Given the supposed urgency of the Government's advice reform package – described as "vital" nearly a year ago by Assistant Treasurer Stephen Jones – you'd be forgiven for thinking the industry might make a showing in the 2024 Budget.
Alas: nothing. Across the four Budget papers, comprising 999 pages (I counted), financial advice wasn't mentioned once. I won't pretend to be an authority on legislative triage, but this seems like a significant oversight – especially if, again quoting 2023-era Jones here, advice affordability is instrumental to "ensuring all Australians benefit from the financial system."
It's not like the Government was bereft of opportunities, either. Ahead of the Budget's release, the FAAA helpfully provided a list of "key items that will have a positive impact on the financial futures of Australian consumers hit hard by the cost of living crisis." These items included fairer industry levies (for both ASIC and the CSLR), increased support for adviser education and improvements to tax deductibility.
Once disappointment struck, FAAA CEO Sarah Abood observed that there was "little remedy for the skyrocketing costs" that will "inevitably be passed on to consumers, further raising the cost of professional financial advice that more Australians need more than ever."
Of course, while the Budget failed to address any of the FAAA's concerns or even mention the industry by name, that doesn’t mean it’s a complete wash. Halfway through the second paper, there’s a provision that could have bigger implications for advice than you might expect.
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Advisely Team