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I agree with all the responses above and caution should be used, but have also noticed an Instagram adterisment, spruking the same sales line.
I came to here to look up its truth.
Not sure how to add the screenshot, so here is the text from Pillar Financial:
"The Australian Government has tax incentives that allow home or business owners to redirect up to 50% of their income tax to pay off their mortgage faster and reduce debt. If you qualify, you could be taking advantage of government tax incentives to save up to half of your tax."
I cannot find any direct reference to the incentives mentioned.
so large companies get massive tax cuts from governments.
smaller companies get such.
homeowners who are business owners also do yet these financial advisors who may help you gain a better tax break than getting are all scammers because they are willing to give you the loophole as long as spend your fin advice with them for your future fin requirements.
All the people it may have worked for maybe not shouting it out so they don't get caught.
if are going to go with them dont give them money or info until they can prove the savings. simples.
This is merely a sales technique by financial planners and property agents to 'sell you' something. It may be a version of negative gearing but there should be no confusion that there is NO SUCH LAW allowing 50% of your taes to go to mortgage. It it totally sales technique to get you in the door and sign you up to products or services which you most likely dont need or want and most probably wont do what they promise. Until the ATO, ACCC and the Government do something to stop this people will continue to be scammed, both illegally and legally. I put this down as a legal scam as it perpetrated by financial planners normally and other than the misleading advertising their 'advice' wont break any rules. It may not help you and just generate comissions for them, but it wont be illegal.
As a licensed financial adviser, I find these advertisements very frustrating. Firstly, I have clients who see them and ask, and I have to walk through the dodgy with them to show them how to watch out for these scams. Secondly, because this (apparently) unlicensed advertising by what's either property sprukiers or dodgy financial advisers gives the rest a bad name on forums such as these!
For years, as advisers, we've wanted to be able to dob in this **bleep**, but nobody seems to listen. I was told about Storm Financial when I started back in 2004 - and knew people who'd reported them, with no effect!
Please don't throw all of us in the same bucket!
I'm guessing the phonecall I just had is a similar thing. I can't find any direct references about "Government tax incentives for working homeowners".
The caller was from Living Advantage / Core Strategies. Asked me 5 'qualifying questions' which weren't really personal/identifying in nature:
3. marital status
4. combined household income
5. equity in property
Then wanted my postcode so someone could call me. At that point I said I would prefer to do my own research and get back in contact if I was interested. She did say something about retirement, and not many people know about the government incentive. So, I guess it's as per the above comments.
I thought you offer a very common sense approach to it all so well done. We all need to do our own due diligence for sure. Asking people which government website talks to their proposal and where is often a good first step in sorting what's possible.
As @Godfather rightly says though there are good financial advisors out there but again due diligence. Additionally if any of us come across something dodgy or it just feels wrong making a tip-off is a good place to start.
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