Date posted: 28/02/2024

Joint submission on Draft Taxation Determination TD 2023/D4

Chartered Accountants Australia and New Zealand, CPA Australia, Institute of Public Accountants and Financial Advice Association of Australia welcome the decision by the Australian Taxation Office to release new guidance on deductions for fees paid for financial advice by individuals.

Overall, we are unanimous in our view that the Draft Determination represents a significant improvement to TD 95/60W and better reflects some of the changes that have occurred in the financial advice profession since 1995.

Further, it is acknowledged that in publishing the Draft Determination, the ATO has had regard to our previous feedback provided on a confidential basis. Specifically, the Draft Determination:

  • uses examples that are more closely aligned to ‘real world’ scenarios whereby individuals seek out and receive financial advice; and
  • seeks to address the regulatory link between financial advice and tax advice, including by recognizing the key concepts ‘tax (financial) advice’ and ‘qualified tax relevant provider’.

Notwithstanding the above, we respectfully submit that further work should be undertaken by the ATO to refine the Draft Determination prior to the issue of a final determination.