Michelle Landry (Capricornia, National Party) Share this | Link to this | Hansard source

My question is to the Assistant Treasurer and Minister for Small Business. Will the Assistant Treasurer please explain to the House how the government's comprehensive response to the Murray report will improve Australia's financial system?

Kelly O'Dwyer (Higgins, Liberal Party, Minister for Small Business) Share this | Link to this | Hansard source

I would very much like to thank the member for Capricornia for her question. The Murray report is, indeed, a very, very critical report that was delivered to the government on a root-and branch review of our financial system. It is the most extensive review of our financial system for more than 15 years. The government today announced 48 measures in response to the inquiry. Those 48 measures go to: strengthening of the resilience of our financial system; improving the efficiency, competitiveness and choice in our superannuation system; stimulating innovation; supporting consumers fairly; and strengthening the accountability of our regulators and their powers.

Specifically, though, I would like to highlight one aspect of the measures that have been brought forward—that is, making sure that financial advisers have the highest possible ethical, professional and educational standards. We are going to do this in five ways: making sure that they have a degree; ensuring that they undertake a professional year; making sure that they undertake an exam; making sure that they subscribe to a code of ethics; and making sure they have ongoing professional development. This will bring them into line with other professions and make sure that those Australians who go to financial advisers for advice can be confident that that advice will be in their best interests.

It is not just us who say that this is a good thing. It is the chief executive of CHOICE, Alan Kirkland, who said:

Choice applauds the government for working towards a financial system that delivers fair outcomes for all Australians …

He went on to say that this, with the other measures we have introduced, will see consumer interest considered in every step of the financial product development, from product design to distribution and sale and after-sale processes.

It is not just in this way that we are improving outcomes for Australians. We are also strengthening their choice when it comes to their superannuation, making sure that there will be competition with default funds. We are doing this as well in relation to governance, making sure that we have the strongest possible governance arrangements apply to our superannuation system.

Unfortunately, though, those opposite do not agree and will not be supporting the governance legislation of minimum standards that is before the parliament in this House this afternoon. But I hope that they will have common sense and I hope that they will agree with the former union official Paul Howes, who said:

… I can't see anything negative in having more independents on boards …

It is such a shame that those opposite do not agree with minimum standards. (Time expired)