Sam Rae (Hawke, Australian Labor Party) Share this | Hansard source

I am excited to rise to speak on the Treasury Laws Amendment (Delivering Better Financial Outcomes and Other Measures) Bill 2024. In beginning, I would like to acknowledge the thrilling and spirited contributions of the colleagues that have come before me.

The regulation of financial advice in Australia has been the subject of much attention since the release of the Hayne royal commission, which uncovered countless examples of financial institutions delivering conflicted advice that failed to put the financial interests of consumers first. While reforms were implemented in response, in many cases they have not resulted in improved financial advice but, rather, simply caused financial advice to be inaccessible to ordinary Australians. That's why the Albanese Labor government is committed to delivering a package of reforms that will ensure that quality financial advice is accessible to working people. This legislation represents the first tranche of that package, which comes in response to the government-commissioned Quality of Advice Review.

With this bill, the Albanese Labor government is reducing red tape and removing regulatory barriers that don't add a consumer benefit and are making professional advice very costly. By providing clearer legislative support for personal and general advice, this legislation will reduce the number of hoops consumers have to jump through in order to receive assistance. It will provide greater flexibility for providers of personal financial advice and apply that flexibility to more advice situations to maximise the benefits from this measure without weakening consumer protections. Specifically, this will enable providers to provide more tailored and relevant information to consumers by allowing financial services guides more flexibility, both in content and presentation.

At the heart of the government's proposed changes, through this bill and subsequent tranches, is the concept of accessibility. We want to increase the amount of high-quality advice Australians can access and ensure that it comes at an affordable cost. Currently, accessing qualified financial advice in Australia is a hurdle race for many. The high cost, often exceeding $5,000, puts it out of reach for the average person. Additionally, the number of qualified financial advisers has declined by approximately 35 per cent in the last five years and simply can't meet the growing demand from a population of over 25 million. This has left a gap filled by unregulated sources such as social media influencers. At best they offer very questionable advice and at worst they expose people to scams, potentially jeopardising their very hard earned savings.

That's why in response to the Quality of Advice Review the Albanese Labor government has proposed a new category of 'qualified advisers'. These professionals will receive specific training to offer simple, targeted advice on matters such as budgeting, superannuation contributions or navigating mortgage options. This will inject much-needed affordability and accessibility into the system.

These reforms will be particularly important for the five million Australians approaching retirement who may need support in navigating the pension and superannuation systems. Most of these people, especially middle-income earners, will retire on a mix of superannuation, personal savings and government support rather than fully self funding or relying on the age pension. With these various financial sources come a range of potentially complex decisions, and these reforms will provide far greater legal certainty to financial institutions about the provision of advice to their customers—for example, by allowing super funds to consider personal and household circumstances when providing advice to members.

It's worth noting that while the government's response to the Quality of Advice Review, including this legislation and subsequent bills, is about making financial advice more accessible it does not compromise the quality of advice or the financial safety of Australians seeking that advice. Ensuring that Australians can easily and affordably access financial advice is essential. With Australian households facing cost-of-living pressures, financial advice must be readily accessible to ensure working people are getting a good deal on financial products such as mortgages, insurance and superannuation. By removing roadblocks, increasing choice and prioritising safety, this bill empowers individuals to easily navigate financial product markets and get a better deal for themselves and their families.

These reforms are components of a broader Albanese Labor government plan to ensure that working people can access and take advantage of the best financial products and services the market has to offer. I commend the minister and their team for the diligent work and the values based commitment to this legislation. Our government will continue to deliver the necessary legislative reforms to deliver for working people in communities such as mine.

A division having been called in the House of Representatives—

Sitting suspended from 17:45 to 17:56

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