In September 2024, the ATO released Tax Determination TD 2024/7 which states that financial advice fees relating to tax (financial) advice can be deductible under section 25-5 (which deals with tax related expenses) if the advice is provided by a Qualified Tax Relevant Provider - such as here at Source Wealth.
Prior to this determination, ongoing advice fees charged directly against investment portfolios were typically fully tax deductible. This change now means that part or all of the upfront advice fee is also tax deductible when relating to tax (financial) advice. This is a major win for clients, making the net cost of advice more affordable.
It is important to note that fees paid from superannuation are not tax deductible. In addition, many fees paid from superannuation previously received a Reduced Input Tax Credit which reduced the net cost of the fees. This credit has since been wound back by the ATO.
With these changes, there has never been a better time to reach out for Financial Advice. You can book in your initial chat here.
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