In a budget submission, Chartered Accountants Australia and New Zealand said COVID-19 has understandably seen the government delay a number of superannuation-related policies such as the implementation of the financial services royal commission recommendations and responses to recommendations by the Productivity Commission review into superannuation.
It also noted that the government has received the Retirement Income Review (RIR).
“We believe the government should release this document as soon as possible including all modelling used to produce the RIR findings,” the submission stated.
“We encourage the government to announce what it intends to do about the RIR findings as quickly as possible.”
CA ANZ stated in the submission that the retirement and superannuation system is too complicated for the average consumer to understand without obtaining professional assistance.
“In addition, there is no source of official government-provided information that consumers can access in order to judge one super fund from another,” the accounting body said.
“Ideally, a compulsory system should not have such outcomes, and we encourage the government to address these as a matter of urgency.”
The submission also argued that the overall retirement system discouraged savings other than those mandated by the government.
CA ANZ has also called for a thorough makeover of the limited licensing regime in its submission.
The government, it said, should implement a strategic advice model which is decoupled from product advice in order to retain existing members practising in financial advice.
CA ANZ said it plans to present a strategic advice model it has developed in collaboration with the accounting bodies, SMSF Association and the Financial Planning Association to the federal Treasurer.
“At federal government level, this advocacy has been on hold due to COVID-19,” the submission noted.
“However, it is now being further developed to present to the federal Treasurer, the NCCC (National COVID-19 Co-ordination Committee) as well as key members of the opposition,” it stated.
“Our submission to the NCCC suggests a pathway to untangle the regulatory complexity for advisers post-COVID-19, so more Australians can benefit by having more affordable quality financial advice from a trusted professional adviser.”
The submission noted that during the COVID-19 pandemic, ASIC saw fit to allow accountants to provide advice without an AFSL and without the need for a complex statement of advice.
“This reform was a step in the right direction to broaden the scope of advice allowed with our professional qualifications but without an AFSL, so we will pursue further relief from ASIC,” it said.
