{"id":108705,"date":"2026-01-19T08:31:00","date_gmt":"2026-01-18T21:31:00","guid":{"rendered":"https:\/\/en.econostrum.info\/au\/?p=108705"},"modified":"2026-01-18T21:29:31","modified_gmt":"2026-01-18T10:29:31","slug":"ato-clarifies-tax-rules","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/au\/ato-clarifies-tax-rules\/","title":{"rendered":"ATO Clarifies Tax Rules \u2014 What You Can (and Can\u2019t) Claim for Financial Advice"},"content":{"rendered":"\n

When it comes to tax, most Australians are keen to claim every legitimate deduction they can \u2014 but financial advice has always been a bit of a grey area. Now, the Australian Taxation Office (ATO) has provided fresh guidance on exactly which types of advice can be written off, and which can\u2019t.<\/p>\n\n\n\n

ATO Clarifies Tax Deductions on Financial Advice<\/h2>\n\n\n\n

The ATO<\/a> has confirmed that certain financial advice fees may now qualify as tax deductions, depending on the purpose and timing of the advice. Specifically, advice related to managing existing investments \u2014 such as shares or managed funds \u2014 can be claimed as a deduction.<\/p>\n\n\n\n

However, fees paid for initial financial advice, which is typically used to create a brand-new investment strategy or portfolio, are not deductible. The difference lies in whether the advice helps you earn assessable income or simply sets up the means to do so later.<\/p>\n\n\n\n

That might sound like a technical distinction, but it\u2019s an important one. Ongoing advice and portfolio management \u2014 which generate income over time \u2014 are viewed as part of earning taxable income. On the other hand, setting up a financial plan is considered a private expense.<\/p>\n\n\n\n

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The sign of the Australian Taxation Office (ATO)<\/figcaption><\/figure>\n\n\n\n

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What the ATO Says You Can and Can\u2019t Claim<\/h2>\n\n\n\n

The tax office outlined that Australians can generally claim deductions for advice costs directly connected to earning investment income, explains Yahoo Finance<\/a>. That includes fees for monitoring or adjusting existing portfolios, reviewing performance, or rebalancing assets.<\/p>\n\n\n\n

However, Australians cannot claim costs related to establishing a superannuation fund, buying insurance, or paying for general budgeting services. Those fall under personal financial management, not income generation.<\/p>\n\n\n\n

Financial advisers say this clarification from the ATO will help investors make smarter, more compliant decisions come tax time. Still, the onus remains on individuals to keep detailed records of invoices and reports that clearly show the nature of the service provided.<\/p>\n\n\n\n

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ATO tax deductions that Aussies can claim for financial advice fees: \u2018Make the most\u2019 https:\/\/t.co\/sW8JS45Z7W<\/a><\/p>— Yahoo Finance Australia (@YahooFinanceAU) January 18, 2026<\/a><\/blockquote>