On Jan. 15, AST Tax proposed guideline re personal financial advice.
AST Tax proposed Practical compliance guideline: PCG 2025/D1 - fees for personal financial advice paid from member accounts by superannuation funds - apportioning the deduction and pay as you go withholding obligations, re super and fees for advice.
The proposed guideline provides a legal basis for payment of financial advice fees from a member’s superannuation account and clarifies the associated tax consequences.
In addition, it outlines a methodology a trustee of a superannuation fund can use to determine the extent to which payments of financial advice fees satisfy para (d) of table item 5 of subsection 295-490(1) of Income tax assessment act 1997.
The superannuation fund above excludes self-managed superannuation fund (SMSF).
It outlines the compliance approach re a fund's pay as you go (PAYG) withholding obligations for financial advice fees paid in the income years prior to Jul. 1, 2019.
AST Tax guides that the methodology in part 1 of guideline is not available to SMSFs.
All superannuation funds, including SMSFs, may rely on this guideline re compliance approach to funds' PAYG withholding obligations prior to the 2019–20 income year.
Part 1 is proposed to apply for the 2019–20 income year and later income years.
Part 2 is proposed to apply for the 2018–19 income year and earlier income years.
Effectiveness
Pubic consultation closes on Feb. 14, 2025.
Regulators
AST Tax
Entity Types
Auditor; IA; Pension
Reference
CP, PCG 2025/D1, PR /15/2025; Citation: Income tax assessment act 1997; Treasury laws amendment (delivering better financial outcomes and other measures) act 2024;
