Supplied by Stu Varidel
As of July 1st, 2024, the Australian Tax Office (ATO) changed its interpretation of the GST legislation,
removing the Reduced Input Tax Credit (RITC) for advice fees. This change has increased the GST on advice fees from 2.5% to 10%, resulting in higher costs for you.
The RITC is a Goods and Services Tax (GST) rebate on certain fees charged through a platform. Historically, it allowed Super Funds and IDPS Operators to claim a refund from the ATO on the GST applied to financial advice fees, effectively providing investors with a 75% discount on the GST charged on these fees.
For example, a $1,100 advice fee (including GST) previously resulted in a net payment of $1,025 after a $75 credit. Now, you are charged the full $1,100.
No legislative change has occurred, the ATO has just changed its interpretation of legislation supported by many private rulings that have been in place since the introduction of GST in 2000.
This sneaky tax hike comes on top of many such changes, significantly increasing the cost to Australians seeking Financial Advice. The government lacks any integrity or credibility as they say they want to lower costs to consumers to seek advice but are doing the complete opposite!
There has been significant advocacy through industry bodies to have this interpretation of legislation by the ATO reversed which resulted in it being delayed by 3 months.
We now need you to ask the House of Representatives to reverse this December 2023 interpretation which will hurt all consumers.
Please click the Australian Parliament Petition link https://lnkd.in/gT-R-CtG.
Importantly, click the link in the verification email sent to you from the Australian Parliament Petition website to ensure your voice is heard.
The petition is only open until the 4 th of December 2024.
Please feel free to share with your friends and family to help amplify our collective voice and express displeasure with the government for increasing the cost of financial advice at a time when it is needed most.
Supplied by Stu Varidel – MFinPlan, CRPC, ABFP, AFPStu Varidel – MFinPlan,
CRPC, ABFP, AFP • 1st • 1stPrincipal Financial Adviser | Chartered Retirement
Specialist | Accredited Behavioural Finance Professional | Money Guru | Life Coach |
Financial Educator | Advocate for Financial Advice & Consumer Access.Principal
Financial Adviser | Chartered Retirement Specialist | Accredited Behavioural Finance
Professional | Money Guru | Life Coach | Financial Educator | Advocate for Financial
Advice