Date posted: 15/05/2019 2 min read

Policy arguments against Labor’s proposed $3,000 cap

A letter for members to use outlining the impact of Labor’s proposed $3,000 cap on deductions for managing tax affairs.

In brief

  • Labor’s proposal fails to acknowledge that sometimes the cost of managing an individual’s tax affairs can easily cost more than $3,000
  • The letter outlining how this policy cap can cause hardship and put individuals at a disadvantage
  • CAs in public practice can adapt and send to their clients under their letterhead or use in discussion with their clients

In conjunction with our ongoing advocacy work with politicians and the media, CA ANZ has drafted a letter that outlines the main policy arguments against Labor’s proposed $3,000 cap on deductions for managing tax affairs.

CAs in public practice can adapt and send to their clients under their letterhead or use in discussion with their clients.

Labor’s proposal fails to acknowledge that sometimes the cost of managing an individual’s tax affairs can easily cost more than $3,000, especially in situations when you really need a tax professional in your corner.

The letter outlining how this policy cap can cause hardship and put individuals at a disadvantage and outlines a few common situations where fees can easily exceed $3,000 such as when:

  • personal or small business tax affairs are investigated by the ATO
  • you plan to start a business, sell a business or devise a strategy for passing on a business to others
  • you are looking after your retirement plans and have a self-managed superannuation fund (SMSF)
  • one-off life events such as divorce or premature death of a bread winner or business owner.

Australians deserve to seek the advice of their accountants and your plans to cap deductions at $3000 stands in their way is not giving them a ‘fair go.’

Download the letter

For members to use with their clients

Download here

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