Anne Stanley (Werriwa, Australian Labor Party) Share this | Hansard source

I rise to make my contribution to the Treasury Laws Amendment (2023 Measures No. 3) Bill. Today the Albanese Labor government continues its work in standing up for consumers, and this bill will make some necessary changes that will undoubtedly help and serve as a reminder that the economy's priority should be with the consumer. When a consumer purchases a product or service they are entitled to believe that it will serve its function. At the bare minimum they should have the certainty that it is safe and that it will not cause harm. But that was not what we saw in the royal commission into the misconduct in the banking, superannuation and financial services industry—we saw systemic abuse and consumers being ripped off. This government, after being elected last year, has been working to fix the system to make it fairer and safer for consumers.

Today we are supplementing the Financial Sector Reform Act 2022 with another key piece of legislation passed by this government. It was originally passed to reinforce compliance with the National Consumer Credit Protection Act, passed in 2009 by a previous Labor government. Australians have come to expect that Labor governments will look after them, and we will continue to do so. It is a responsibility of government to minimise harm, to protect and to serve, and that is why there will often be product intervention orders put in place—to protect those consumers. It should be expected that if an order is put in place, it will be followed. There would be an outcry if a recall order was put in place for a food product and vendors ignored the order and continued to sell it. We should expect the same of credit facilities. If a product intervention order is in place, will now be able to stop the avoidance activities that others have engaged in previously.

Consumers have the right to be protected. They have a right to be informed and to have access to advice. Sadly, we've seen an almost halving of the number of practising financial advisers in this country. Recently, I spoke to a constituent who had only just been informed, a couple of weeks before the end of the financial year, that their financial adviser was retiring and would no longer assist them. It being so close to the end of the financial year, just as tax time was rolling around, made it very difficult for this constituent. They now have to try to find a new financial adviser as soon as possible. That's why the Albanese government is delivering on its election commitment to better recognise the experience of existing financial advisors. This is to retain those who have been diligently working for consumers and provide further incentives for others to enter the profession. It makes sense in legislation to encourage good behaviour just as often as we discourage bad behaviour.

The amendments we are making today are for experienced financial advisers—those with a decade of experience and no adverse findings against them. To stay in the industry, if they've pass the required exam, there will not be a requirement for them to complete up to eight tertiary-level units before 1 January 2026. Since the introduction of this requirement, the number of practising financial advisors has dropped from 28,000 at its peak to approximately 16,300 now. Also, many new financial advisors have been unable to, or for technical reasons have been prevented from, joining the industry. In order to address the short supply of financial advisors, this government will not be making it harder for those who have done the right thing, and will act in the best interests of consumers. That's why we will be encouraging more competition in clearing and settlement cash entities. As I'm sure many year 12 economics students around the country will tell you, competition is good for the market but also good for the consumer. It leads to better prices and better outcomes. The only one who wins in a monopoly is the monopoly, and it is the same when it comes to clearing and settlement services.

In order to make a more competitive and fairer environment, we have followed the recommendations made by the Council of Financial Regulators. We've heard the calls to empower the Australian Securities and Investments Commission as well as the Australian Competition and Consumer Commission. This legislation will give ASIC the ability to put in place rules to ensure that consumer outcomes are protected from monopoly abuse and to oversee any competition that may develop. It will also strengthen the ACCC to enable it to arbitrate and produce binding decisions to protect consumers from price gouging and stop providers from abusing their share of the market.

Consumers already have enough to worry about, and that is why the Albanese Labor government will protect them and reduce their burden. This is also seen in the bill through improving the flexibility of the First Home Super Saver Scheme. Trying to buy a home is stressful enough, so we are making multiple amendments to previous tax legislation to avoid seriously punishing first-home buyers. This will allow them to correct mistakes made during the release process of the First Home Super Saver Scheme. We will be improving the scheme so that individuals can amend and revoke their applications to have funds released without being prevented from reapplying in the future.

I know that all the schedules of the bill have been the subject of consultations with stakeholders and other interested bodies. The government and the Minister for Financial Services has, as the government does with all changes, listened and considered all submissions. We will increase the period in which first-home buyers can request a release authority after entering into a contract to purchase or construct a home, from 14 to 90 days. It is laudable that this government has worked to provide more rigorous and extensive reforms to the financial industry, to protect consumers while also recognising where to show discretion, to understand the pressures that everyday people are under and to make it easier for them to manage their finances.

The Albanese government has always recognised that its duty is to everyday Australians: to keep them safe, to give them access to information, to ensure that their industries are well maintained and regulated, and to give them the opportunities to improve their lives. I commend the bill to the House.

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