Since the day it was announced, CA ANZ has been calling on Labor to ditch the proposed $3,000 cap because it would have disincentivised people getting tax advice at times they need it most.

Susan Franks, Senior Tax Advocate, Chartered Accountants Australia and New Zealand, said the decision was very much welcomed, and will help keep the tax system fair.

“Scrapping the cap is a great outcome for Australians,” Ms Franks said.

“It would have hit people hard when they are at difficult or seminal moments in their life, like navigating a relationship breakdown, dealing with the tax implications of a death in the family, winding up a business or planning a retirement.

“In the middle of such stressful, expensive events, Australians shouldn’t have to pay tax on money spent getting tax advice – they should be encouraged to get the best advice so that they don’t make a mistake.

“We congratulate Labor for removing this policy.”

Ms Franks said that following an incredibly tough few years with the bushfires, pandemic and now floods, Chartered Accountants have played a critical role in supporting families and businesses.

“Chartered Accountants are usually one of the first ports of call after a financial crisis, and when people start to think about recovery,” Ms Franks said.

“We work directly with people who have been hit hardest, including those who have lost their jobs, their income, who are trying to keep their retirement plans on track, or who are trying to keep their business afloat until conditions improve.

“After years of concern about this issue, I am sure I can speak on behalf of most of our 131,000 members when I say we are very pleased with this sensible outcome.”