Today, the Albanese Government has introduced the first tranche of legislation to deliver its comprehensive package of reforms to ensure Australians have access to quality and affordable financial advice.
There are over five million Australians at or approaching retirement who need assistance to navigate the pension and superannuation systems. Unfortunately, the average cost of financial advice puts professional advice out of reach for many Australians.
The Treasury Laws Amendment (Delivering Better Financial Outcomes and Other Measures) Bill 2024 implements reforms which reduce unnecessary red tape that adds to the time and cost of preparing financial advice.
The legislation streamlines the delivery of financial advice by consolidating fee documents for ongoing fee arrangements into one simplified document and allows more flexibility in how financial services guides are provided.
The rules for conflicted remuneration will be simplified by making clear that benefits paid by clients, including from their superannuation accounts, are not conflicted remuneration.
The legislation strengthens transparency and protections for consumers who receive personal advice by introducing a consent requirement before purchasing an insurance product that will result in a commission payment.
The amendments will also support Australians to access the advice they need to achieve a dignified retirement by making clear in the law that Australians can use their superannuation accounts to pay for financial advice about their superannuation. It does not expand the scope of fees which can be charged to superannuation accounts.
Further legislation will be developed to implement the remaining elements of the Delivering Better Financial Outcomes package in 2024.
The Government thanks all stakeholders for their thoughtful and constructive engagement on the draft legislation.
