Guidance on tax-deductible advice fees released

The Financial Advice Association Australia (FAAA), in consultation with leading accounting bodies, has released new guidance on tax-deductible advice fees.

- Andrew McKean

The guidance follows the release of the ATO Tax Determination in September last year, which the FAAA had lobbied for around six years, and clarifies when individuals may be entitled to a deduction for financial advice fees.

The guide covers the legislative background and key definitions related to tax (financial) advice and taxation law. It outlines three potential methodologies for apportioning fees and provides examples, Statement of Advice text and fee summary templates, for active use.