The Albanese government has rolled out the next tranche of its advice reforms, setting rules for super-funded advice fees and allowing targeted prompts to boost member engagement.
In a statement on Friday, the government unveiled the next tranche of its Delivering Better Financial Outcomes package to, among other things, expand access to financial advice about savings, retirement, and insurance for all Australians.
The next tranche of legislation clarifies which advice topics can be collectively charged through superannuation and allows funds to send targeted prompts to boost member engagement at key life stages.
The legislation also delivers on a longstanding request from financial advisers, replacing the statement of advice with a more fit-for-purpose client advice record.
However, the government has left out the modernised best interests duty and details on the new class of advisers from this tranche, saying that work on these reforms is still ongoing.
“Reforming the best interests duty and removing the safe harbour steps will provide advisers with confidence to deliver appropriately scaled advice. The new class of adviser is also vital to allowing life insurers, financial advice licensees, superannuation funds and other institutions to expand the supply of quality and affordable advice to consumers,” Financial Services Minister Stephen Jones said.
“These remaining pieces will be consulted on and combined with the draft legislation released today to be introduced into Parliament as a single package. The whole package works together to expand access to affordable, quality financial advice.”
The government is inviting feedback to ensure that the reforms deliver on their objectives and operate effectively across all parts of the financial advice industry.
Consultation closes on 2 May 2025.
Industry applauds ‘momentum’
In a statement shortly after news broke, Financial Services Council CEO Blake Briggs said the industry is pleased with the government’s momentum, particularly as the federal election approaches.
“We are pleased the government is maintaining momentum to deliver on its commitment to deliver advice reform,” Briggs said.
“On the eve of the federal election, the financial services industry can view the financial advice reform package released today as indicative of the government’s continued commitment to the reform agenda following the election.
“Layers of red tape and onerous regulation has meant that financial advice now costs more than $5,000 in some cases, putting it out of reach for millions of Australians. The government’s broader financial advice reform package has the capacity to reduce the cost of providing advice by 40 per cent.”
Association of Superannuation Funds of Australia (ASFA) CEO Mary Delahunty also weighed in on Friday, emphasising the importance of accessible financial advice.
“The super sector believes advice shouldn’t be a luxury – it should be a fundamental part of the retirement journey,” Delahunty said.
“ASFA is committed to ensuring all Australians can access quality, affordable financial advice – because good advice is good retirement policy.
“ASFA will continue working with the sector and the government to progress this package.”
The Super Members Council (SMC) echoed these sentiments, saying that the reforms would better equip super funds to support members in planning for retirement, considering factors such as super balances, pension eligibility, and household income.
“Not knowing enough about super can lead to poor decisions, like leaving accounts inactive, or withdrawing funds without proper planning,” CEO Misha Schubert said.
“Making simple information and advice available to more Australians is the big missing piece of the retirement puzzle. These reforms will help make advice more affordable.”
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