they include GST. so its only fair if costs of running a SMSF are deductible.