This year’s Federal Budget is more about what isn’t included, not what is, according to the FAAA.
The association says its calls to fix the problems with the CSLR, ASIC funding levy, the financial advice exam cost and ATO portal access “…have been ignored in this year’s Federal Budget.”
FAAA CEO Sarah Abood says in a statement she’s disappointed that “…while financial advisers continue to struggle with significant cost increases, like many small business operators, calls to the government have been disregarded.”
She adds that Minister Stephen Jones has acknowledged the importance of financial advice “…but there is little remedy for the skyrocketing costs that advisers have been and will continue to pay. Much of these costs will inevitably be passed on to consumers, further raising the cost of professional financial advice…”
Abood notes that while there are some positives for advisers running small businesses, in the extension of the instant asset write-off scheme for a further year, along with energy rebates “…we continue to urge the government to consider the six ideas we have put forward. These will have a direct practical impact on reducing the cost to consumers of professional financial advice,” (see: CSLR Costs Spiralling).
The association says that good news for consumers of financial advice “…included some updates to social security deeming rates and aged care funding arrangements, along with previously announced tax cuts and new energy rebates.”
It notes that large packages for AML/CTF adherence ($168 million) and the rollout of Digital ID ($288 million) should have a positive impact on the work that financial advisers do.
FSC: Budget Leans into Long Term Plan for Financial Services
Meanwhile, the FSC has welcomed the Government focusing on its long term plan for financial services and the investment community.
It says the Federal Budget recognises “…the important role investors play in supporting Australia’s economic growth, outlining a ‘single front door’ strategy for major investors, and a central role for the financial services sector in the Government’s Sustainable Finance Policy Agenda.”
CEO of the FSC Blake Briggs says Australia’s investment community “..is key to the transition to a low-carbon economy and the Federal Budget recognises the importance of developing an internationally aligned regulatory regime and a clear investment product labelling framework.”
The Government confirmed industry-supported reforms to superannuation to support Australians who take paid parental leave by paying superannuation on the Government PPL scheme from 1 July 2025.
“We congratulate the Government on moving forward with its paid parental leave scheme which would increase the financial security and wellbeing of Australian women, who retire with 25% less superannuation than men,” Briggs adds.
