Financial Advice Association Australia has issued a guide to making tax deductions for advice fees on behalf of clients.

The peak body produced the guide in consultation with Chartered Accountants Australia and New Zealand, CPA Australia and the Institute of Public Accountants.

The publication comes after the Australian Taxation Office released a final determination on the deductibility of financial advice fees last September. That determination included an example in which advice related to income protection cover provided by a tax adviser might qualify as a deductible.

FAAA CEO Sarah Abood said: “The implications of the updated [ATO] guidance are important for both financial advisers and accountants. We have worked together with the accounting associations, so the guidance is practical and consistent for both.”

FAAA says it has been calling for more than six years for an update to the ATO guidance.

“The ability for taxpayers to legitimately claim a portion of the initial advice fee for financial advice clients is new and is live now. Advisers can now support their clients to claim a legitimate tax deduction for financial advice fees with confidence.”