Financial advice practices are expected to take advantage of the Federal Government’s new small business package.

Financial Planning Association GM Policy and Conduct Dante De Gori says the program, announced in last week’s budget, will help advisers grow their practices.

“This package will assist financial advisers who are often small business operators themselves,” he said. “Advisers also provide advice to many Australians who run their own business or are seeking to start up their own business.

“The reduction in the company tax rate and a 5% discount for sole traders, along with an immediate tax deduction for items purchased for below $20,000, is a fantastic initiative.”

Association of Financial Advisers (AFA) CEO Brad Fox says the package is a “realistic attempt to unfreeze the wheels of small business across the economy. The AFA believes the asset-deduction initiative will help financial advice practices bring forward [spending] on assets to support dealing with current disruptive changes.

“The changes brought on by the Future of Financial Advice [reforms], consumer expectations and potential insurance industry reform need to be dealt with by practice owners to future-proof their businesses.

“Acquiring assets that support practice administration, the professional provision of advice, client communication and service initiatives will be more attractive under the measure.”

Mr Fox says the package offers an incentive for advisers to bring forward changes including office refits and technology upgrades.