Jenny McAllister (NSW, Australian Labor Party, Shadow Cabinet Secretary) Share this | Link to this | Hansard source

I don't intend to detain the chamber long on this question, but I rise to move the amendment circulated in my name on sheet 1237:

(1) Page 2 (after line 12), after clause 3, add:

4 Review of operation of amendments

(1) The Minister must cause a review to be conducted of the operation of the amendments made by this Act.

(2) Without limiting subsection (1), the review must consider:

(a) the conduct of financial advisers and trustees; and

(b) self managed superannuation fund investment performance and governance.

(3) The review must start as soon as practicable after the end of 12 months after this Act commences.

(4) The Minister must cause a written report of the review to be prepared within 6 months of the commencement of the review.

(5) The Minister must cause a copy of the report of the review to be tabled in each House of the Parliament within 15 sitting days of that House after the report is given to the Minister.

(6) In this section, Minister means the Minister administering the Superannuation Industry (Supervision) Act 1993.

Labor doesn't support this bill. I won't go into a great deal of detail about why not. I would refer people to the evidence that was put before the Senate committee on this question. I rely, in brief, on the comment that was provided by Super Consumers Australia, people you might expect to rely upon to provide good advice about what is in fact in the interest of consumers. They said this:

… we don't believe the Treasury Laws Amendment (Self Managed Superannuation Funds) Bill 2000 … will make a meaningful contribution to delivering better member outcomes in an environment where barriers to accessing un-conflicted financial advice persist.

That's at the heart of our concerns about this bill, because the risk is that the people who will benefit most from these arrangements are financial advisers giving shonky advice—the kind of advice we've seen again and again and again, the kind of advice exposed in the Hayne royal commission. There are inadequate protections for consumers, and this bill further exposes people to these risks. It's on that basis that I have moved this amendment, which simply does this: it seeks to have a review of the operation of this bill.

Frankly, if the government is as confident as it says it is about how terrific this bill is going to be, it won't object to performing a review. A review would require a consideration of the conduct of financial advisers and trustees and the performance and governance of self-managed superannuation funds. I don't know why the government wouldn't agree to that, and I encourage government senators to consider voting for a pretty sensible amendment that would cause a review of a new government policy within 12 months.

Nick McKim (Tasmania, Australian Greens) Share this | Link to this | Hansard source

I rise very briefly to associate the Australian Greens with Senator McAllister's remarks and to indicate for the record that we will be supporting this amendment.

Jane Hume (Victoria, Liberal Party, Minister for Superannuation, Financial Services and the Digital Economy) Share this | Link to this | Hansard source

Thank you, Senator McKim and Senator McAllister, for those contributions. This bill increases the maximum number of allowable members in a self-managed super fund and small APRA fund from four to six. It's not a complicated bill at all. The increase in the maximum number of allowable members intends to provide additional consumer choice and flexibility to manage retirement savings. That's especially so for large families.

The opposition amendment asks for a review to be conducted of the operation of this amendment, and the review must also consider the conduct of financial advisers and trustees and SMSF investment performance and governance. The government's position is to oppose this amendment. Firstly, the opposition's amendment to review whether self-managed super fund membership should be expanded after 12 months of passage of this legislation will create considerable uncertainty for those that want to take up the option of a five- or six-member self-managed super fund in the first 12 months of the amendment operating. Secondly, it's rather unfortunate and, indeed, disingenuous of the opposition to disparage the good work that financial advisers do and the contribution that they make to the financial wellbeing of thousands and thousands of Australians. In fact, the Morrison government has implemented a number of reforms that strengthen the financial advice sector, providing consumers with much better access to affordable and high-quality financial advice.

So far, the government have strengthened and simplified the ongoing fee arrangements framework to minimise the risk of a consumer being charged a fee for no service. We've amended the disclosure requirements to ensure that financial advisers disclose whether they are independent, which was recommendation 2.2 of the Hayne royal commission. The government have also committed to introduce legislation by 30 June this year that would establish a single disciplinary body for financial advisers. This is in response to Commissioner Hayne's finding that, while sanctions are available to ASIC to take against financial advisers, the lack of less serious sanctions means that ASIC generally only focuses on the most serious of incidents. And while the government has announced that AFCA will soon be wound up, its functions will certainly remain. Treasury will be responsible for standard setting and a code of ethics, and ASIC will be responsible for administering the exam.

The great work that AFCA has done to lift the education, training and ethical standards of financial advisers will continue. The government has, in fact, agreed to implement the Hayne royal commission's recommendation to review measures that have been implemented by the government, by regulators and by financial services entities to improve the quality of financial advice. I think we can safely say that we all know which side of politics supports members' rights to manage their own money—and it's certainly not the Labor Party. I remind the chamber that, at the last election, the Labor Party in fact proposed $57 billion worth of retiree tax, which was very anti self-managed super.

The CHAIR: The question is that amendment (1) on sheet 1237, as moved by Senator McAllister, be agreed to.

Sue Lines (WA, Deputy-President) Share this | Link to this | Hansard source

The question is that the bill stand as printed.

Question agreed to.

Bill agreed to.

Bill reported without amendments; report adopted.