The Financial Planning Association of Australia has made many requests to the government to make the cost of quality personal advice tax deductible since 1994.
In the 1990s, the FPA required all members to provide advice in a “Financial Plan”. There were no laws in Australia on how advice was delivered to the client at the time. All Certified Financial Planners (CFP)® had to submit a Financial Plan (case study) for peer review up until 1993 and thereafter sit DFP8 Financial Plan Construction to qualify for the CFP designation.
The cost of this Financial Plan which usually took 8 hours or more to prepare was paid via an upfront commission or invoiced to the client. It was not tax deductible, except for a small reduction in the cost base of the investment when the up front commission was paid for the purpose of capital gains tax. This small bit of tax relief for the cost of advice as removed when upfront commissions were banned.
In this article the Chair of the ACT Chapter of the FPA, Warren Aitken, describes the actions of the FPA took with support of its 5,000 members back in 1994:
History of the Certified Financial Planner designation in Australia since 1986: