The association has congratulated the government on its re-election and says it looks forward to working with it on measures which strengthen the sustainability and viability of the SMSF sector and the financial advice profession.
Peter Burgess, chief executive of the SMSFA, said the SMSF sector is a vital component of the super industry with total funds exceeding $1 trillion and membership nearing 1.2 million.
“We strongly support meaningful reforms which improve the accessibility and affordability of high-quality financial advice for consumers and we look forward to working with all members of the new Parliament to achieve these outcomes,” Burgess said.
“The Productivity Commission report that highlighted $3.5 trillion would pass on to future generations over the next 25 years emphasised the need for the industry, regulators and government to work together to establish a suitable advice framework that minimises its cost and expands its consumer reach.
“From the perspective of the SMSF sector, having a professional advice sector that can service the 1.2 million Australians who choose to manage their superannuation is critical, and we welcome the opportunity to work constructively with the government on legislative and regulatory reforms that will deliver this result.”
Meanwhile, the Financial Advice Association Australia said it is ready to continue working with the re-elected Labor government to strengthen the financial advice profession and improve access to quality, professional and affordable advice for all Australians.
Sarah Abood, chief executive of the FAAA, said the association looks forward to working closely with the government to deliver “meaningful reforms that support professional financial advice”.
“Australians are increasingly recognising the vital role that quality advice plays in achieving financial wellbeing. This is a time for genuine policy progress, and we are ready to assist the government in delivering it,” Abood said.
The FAAA recently outlined five priority actions for the next government, developed through extensive member consultation, including fixing the Compensation Scheme of Last Resort, providing adviser access to the ATO portal, delivering effective DBFO reforms and implementing a standardised fee consent form.
Abood highlighted that delivering on these priorities will reduce costs, support growth in the profession, and improve consumer access to advice.
“One of the clearest messages from our members is that well-meaning but overly complex regulation has made financial advice harder to access and more expensive. We need to cut unnecessary red tape and ensure that advisers can focus on delivering great outcomes for their clients,” she said.
She also called on the government to take active steps to grow the profession by supporting new entrants and addressing long-standing barriers to entry.
“We must make it easier for talented individuals to join our profession. That includes offering financial support to employers of Professional Year candidates, making the exam more accessible, and ensuring flexibility in the education framework,” Abood said.
The Super Members Council said it will push for parliament to lift the low-income super tax offset (LISTO) to strengthen retirement for 1.2 million low-income workers.
Misha Schubert, chief executive of the SMC, said as the government looks to pursue changes to tax settings on earnings on high super balances, Australians on low incomes continue to miss out.
“LISTO has not been updated in 13 years, falling out of sync with tax bracket changes and rises in Superannuation Guarantee rates,” Schubert said.
“The drafting of crucial legal reforms to reform super’s death benefit laws so family violence perpetrators do not profit from their abuse is also a crucial item for early action. SMC will continue to work across the full breadth of the parliament to progress a positive policy agenda to make Australia’s world-envied super system even stronger for millions of everyday Australians.”
Yes. It is a very frightening aspect. Basically, it can be a dictatorship. especially also because the Labor party members act as one. Except for when they don’t and they are forced to leave because of the personal abuse etc. No place for freedom of thought as a member of the Labor party. You are simply shut down or out. But, that’s what the majority of people voted for and that’s what we’ve got, so we have to accept it.
Write to your local Labor member? That’s what I did – I am still waiting for a response from the MP for my new area. My boundaries have changed. My last Labor member did nothing except to refer my letter to the Treasury department and their replies to me showed either they did not understand my position (displaying complete incompetence for their given position), or they simply did not care. It was probably a combination of both.
Thanks again to Peter and his Team. There is not much support for us, I’m afraid outside of the SMSF industry. People want more handouts and the pantry is bare, and our assets are just sitting there literally for their taking with this new law.
SMSFs make up 25% of the $4 TRILLION in super . Zero chance of that ever happening. Be realistic Roger.
It is precisely because SMSFs make up 25% of the $4 trillion in super that Labor may grasp this small window of opportunity over the next 3 years. Ideology outranks everything in the ALP/Union diaspora.
With effective control of the Senate now, what stops Labor from following their ideology to just outright ban SMSFs altogether? No need for Div 296 at all.