Calls Intensify for Swift Financial Advice Reforms in Australia
Calls Intensify for Swift Financial Advice Reforms in Australia
20
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
Amid pressing concerns from industry associations, the call for rapid finalization of financial advice reforms in Australia has been amplified.
The lack of direction from the Labour government regarding the Compensation Scheme of Last Resort (CSLR) is causing uncertainty in the sector, potentially stalling essential reform work.
The impending retirement of Stephen Jones has only added to the speculation surrounding the future of these reforms.
According to Sarah Abood, CEO of the Financial Advice Association Australia, there is an urgent need for a cap on the CSLR advice levy and a more equitable funding model. Failure to address these issues places an undue financial burden on advisers, due to product failures. Despite the Labour government's successful passage of CSLR legislation in 2023, a Treasury review has been triggered due to the notable increases in levies for the financial advice sector, raising questions about the scheme's sustainability.
As the FY26 levy is projected to reach $70 million, climbing to $123 million by FY27, concerns over funding 'but for' AFCA determinations, where tangible capital loss is absent, remain a hot topic. Stakeholder recommendations are expected to address this issue, with suggestions for excluding such claims from CSLR likely to gain traction.
Stephen Jones' departure has also left the government’s response to the Quality of Advice Review unfinished. Key elements, like the creation of a new adviser class and the removal of safe harbour steps, remain unresolved. Associations like the Financial Services Council and the Stockbrokers and Investment Advisers Association are urging the government to finalise reforms swiftly to improve access to affordable financial advice.
The implications for consumers and the broader financial services industry are significant. Unresolved advice reforms could hinder access to affordable financial advice, critical for millions of Australians, especially those planning for retirement. Complex regulations also pose challenges; simplifying these could make financial advice more accessible and cost-effective.
Sectors like superannuation are watching keenly as these reforms affect their ability to deliver on their promises of guidance and affordable advice. Both associations and industry leaders emphasize that clarifying these reforms is crucial to support growth and reduce costs, facilitating better consumer outcomes.
Looking forward, there is an anticipation of collaboration between industry bodies and the Albanese government to finalize unresolved issues. Sarah Abood has called for the removal of unnecessary red tape and the introduction of standardised documentation, ensuring advisers can focus on client outcomes rather than regulatory compliance.
Furthermore, as the Super Members Council (SMC) has solidified its stance against compromising superannuation policies for housing initiatives, pressure mounts on the government to maintain the integrity of super contributions. The role of super funds in providing large-scale, profitable housing solutions remains a focal point for the upcoming legislative discussions.
With incoming changes in governmental roles, stakeholder cooperation will be critical in refining these policies to ensure they meet the needs of a complex and evolving financial landscape.
Published:Tuesday, 6th May 2025 Source: Paige Estritori
Please Note: If this information affects you, seek advice from a licensed professional.
In a notable achievement within the Australian motorcycle industry, MotorCycle Holdings Limited has reported an 8% increase in new motorcycle sales for the fiscal year ending June 30, 2025. This growth significantly outpaces the national market's modest 1% increase during the same period. - read more
In a significant development for the motorcycle industry, Austrian manufacturer KTM AG has successfully secured €600 million in funding to meet its debt obligations, marking a pivotal step in the company's ongoing financial restructuring. This funding ensures KTM's ability to continue operations and reinforces its position in the global motorcycle market. - read more
The Australian motorcycle market has experienced a modest decline in sales during the first nine months of 2025, with a 2.2% decrease compared to the same period in 2024. According to data from the Federal Chamber of Automotive Industries (FCAI), a total of 63,988 motorcycles were sold between January and September 2025. - read more
In a significant development within the Australian motorcycle industry, Peter Stevens Motorcycles, a prominent retailer, has entered voluntary administration, revealing debts exceeding $65.9 million. This move impacts approximately 400 employees and numerous customers across the company's extensive dealership network. - read more
When it comes to purchasing a motorcycle, many riders opt for financing their purchase through a loan. While it allows you to enjoy the thrill of riding without hefty upfront costs, it's important to manage your monthly loan repayments effectively. By saving money on your motorcycle loan repayments, you can free up funds for other important expenses or accelerate the pay-off process. - read more
Imagine the thrill of cruising down Australia's scenic coastlines or thundering through its vast outback with nothing but the open sky above and the roar of the engine beneath. This dream of bike ownership is an alluring prospect for many, promising a sense of freedom that is hard to find elsewhere. - read more
Choosing a motorcycle can be an exciting, but overwhelming experience. With so many options on the market, it can be difficult to know where to start. That’s why we’ve compiled a list of the top 5 most popular motorcycles in Australia to help make your decision easier. - read more
Whether you're an experienced rider or just starting your journey in the world of motorcycling, understanding the ins and outs of motorcycle financing is crucial. - read more
Start Here
Knowledgebase
Mortgage Insurance: Insurance that protects a lender in case a borrower defaults on their mortgage.
