As has been widely reported, Bill Shorten has been promoted to Cabinet, but will retain the Financial Services and Superannuation portfolio, following a ministerial reshuffle announced by Prime Minister Julia Gillard on Monday 12 December.
Despite speculation that Minister Shorten would be replaced as Minister for Financial Services and Superannuation, he will continue to oversee the rollout of the Future of Financial Advice reforms, while also taking over as Minister for Employment and Workplace Relations.
Replacing Mr Shorten as Assistant Treasurer is NSW Senator Mark Arbib.
Mr Arbib previously held responsibility for the Sport, Social Housing and Homelessness, and Indigenous Employment and Economic Development portfolios.
There is an inextricable link between the success and the operation of our financial services sector, our superannuation system, and our workplace and employment systems
Speaking at a press conference immediately after the Prime Minister’s announcement, Mr Shorten said he was “stoked” by the promotion to Cabinet.
“I might also add that I am pleased that the Prime Minister has seen fit to keep some of my existing work as Minister for Financial Services and Superannuation,” he said.
When asked about the logic of bringing the financial services and workplace relations portfolios together, Minister Shorten replied: “Financial Services is the fourth largest industry in Australia, it is a significant employer in Australia right now and it will be a significant and growing employer in the future. Not all that covers industrial relations is smoke stack(s) and overalls, though they are a legitimate part of the Australian workforce… There is an inextricable link between the success and the operation of our financial services sector, our superannuation system, and indeed our workplace and employment systems.”
The Association of Financial Advisers (AFA) has congratulated Minister Shorten on his expanded portfolio, with AFA CEO, Richard Klipin, saying the Association would continue to work “constructively” with the Minister on the FoFA implementation.
“At the end of the day, the AFA shares the Government’s concerns,” Mr Klipin said. “Like the Government, we want to ensure that Australians continue to have choice when it comes to financial advice, so that they are ultimately well-advised and therefore better funded, comprehensively insured and have financial choices in life. Minister Shorten’s promotion means financial services has been elevated to the inner Cabinet, which is appropriate, given how important the issue is to the financial future of all Australians.”
The Self-Managed Super Fund Professionals’ Association (SPAA) echoed the AFA’s comments, calling on the Government to continue its focus on the financial services sector.
SPAA Chairman, Sharyn Long, said: “Notwithstanding Minister Shorten’s much larger portfolio, we are at the apex of Australian financial services sector reform, so it’s critical that the Government continues to engage with industry, including the SMSF sector, during this period in order to produce an optimum outcome that benefits all stakeholders.”
