The Financial Advice Association has welcomed the Australian Taxation Office’s revised guidance on tax deductibility of financial advice fees, suggesting that it’s a positive development in clarifying relevant rules. 

The association said it’s “broadly pleased” with the updates, as it clearly states that upfront fees are deductible to the extent they relate to tax advice and gives more clarity around the deductibility of ongoing fees. 

Alongside Tangelo Advice Consulting and industry bodies, the FAAA has been in consultation with the ATO to update the guidance, after consultation was launched a year ago on Tax Determination 95/60. 

The revised guidance is open to feedback until 2 February 2024.