The Australian Taxation Office has established in its final determination regarding the tax deductibility of advice fees that advice fees relating to tax advice can be deductible, if the advice is provided by a qualified tax relevant provider.
This determination an updated view from that in the draft determination from 2019, after a consultation was launched in 2022.
The ATO’s view in the final determination confirms its updated view from the draft determination 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.
The ATO has maintained its view that other fees relating to initial advice are capital in nature and thus not deductible, and that ongoing financial advice fees are deductible.
The Financial Advice Association will be working on guiding members as to how to implement this tax determination, beginning in early 2025.
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