“The system needs to evolve,” she said during last week’s technical summit.

She highlighted during the summit how SMSF professionals are often placed in impossible situations, expected to provide guidance on matters where they are not licensed or authorised to give advice.

“Clients don’t understand the regulatory lines – they see a trusted adviser. And when that adviser can’t meet their needs, or worse, oversteps and risks a breach, both parties lose,” she said.

“It’s time we fix the framework so that trusted professionals can give the advice Australians need.”

Last week, the government released two consultation papers aimed at exploring how a new reporting framework on retirement outcomes could enhance transparency and create a better understanding of success in retirement phase.

The consultation papers will form two key planks of the government’s retirement phase reforms to improve choice, guidance, and products for members in retirement.

Treasurer Jim Chalmers said the principles and framework build on the obligations introduced by the Retirement Income Covenant and work in tandem with the government’s Delivering Better Financial Outcomes package.

The consultation paper on creating best practice principles for superannuation retirement income solutions said the principles will complement and build on existing trustee obligations under the current legislative and regulatory framework.

“While the principles do not replace, override or vary a trustee’s obligations under existing laws, they are intended to be clear and practical guidance on how a trustee can adapt their retirement phase offering to the composition of a fund’s membership,” it said.

The SMSFA said it has advocated for a more flexible, principles-based model of professional advice that better reflects the real-world needs of clients and enables professionals to support them through significant life events such as starting a business, funding aged care, or managing family wealth.

The Super Members Council (SMC) said that while the consultations will accelerate work that is already well advanced by profit-for-member funds to deliver a world-class retirement income system, urgent reforms are needed to widen access to simple advice.

The SMC said that well-designed best practice principles and new transparency measures will help ensure retirees have access to great retirement solutions and exceptional service.

“Access to timely information, guidance and affordable financial advice is the missing piece in the retirement puzzle, and the promised financial advice reforms must be urgently legislated,” it said.

The Institute of Finance Professionals Australia said Treasury sought submissions for “superannuation in retirement” in February 2024.

In its submission, it recommended:

• Excluding SMSFs from the Retirement Income Covenant to avoid regulatory overlap.

• A cautious introduction of new SMSF retirement products to prevent issues like legacy pensions.

• Retaining flexible account-based pensions with potential drawdown rate adjustments.

• Establishing a clear objective for the retirement system.

The red tape in regard to advice was a theme throughout last week’s technical summit, with many speakers advocating for clarity around the proposed reforms.

Neal Dallas and Victoria Mercer from the Business Depot highlighted in their session how easily professionals can come unstuck when legal duties collide with moral pressure.

Meanwhile, Louise Biti, director of Aged Care Steps, reinforced the urgent need for licensed advisers to step into the gap left by a system that has failed to keep pace with demographic reality.

“The advice gap isn’t closing – it’s widening. We need a smarter regulatory approach that allows qualified professionals to help Australians when and how they need it,” Waller said.

The association said it stands by its commitment to working with government, regulators and industry partners to reshape the advice landscape for the betterment of the community.