It emailed an eye-catching information bulletin to brokers today, saying: “Your income may be about to be slashed by 13%.” IMBA states that “any financial service fees found not to be exempt would be subject to GST as of Dec 14, 2009.”
Prior to this year, financial services agents (like mortgage brokers, insurance agents, financial advisors, etc.) were GST exempt. If you assume the average mortgage planner makes $50,000 a year, this tax could wipe out roughly $6,500 a year of those earnings, minus deductions.
For a general discussion of the financial services exemption see this KPMG Advisory Bulletin.
Sidebar: If your livelihood is affected by this proposal, ensure your MP knows about it.
Here is a link whereby you can find your MP's email address: