---
title: "ATO revises advice fee tax deductible rules - Sapience Financial"
description: "Understand the ATO's clarification on tax-deductible financial advice fees and how they relate to managing tax affairs in Australia. Learn about the deductibility of ongoing advice fees and the distinction from initial advice fees."
url: "https://mail.sapience.com.au/resources/small-business-alerts/ato-revises-advice-fee-tax-deductible-rules"
date: "2026-05-26T19:21:08+00:00"
language: "en-GB"
---

#  Small Business Alerts

##  ATO revises advice fee tax deductible rules

- [ small business news ](https://mail.sapience.com.au/all-tags/small-business-news)

#### ATO revises advice fee tax deductible rules

![](https://mail.sapience.com.au/images/blog/news/small-business-news-updates-sapience-financial.svg)

The Australian Taxation Office (ATO) has confirmed financial advice fees for tax related guidance are deductible where the advice is provided by a **Qualified Tax Relevant Provider** (QTRP). The ATO released guidance stating, ‘fees for financial advice an individual incurs may be deductible under section 25-5 to the extent that the advice related to the managing their ‘tax affairs’.

- It added that, ‘it takes the view that tax (financial) advice is included within the meaning of 'tax affairs’.
- An individual must be able to identify the payment was for advice to assist them, in managing their tax affairs. For example, fees for advice in relation to salary sacrifice arrangements will be advise that assists an individual in managing their ‘tax affairs’.

Not all advice provided by a financial adviser will be considered to be tax (financial) advice.

Where an advisor merely provides *factual information* about a financial product that does not involve the application or *interpretation of taxation laws* to the clients personal circumstances, that advice will not be for managing the individuals tax affairs.

This new guidance does not change the ATO's current stance that other fees, being those related to initial advice, are capital in nature and cannot be deducted, and that ongoing advice fees are deductible.
TD 2024/7.

## Schema

```json
{
  "@context": "https://schema.org",
  "@type": "FAQPage",
  "mainEntity": [
    {
      "@type": "Question",
      "name": "What are Sapience Small Business Alerts?",
      "acceptedAnswer": {
        "@type": "Answer",
        "text": "Small Business Alerts are curated updates designed to keep Australian business owners informed about critical changes in insurance, governance, and risk management. We focus on 'Signal over Noise,' highlighting only the changes that impact business continuity and personal liability."
      }
    },
    {
      "@type": "Question",
      "name": "How do these alerts help with business risk management?",
      "acceptedAnswer": {
        "@type": "Answer",
        "text": "By staying informed about regulatory shifts and emerging insurance trends, business owners can proactively update their Shareholders Agreements, Buy-Sell funding, and Key Person covers before a crisis occurs, rather than reacting after the fact."
      }
    }
  ]
}
```

```json
{
    "@context": "https://schema.org",
    "@type": "BreadcrumbList",
    "itemListElement": [
        {
            "@type": "ListItem",
            "position": 1,
            "name": "Home |",
            "item": "https://mail.sapience.com.au"
        },
        {
            "@type": "ListItem",
            "position": 2,
            "name": "Small Business Alerts",
            "item": "https://mail.sapience.com.au/resources/small-business-alerts"
        },
        {
            "@type": "ListItem",
            "position": 3,
            "name": "ATO revises advice fee tax deductible rules",
            "item": "https://mail.sapience.com.au/resources/small-business-alerts/ato-revises-advice-fee-tax-deductible-rules"
        }
    ]
}
```

```json
{
    "@context": "https://schema.org",
    "@type": "Article",
    "mainEntityOfPage": {
        "@type": "WebPage",
        "@id": "https://mail.sapience.com.au/resources/small-business-alerts/ato-revises-advice-fee-tax-deductible-rules"
    },
    "headline": "ATO revises advice fee tax deductible rules",
    "description": "ATO revises advice fee tax deductible rules The Australian Taxation Office (ATO) has confirmed financial advice fees for tax related guidance are deductible where the advice is provided by a Qualified Tax Relevant Provider (QTRP). The ATO released guidance stating, ‘fees for financial advice an individual incurs may be deductible under section 25-5 to the extent that the advice related to the managing their ‘tax affairs’. It added that, ‘it takes the view that tax (financial) advice is included within the meaning of 'tax affairs’. An individual must be able to identify the payment was for advice to assist them, in managing their tax affairs. For example, fees for advice in relation to salary sacrifice arrangements will be advise that assists an individual in managing their ‘tax affairs’. Not all advice provided by a financial adviser will be considered to be tax (financial) advice. Where an advisor merely provides factual information about a financial product that does not involve the application or interpretation of taxation laws to the clients personal circumstances, that advice will not be for managing the individuals tax affairs. This new guidance does not change the ATO's current stance that other fees, being those related to initial advice, are capital in nature and cannot be deducted, and that ongoing advice fees are deductible.TD 2024/7.",
    "image": {
        "@type": "ImageObject",
        "url": "https://mail.sapience.com.au/"
    },
    "publisher": {
        "@type": "Organization",
        "name": "Sapience Financial",
        "logo": {
            "@type": "ImageObject",
            "url": "https://mail.sapience.com.au/images/brand-logo/sapience-financial-square-logo.png"
        }
    },
    "author": {
        "@type": "Person",
        "name": "Drew Browne",
        "url": "https://mail.sapience.com.au/resources/small-business-alerts/ato-revises-advice-fee-tax-deductible-rules"
    },
    "datePublished": "2024-10-17T13:30:42+11:00",
    "dateCreated": "2024-10-17T13:27:27+11:00",
    "dateModified": "2025-04-18T10:45:27+10:00"
}
```