Sam Dastyari (NSW, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Acting Assistant Treasurer, Senator Cormann. I refer to his statement on Friday to the Australian Financial Review where he said, 'We will continue to implement the government's FoFA reforms in full.' I also refer to his statement to the same paper on Monday in which he declared he had 'decided to pause the process on the FoFA regulation'. What is the minister's position today?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

I thank Senator Dastyari for that question. I am very happy to confirm for Senator Dastyari that the government is committed to implementing our important improvements to the Future of Financial Advice laws in full. The legislation to give effect to that election commitment was introduced in the House of Representatives last week and is continuing to progress through the usual parliamentary process, including through a Senate inquiry to be chaired by my friend and colleague Senator Bushby, the chair of the Senate Economics Legislation Committee.

What I have done, as a sign of good faith and to facilitate further consultation with key stakeholders in this particular area of public policy, is to say that we would not proceed immediately with pressing the go button on the regulations related to the legislation. I would just make the general point—

Opposition Senators:

Opposition senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Senator Cormann, just halt there for one moment because there is noise on my left. I need to be able to listen to the minister's answer. Minister, continue.

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

The Labor Party clearly does not enjoy it when a minister actually is directly relevant in answering the question. What I would just say here, by way of broader comment, is: the reform proposals that we have put forward are a very important part of our agenda to restore the balance between ensuring appropriate levels of consumer protection while ensuring that high-quality financial advice remains affordable for everyone. Labor in government imposed too much unnecessary, costly regulation on the sector, pushing up the cost of advice for consumers in the process. Every bit of additional and unnecessary advice pushes up the cost for those people who are saving for their retirement. We should not be imposing more costs on them than is absolutely necessary.

Sam Dastyari (NSW, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. I refer the Acting Assistant Treasurer to his statement yesterday when he informed Australians that he has decided to pause the process of rolling back Labor's reforms while remaining committed to implementing the already announced changes. Minister, are the government's retrograde changes to financial advice laws paused, or are they proceeding?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

Senator Dastyari actually started quite well with his first question, and I answered it very clearly. His second question makes an erroneous assertion. The position we took to the last election was that we would improve the Future of Financial Advice laws which impose an excessive regulatory burden on consumers and on financial planners. We have said that we would maintain the best interest duty, and, indeed, strengthen the operation of the best interest duty by providing certainty for consumers and financial planners on how it operates, and we have said we would not be bringing back conflicted remuneration for financial advisers. We stand by those commitments. We will, however, cut all of the unnecessary red tape which is unnecessarily and inappropriately pushing up the cost of advice for those Australians saving for their retirement. We actually think that Australians should have access to the most affordable, high-quality advice possible. (Time expired)

Sam Dastyari (NSW, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Minister, why have you had at least three positions since Friday on changes to FoFA laws?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

I completely reject that assertion. We on this side of the chamber understand that this is a highly technical area of our laws, and that it is quite easy for people with political motivation, or with vested commercial interests like Labor's friends in the union-dominated industry funds, to create mischief in order to—

Opposition Senators:

Opposition senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

When there is silence on my left we will proceed.

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

Just to make sure that Labor is absolutely clear, we remain committed to the policies we took to the last election. We are progressing those policies through legislation that was introduced in the House of Representatives last week which continues to progress through the parliament and we have paused the implementation of the regulation related to that legislation—even people on the Labor Party side of the parliament should understand some basic process issues like that.