The Albanese government has passed the first tranche of legislation to deliver its comprehensive package of reforms to ensure Australians have access to quality and affordable financial advice.
Quality financial advice and information can support Australians earn more and keep more of what they earn. Access to affordable advice protects consumers from scammers and can support them with cost of living pressures.
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 without providing consumer benefits.
There are significant improvements to pain-points in the delivery of financial advice. The legislation will:
- streamline fee documentation into one simplified document
- enable flexibility in how financial services guides are provided
- strengthen transparency and protections for consumers who receive personal advice about insurance products
The government welcomes the constructive engagement with stakeholders and responded to feedback received on the legislation. The legislation clarifies that Australians can use their superannuation accounts to pay for personal financial advice about their superannuation from an independent financial adviser. Superannuation funds will continue to satisfy their current obligations that govern the usage of member funds.
The amendments to the Bill facilitate the passage of the first tranche immediately, maintain consumer protections, and support access to financial advice for the five million Australians at or approaching retirement.
The second tranche of reforms will further increase access and affordability of financial advice and will be developed over the second half of the year. This includes the government’s commitment to reform statements of advice, modernise the best interests duty and remove the safe harbour steps, and increase the provision of advice by financial institutions.
The government will ensure these reforms provide access to safe, affordable and quality financial advice to deliver better outcomes for the millions of Australians seeking financial advice and information.